252

News

SAS Airline announces shake-up after multi-billion kroner loss

Lena Hunter
February 23rd, 2022


This article is more than 2 years old.

The Danish-owned flight company promised a “complete transformation”, slashing costs, selling shares and inventing a whole new type of aviation fuel. Are they overstretching?

On Tuesday morning, the airline SAS – in which the Swedish and Danish states own 14.82 and 14.24 percent respective stakes – announced a 1.7 billion kroner loss for the period from November 2021 to January 2022.

The company has presented an ambitious plan dubbed ‘SAS Forward’ to reverse the trend.

A “complete transformation”
“If no fundamental changes are made, SAS will quickly deplete its financial reserves. Therefore, we will proactively implement a complete business transformation of our network, fleet, agreements and other cost structures,” read the airline’s public statement.

SAS has pledged to cut annual expenditure by 5.2 billion kroner, while raising new capital. That means converting company debt into shares, according to Simon Pauck Hansen, the head of SAS Denmark.

‘SAS Forward’ aims to position SAS as a “leader in sustainable aviation”, Hansen elaborated. So, together with fuel giants Vattenfall and Shell, along with Swedish carbon-recycling company LanzaTech, the airline will “investigate the production of the world’s first synthetic aviation fuel”.

… or a scrambling recovery
Like most airlines, SAS saw its profits tank during the pandemic. With its slew of routes between business hubs in the Nordics, wider Europe and America, the decrease in business travellers caused more financial harm than the fall in tourist numbers.

Compounding SAS’s woes have been the multitude of strikes and internal employee conflicts, as well as the eyewatering price of aviation fuel, which has skyrocketed by 174 percent.

A final bad omen: the ‘SAS Forward’ announcement comes a week after equity experts at Norwegian investment bank DNB Markets voiced concerns that SAS could face bankruptcy without a company-wide restructure.


Share

Most popular

Subscribe to our newsletter

Sign up to receive The Daily Post

















Latest Podcast

A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”