SAS set to exit Chapter 11 by summer

SAS expects of emerge from US Chapter 11 bankruptcy protection under a restructure plan before the summer peak.

Approval is due to be received from a US court in this quarter, followed by regulatory approval and a company re-organisation which will see $1.2 billion investment by a consortium led by Air France-KLM, private equity firm Castlelake and the Danish government.

Chief executive Anko van der Werff said SAS was making “steady progress” in its Chapter 11 process in the US.

Releasing quarterly results for the three months ending in January showing reduced winter losses, he said: “We currently expect to emerge from the restructuring proceedings around the end of the first half of 2024.”

He pointed out that cost reductions across the business “remain in focus to secure our cost competitiveness”.

“As part of the transaction, SAS also intends to eventually exit the Star Alliance and join the SkyTeam Alliance, of which Air France-KLM is a founding member,” van Der Werff confirmed. 

“Through the completion of this process and the opportunities presented by being part of SkyTeam, we will be able to further enhance SAS’ offerings for the benefit of our colleagues, customers and communities. 

“However, it is important to note that nothing is changing as of now. SAS is still part of Star Alliance and our EuroBonus members will continue to enjoy their usual benefits when flying on our partner airlines. 

“Members can continue to accrue and redeem points – just like today, and their benefits when they fly with SAS will not be impacted. 

“The agreed exit transaction remains subject to approval in connection with the confirmation of our Chapter 11 plan of reorganisation.”

SAS passenger carryings rose by eight per cent year-in-year to reach 1.7 million in February as capacity increased by 17%

“We continue to see a growing number of passengers choosing to travel with SAS,” said van der Werff.

“We are also pleased to see very stable operational performance, especially for a winter month, with regularity at 99.2%. 

“We look forward to continue strengthening our position in Scandinavia as we approach the summer season.” 

The airline will serve more than 130 destinations in over 40 countries this summer and is adding frequencies to popular points across Europe, as well as to North America and Asia.

Go to Source...