Scandinavian, or SAS, the Swedish-Danish-Norwegian Star Alliance carrier headquartered in Stockholm, has filed for Chapter 11 bankruptcy protection in the U.S. following the start of a pilots strike that the carrier expects will cancel half of its flights.
The carrier expects bankruptcy to last 9-12 months and plan to use the process to assist in implemention of its $725 million cost-cutting plan which also includes conversion of some debt into equity.
They contend they will be able to continue operations and fully honor frequent flyer program obligations, and report a cash balance of US($756 million although they’re seeking an additional $700 million in financing. This comes after the airline burned through about a billion dollars of government subsidy during the pandemic and restructured regional operations.
It wouldn’t be the worst idea to credit any Scandinavian flights to partner frequent flyer programs, though unless you’re on q question for their elite status that’s generally a good idea anyway.
