newstodate.aero

Jun 17, 2022 (newstodate): The noose seems to be tightening around the Scandinavian airline SAS, deep in debts, low in cash, and facing threats of an imminent pilot strike.
   As one latest development and as a consequence of its strike warning, the pilot union has now withdrawn its savings promises in exchange for an employment pledge and other conditions.
   SAS is pinning its hope for survival on the "SAS Forward" strategy that among other issues depends on unions' acceptance of targets for cost savings, and not least the injection of new capital from existing and new investors.   
   The Swedish government recently declined to invest further in SAS and aims at reducing or fully drop its stake in the carrier, while the Danish government has aired intentions of stepping in with further investments and an increase in ownership from currently 22 to up to 30 percent of the stake - on condition of retaining a major and determining influence in the Board.
   This may contain a rather contradictory position, with a minority stakeholder claiming disproportionate power of decision-making.
   -Even if Scandinavian governments eventually decide to cooperate to secure the survival of SAS, a new ownership structure comprising fresh institutional investors will result in demands for a fundamental change in the airline's route network, leading to a changed role for Copenhagen Airport, today the primary SAS hub, says Jens Andreasen, IPOS Institute Chairman, and designated Chief Negotiator for a consortium already investing in SAS for many years.