Summary
- SAS has closed its Chapter 11 bankruptcy proceedings and the company reorganization process in Sweden.
- The airline exited the process with less debt and fewer aircraft in its fleet.
- The carrier’s CEO hailed the exit as a new era for SAS.
Scandinavian Airlines System (
SAS) has welcomed a new era, as the airline closed its Chapter 11 processes in the United States and company reorganization in Sweden.
Stronger position
In an interview with Reuters, Anko van der Werff, the chief executive officer (CEO) of SAS, who also led avianca through the COVID-19 pandemic, said that this was a new era for the Scandinavian carrier.
Van der Werff stated that the airline began its new period with lower debt and costs, positioning SAS in a better place than it was before it was forced into restructuring its business.
Photo: Omar F Martinez | Shutterstock
The airline filed for voluntary
bankruptcy proceedings on July 5, 2022. While it had survived the pandemic, the carrier had to move beyond, and it had planned to do so with its business transformation plan, ‘SAS FORWARD.’
Simultaneously, its pilots initiated a strike, further affecting the airline’s financial position.
“Through this process, SAS aims to reach agreements with key stakeholders, restructure the Company’s debt obligations, reconfigure its aircraft fleet, and emerge with a significant capital injection. SAS expects to complete its court-supervised process in the U.S. in 9-12 months.”
A new era
In a separate announcement on August 28, SAS hailed a new era in the company’s history, saying that the company successfully exited Chapter 11 bankruptcy proceedings and the subsequent company restructuring in Sweden.
“The company emerges as a competitive and financially robust airline with a strengthened capital structure, a highly dedicated and experienced management team, a commitment to drive transformational change and sustainability in aviation, and an attractive new customer offering together with the global airline alliance
.”
SkyTeam
Photo: James Pearson
Before the restructuring, the carrier’s shares were publicly listed in Copenhagen, Denmark, Oslo, Norway, and Stockholm, Sweden, with new ownership, which includes a consortium led by Air France-KLM, the airline marked the last day of public trading on August 13.
Reducing debt and adjusting its fleet
SAS detailed that during the process, it had successfully restructured $2 billion of debt, adjusted its fleet and related costs, and reached agreements with key creditors and other stakeholders.
The airline also highlighted that so far in FY2024 – from November 2023 to July 2024 – 18 million travelers hopped onboard the carrier’s aircraft, a 6.5% increase year-on-year (YoY).
Furthermore, SAS achieved its record-breaking monthly profitability in July, which demonstrated steady progress in reducing its costs by around SEK7.5 billion ($736.1 million) with the ‘SAS FORWARD’ plan.
Van der Werff remarked that it had been a complex process, and he was thankful for the collaboration from creditors and partners, as well as the support of the board of SAS.
“Now, we must look ahead and complete the transformation that we have started, continue our commitment to achieving net-zero emissions by 2050, and take advantage of the opportunities in a growing market.”
Ch-aviation data showed that in 2020, SAS had 131 aircraft. Throughout the next few years, the airline gradually retired more aircraft, including reducing the number of cockpit types.
As a result, it now has 75 aircraft in its fleet, which excludes 69 wet-leased aircraft from SAS Connect,
, and Xfly.
