SAS says pilot strike has so far cost $123 million
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COPENHAGEN, July 14 (Reuters) – Airline SAS said on Thursday a pilot strike has cost as much as 1.3 billion Swedish crowns ($122.5 million) so far, and that the strike might jeopardize the firm’s ability to secure additional financing.
SAS and unions were locked in more talks on Thursday to end a pilots’ strike over conditions related to the Scandinavian carrier’s rescue plan and which has kept most of its planes grounded for 11 days at the peak of the holiday season.
The parties resumed collective bargaining talks on Wednesday after negotiations broke down on July 4. But they have to yet to reach a deal to end the action that is costing the airline $10 million to $13 million a day.
Danish mechanics, who had been striking in sympathy with pilots, said on Thursday they were ending their action, a move that means SAS planes in Copenhagen would be serviced and could get back in the air swiftly once a deal with pilots is reached.
Swedish mechanics have not been striking.
“We really hope that we will reach an agreement today. These are constructive talks but I never comment on how they are progressing,” Jan Sjolin, mediator at the Swedish National Mediation Office, said of the talks with pilots representatives.
Long-struggling SAS needs to slash costs and attract new investors to survive. Pilots employed by SAS Scandinavia, a subsidiary of SAS Group, have said they would agree to limited wage cuts and less favourable terms but SAS said concessions so far are not enough for its rescue plan announced in February.
Unions are also demanding that pilots who lost their jobs during the pandemic are rehired at SAS Scandinavia, rather than having to compete with external applicants for jobs at newly started SAS Link and Ireland-based SAS Connect.
The carrier, whose main owners are the governments of Sweden and Denmark with stakes of 22% each, cancelled 201 flights on Thursday, or 64% of those scheduled, according to FlightAware.
Pilots employed in SAS Connect and SAS Link are not on strike.
