© Reuters. FILE PHOTO: View of SAS Airbus A321 and A320neo aircraft at Kastrup Airport parked on the tarmac, after pilots of Scandinavian Airlines went on strike, in Kastrup, Denmark July 4, 2022. TT News Agency/Johan Nilsson via REUTERS
STOCKHOLM (Reuters) – Crisis-hit Scandinavian airline SAS sees savings of $200 million through 2026 from a new collective bargaining deal reached with most of its pilots following a crippling two-week strike in July.
The flag carrier, pressured for years by low-cost rivals and ravaged by the pandemic, in February announced a big restructuring plan, and on the second day of the strike sought U.S. bankruptcy protection.
“The cost savings of approximately $200 million through 2026 provided for in the New CLA’s (collective labour agreements) are an essential component of the SAS FORWARD plan,” lawyers representing SAS said in a document filed Sept. 3 to the bankruptcy court.
SAS in July said the deal landed with pilots would help it achieve part of the $700 million of annual cost savings set out in the restructuring plan known as SAS FORWARD.
It at the time said the 5-1/2 year agreement with four of its pilot unions included higher productivity, increased flexibility in seasonal capacity and a commitment by SAS to rehire pilots laid off during the pandemic. Pilots said they agreed to large pay cuts.
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