Skift Take
A one-day strike has actually already hit the airline company by as much as $123 million, as the 2,550 flight cancellations impacted 270,000 guests. Unions have the upper hand, so we may see a breakthrough today.
Matthew Parsons
Crisis struck airline company SAS said on Friday settlements with pilots to protect new working terms and make savings that will permit it to protect its future will begin once again on Saturday.
A majority of SAS pilots in Sweden, Denmark and Norway walked out on July 4 after negotiations over conditions related to the Scandinavian carrier’s rescue plan collapsed. The celebrations had actually returned to the negotiating table in the Swedish capital on Wednesday.
“Negotiations have actually ended today,” Knut Johansen, head of public affairs at SAS, said. “We hope to start once again on Saturday.”
Swedish media reported that SAS was preparing a brand-new offer to put to pilots, without giving details. Johansen declined to comment on the negotiations.
“We wish for a service as quickly as possible,” he stated.
SAS has actually been struggling with increased inexpensive competition for several years before the Covid-19 pandemic heaped pressure on the airline company market. The federal governments of Denmark and Sweden, which are the most significant owners, see it as a key part of the area’s transport infrastructure.
The airline said on Thursday the strike had actually triggered 2,550 flight cancellations, impacting 270,000 travelers and costing the carrier in between $94 million and $123 million.
The provider cancelled 177 flights on Friday, totaling up to 62 percent of those set up, according to flight-tracking platform FlightAware.
SAS, which is attempting to execute expense cuts and bring in new investors, declared U.S. personal bankruptcy defense on July 5.
Shares in SAS were down 8.5 percent on Friday and have lost majority of their worth considering that the start of the year.
Pilots utilized by SAS Scandinavia, a subsidiary of SAS Group, have actually stated they would agree to limited wage cuts and less beneficial terms, but SAS has said that concessions used so far are inadequate for it to perform a rescue strategy announced in February.
Unions are likewise demanding that pilots who lost their tasks throughout the pandemic are rehired at SAS Scandinavia, rather than needing to take on external applicants for tasks on less appealing terms at recently developed SAS Link and Ireland-based SAS Connect.
Pilots at SAS Link and SAS Link are not on strike.
(Reporting by Helena Soderpalm, Anna Ringstrom, Johan Ahlander and Simon Johnson; Editing by David Goodman, Jane Merriman and Jonathan Oatis)
This short article was written by Helena Soderpalm from Reuters and was lawfully accredited through the Market Dive Content Marketplace. Please direct all licensing questions to [email safeguarded]
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