The Board of SAS approved the 4 Excellence Next Generation (4XNG) plan to address the issues facing SAS.
8 of 8 new union agreements have been signed November 19 – The Danish Pilot Union Agreement is conditional upon approval by one third of its members.
4Excellence NG is targeting approximately 3 bn SEK of annual improvement from cost reductions and organizational restructuring and approximately 3 bn SEK increased liquidity from asset sales.
New 3.5 bn SEK Revolving Credit Facility from Banks and Core Shareholders to secure financial preparedness conditional on final parliamentary approvals and approval of the Danish Pilot Union Agreement from one third of the members of the Danish Pilot Union
On November 12th the Board of SAS approved the 4 Excellence Next Generation (4XNG) plan to address the issues facing SAS. The 4XNG plan will improve EBT by approximately 3 bn SEK on an annualized basis and improve the overall cost flexibility through:
- New union agreements for personnel
- Centralization of administration functions
- Reduction of compensation to market levels
- New pension terms
- Outsourcing of Call Centers and Ground Handling
SAS also communicated that it has reached a conditional agreement to increase its existing 3.1 bn SEK revolving credit facility to 3.5 bn SEK and extend the term of the facility to 31 March 2015.
This new revolving credit facility is being provided by seven current lenders and SAS’ core shareholders (The Kingdom of Denmark, the Swedish State, the Kingdom of Norway and KAW) on equal terms. The availability of this new revolving credit facility is subject to final documentation, parliamentary approval where required, and it is conditional on signed union agreements that are a central and integral part of the 4XNG plan.
The condition to have 8 union agreements signed have been fulfilled on November 19, 2012, subject to a ballot approval by one third of the members of the Danish Pilot Union to be finalized in the next few days. The availability of the new revolving credit facility is still subject to parliamentary approvals (where required).
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.