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airline industry

SAS continues union talks on rescue package

Published lördag 17 november 2012 kl 10.24
Photo: Jonas Nilsson/Scanpix

Scandinavian airline SAS and cabin crew unions are continuing negotiations about the rescue package aimed at keeping the airline afloat.

SAS management say they need a deal by Sunday.

Scandinavian Airlines, SAS, has been struggling to stay afloat for over a decade. A string of savings packages have proven inefficient and the threat of bankruptcy has been looming for a long time now.

Earlier this week, the airline presented a package of measures to avoid bankruptcy, including clearing a loan of SEK 3.5 billion and selling off assets worth SEK 3.billion.

The staff will be reduced by 6000 through outsourcing and layoffs. Those who remain may face pay cuts of up to 20 per cent.

The airline also plans to introduce new pensions savings terms for employees. Administrative services will be centralized in Stockholm.

Unions say they are hopeful a deal can be reached, and have also taken their own cost-cutting proposals to the meetings, according to Swedish Radio News.

Our journalism is based on credibility and impartiality. Swedish Radio is independent and not affiliated to any political, religious, financial, public or private interests.
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