Scandinavian airline SAS and unions representing its pilots announced on Tuesday that they had reached an agreement, ending a two-week strike that has cost the struggling company between $9 million and $12 million a day. “After 15 days on strike, SAS and the SAS Scandinavia pilot unions have reached an agreement. The parties have agreed on new 5.5-year collective agreements and flights operated by SAS Scandinavia will resume on their scheduled traffic schedule as soon as possibleSaid SAS in a statement, following negotiations that lasted all day Monday and ended Tuesday morning.
“SAS pilots have taken responsibility to sign a new agreement with SAS and the strike will endthe Swedish Airline Pilots Association (SPF) said in a separate statement. In a statement, chief executive Anko van der Werff, said: “I am happy to announce that we have now reached an agreement with the four pilot unions for SAS Scandinavia and that the strike is over“. “Finally, we can resume our normal activities and transport our customers during their long-awaited summer vacation. I deeply regret that so many of our passengers have been affected by this strike“, he added.
Nearly a thousand pilots began their strike on July 4 to protest against pay cuts demanded by management as part of a restructuring plan aimed at ensuring the company’s survival, and against the decision to the company not to rehire fired pilots during the Covid-19 pandemic. According to the SPF, 450 pilots will be rehired under the new agreement.
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The day after the first day of the strike, SAS announced that it was filing for Chapter 11 bankruptcy protection in the United States. Last week, the company’s CEO, Anko van der Werff, warned that the prolonged strike threatened “the success of the Chapter 11 process and ultimately the survival of the company“. As the walkout entered its tenth day, SAS said it had already cost between 1 and 1.3 billion Swedish crowns ($94-123 million), with the cancellation of more than 2,500 flights. The strike also had asevere impact on chances of successof SAS Forward, the savings and restructuring plan launched by the company in February, had also alerted Anko van der Werff. “We are now continuing the important work of advancing our SAS Forward transformation plan and building a strong and competitive SAS for generations to come.“, said Anko van der Werff on Tuesday.
The summer promises to be difficult overall for European airlines and airports, faced with a shortage of staff which is affecting air traffic. After numerous job cuts linked to Covid-19, airlines and airports are struggling to recruit new staff in many countries. SAS, which employs nearly 7,000 people, mainly in the three Scandinavian countries (Sweden, Norway, Denmark), is also seeking to complete a capital increase plan of around 1 billion euros, to have fresh money. .