It seems that the final union that was holding out – the Danish Flight Attendants Union – has agreed to the savings plan which requires job cuts, longer hours and changes in operations to allow SAS to get extra funding.
SAS have a long way to go even after they’ve secured extra money from creditors, with the sale of lots of bits of SAS:
- Aircraft engines
- Widereo (an airline in the SAS group)
- Its ground handling division
- Outsourcing where possible
Is it enough for SAS to stay alive or will there be further drastic action needed? SAS is being eaten from the bottom with Ryanair competing in the ultra-low cost segment, and Norwegian Air Shuttle eating from the side with lower costs (and a long haul programme to boot, with new equipment)
This is going to be one to keep an eye on – and sadly, I don’t think this is going to end very well for many people.
One things is certain: SAS will have to be a leaner and more profitable outfit… and I’m not sure that’s possible even after today…