Wednesday, May 22, 2024
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Carrier SAS files for Chapter 11 bankruptcy protection in US

COPENHAGEN, DENMARK (AP) – Scandinavian Airlines yesterday filed for bankruptcy in the United States (US), warning a walkout by 1,000 pilots a day earlier had put the future of the carrier at risk.

The move adds to the likelihood of travel chaos across Europe as the summer vacation period begins. The Stockholm-based group said it had “voluntarily filed for chapter 11 in the US, a legal process for financial restructuring conducted under US federal court supervision”.

Filing for Chapter 11 in New York puts civil litigation on hold while the business reorganises its finances, dubbed SAS Forward.

SAS said that its operations and flight schedule will be unaffected by the announcement.
CEO of SAS Anko van der Werff, said that the strike accelerated the move.

“The important thing is that this is about bankruptcy protection, it is not about a bankruptcy, but it is about financial reconstruction,” van der Werff said.