SAS says deal reached to end pilots' strike
STORY: SAS says it’s reached a deal to end a pilots’ strike that threatened its survival.
The Scandinavian airline said Tuesday (July 19) it’s struck a wage agreement with four unions.
That will help it achieve some of the $700 million in annual cost savings set out in a restructuring plan.
The deal ends a 15-day walkout that saw some 3,700 flights grounded.
SAS filed for bankruptcy protection in the U.S. on the second day of the strike.
It says the stoppage cost it more than $145 million and affected 380,000 passengers.
Even before the strike it had been losing money amid rising competition from low-cost airlines.
Now the deal should allow it to raise new financing.
It also includes provisions on greater productivity and increased flexibility.
In return the company has promised to rehire hundreds of pilots laid off during the global health crisis.
SAS shares were up around 10% in early trades on Tuesday.
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