Scandinavian Airline SAS Files for U.S. Bankruptcy Protection after Pilots Strike

A day after its pilots went on strike, SAS, the Scandinavian airline, said on Tuesday that it had filed for chapter 11 bankruptcy protection in the United States, the latest reverberation in a summer of turmoil for European airlines, the New York Times reported. SAS described the filing, made in the U.S. Bankruptcy Court for the Southern District of New York, as the “next step” in a reorganization that would address the money-losing airline’s financial difficulties, including cost reductions of more than $700 million. It said it was in discussions with potential lenders who could provide $700 million in financing to support operations through the chapter 11 process. It expected to emerge from the process in nine to 12 months. SAS, which is the national airline of Denmark, Norway and Sweden, said that it would continue flying, although on Monday it called the pilots’ strike “devastating” and warned that it could cause the cancellation of half of its flights, affecting about 30,000 passengers daily. On Monday, SAS canceled 51 percent of its flights, according to FlightAware. By midday on Tuesday, nearly 80 percent of its flights had been canceled. SAS’s stock price fell about 15 percent Tuesday, extending a 5 percent decline the day before. Read more.