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SAS receives all Court approvals necessary to continue operating its business

SAS’ flight schedule is unaffected by the filing and its reservations, customer service, SAS EuroBonus and all other customer services and systems will continue as normal.

SAS AB announces that it has received approval from the U.S. Bankruptcy Court for the Southern District of New York for all of its “First Day” motions as part of the company’s voluntary chapter 11 process in the U.S. 

The approvals granted by the Court confirm that SAS is authorized to continue to operate its business in the ordinary course throughout the chapter 11 process in accordance with the Court’s orders. The Court specifically authorizes SAS to, among other things, continue to:

  • Pay all employee wages and benefits;
  • Operate the airline in the ordinary course;
  • Honor existing customer programs, including the EuroBonus loyalty program;
  • Honor various pre-petition obligations owed to certain of its critical travel agency partners, vendors and suppliers;
  • Pay vendors and suppliers in full under normal terms for goods received and services provided on or after July 5, 2022; and
  • Pay all taxes, insurance, and other regulatory fees in the ordinary course.

Anko van der Werff, President and Chief Executive Officer of SAS, said, “These court approvals confirm that our operations will continue as usual as we begin our restructuring process in the U.S. We remain focused on providing the service our customers are used to, while accelerating our efforts to implement key elements of our comprehensive business transformation plan, SAS FORWARD. Ultimately, our plan is about improving our financial position and continuing our more than 75-year legacy as Scandinavia’s leading airline.”

SAS’ flight schedule is unaffected by the filing and its reservations, customer service, SAS EuroBonus and all other customer services and systems will continue as normal. Separate from the chapter 11 process, the strike undertaken by the SAS Scandinavia pilots’ unions will continue to impact flight schedules.

Close to 2 million passengers traveled with SAS in June
During June more than 1.9 million passengers traveled with SAS, an increase of approximately 220% compared to the same month last year. SAS’ capacity increased at the same time by approximately 150% compared with the same period last year. In comparison with last month, the total number of passengers increased with 7% and capacity was increased by 6%. The flown load factor for June was 80%, an improvement of 33 percentage points compared to June last year.

“Overall ticket sales have been positive in June, even if the whole aviation ecosystem still faces challenges in the global ramp-up. The notice of strike from the SAS Scandinavia pilots’ unions started impacting our bookings toward the end of the month. Our customers who for a long time have been longing to travel, had their plans disrupted in the middle of summer peak season, when we were looking forward to flying passengers. We continue our SAS FORWARD restructuring plan in which all stakeholders need to participate in order to secure SAS’ financial stability. To successfully continue the transformation of SAS we filed for Chapter 11 in the US on July 5. Update on the progress will be published once available”, says Anko van der Werff.

Co-Founder & Chief Editor - TravelDailyNews Media Network | Website | + Posts

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

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