Scandinavia’s airline reaches deal to end ‘devastating’ strike

Bloomberg

SAS AB reached a deal with pilots to end a 15-day strike, allowing the airline to gradually resume normal operations at one of the busiest times of year for travel.
The 5 1/2 year agreement will also allow SAS to move ahead with financing talks after it filed for bankruptcy protection in the US earlier in July, the carrier said in a statement. It expects to finalise the funding process within a few weeks.
“We now have come to an agreement with all four pilot unions for SAS Scandinavia and the strike has ended,” SAS Chief Executive Officer Anko van der Werff said. “Finally, we can resume normal operations and fly our customers on their much longed-for summer holidays.”
Van der Werff described the walkout as “devastating.” The airline estimates that the strike cost it up to 130 million Swedish kronor ($12.5 million) a day in lost revenue and costs.
About 3,700 flights were cancelled, affecting some 380,000 passengers.
SAS said the agreement with unions includes costs savings related to pilots’ terms and conditions as the carrier looks to cut annual costs by 7.5 billion kronor.
Pilots have agreed to withdraw litigation against the airline, according to the statement.
The carrier said it would rehire 450 pilots as it ramps up operations. The agreements are subject to approval by union members as well as a US federal court because SAS is undergoing financial restructuring.