Staff make sacrifices to keep SAS flying
SAS has won union backing for cost-cutting proposals that could secure the airline’s long-term future as it struggles to compete with low-cost rivals.
SAS, which is half-owned by the governments of Denmark, Norway and Sweden, said eight unions had agreed pay cuts and changes to working schedules and pensions.
The airline is looking to cut 800 more jobs and cut salaries by up to 17% to attract new funding.
"We now have a plan for long-term profitability. We have built a strong base," said chief executive Rickard Gustafson. "These were very big sacrifices … from the unions."
However, there is speculation that the airline will still struggle to survive as a stand-alone carrier in the face of stiff competition from Norwegian Air Shuttle and Ryanair, both of which have lower costs, and from larger rivals like Lufthansa and Air France.
Analyst Kenneth Sivertsen of Arctic Securities told the Guardian he though it likely SAS would be taken over and the airline’s chairman Fritz Schur has admitted a merger would be good.
However, SAS board member Jacob Wallenberg said the airline’s turn-around strategy ensured it would be able to stay in business long-term, either as a stand-alone carrier or in another shape. "Today we have created conditions to make it on our own," he said. "There may be a number of other strategic alternatives going forward."
Chairman Fritz Schur said a merger would be good for SAS.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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