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business & economy

SAS Unions Agree to Austerity Measures

Published fredag 12 mars 2010 kl 10.05

Scandinavian Airlines (SAS) has finally reached an agreement with unions on an austerity package meant to keep the troubled airline afloat. The settlement with four flight attendant unions and four pilot unions includes measures to freeze wages, reduce perks and allowances, and cut down on pensions, all with the aim of saving a half billion kronor (70 million USD) per year.

The airline is a consortium jointly owned by Sweden, Denmark, and Norway, and has been in some hard financial straits for a number of years now. There was talk last year of Lufthana buying the airline giant, but they have since drawn themselves out of the negotiation process.

Swedish Enterprise Minister Maud Olofsson expressed support for selling Sweden’s part of the airline last year, but said that the airline would have to pull itself out of the red first.

With the newest austerity package approved by the unions, the airline might be one step closer to losing its Swedish owner.

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