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Economy

SAS Needs 5 Billion Kronor

Published tisdag 9 februari 2010 kl 08.50

Amid new heavy losses in the fourth quarter of 2009, the ailing Scandinavian Airlines System (SAS) says it needs to raise 650 million dollars from its shareholders. The airline also says it aims to cut costs by 260 million dollars by expanding its savings package. SAS says the proposition is supported by the largest shareholders and a consortium of underwriting banks.

It is subject to a final agreement with SAS unions and approval by an extraordinary general meeting scheduled for April. The move announced Tuesday comes a year after SAS announced a major overhaul of the company, including a 40 percent staff cut, divestments and a 720 million dollar rights issue.

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