SAS parks three of its largest aircraft – E24
SAS puts – again – long-haul aircraft on the ground after the company was forced to do the same during the pandemic.
It is the Danish industry website Check-in.dk who writes that SAS states that three long-haul aircraft have been parked for a long time at Copenhagen Airport Kastrup and Stockholm Airport Arlanda.
At the same time, SAS has initiated negotiations with the leasing companies that own the aircraft, but no decisions must have been made, they further inform the website.
The company has a total of six long-haul aircraft of the type Airbus A350–900. Two more are on order, but the delivery time for these was postponed last year from 2023 to 2024.
The aircraft type, which is among the most modern and fuel efficient available, can carry up to 300 passengers and large amounts of cargo. The type is also SAS’s largest.
New uncertainty
I am the travel restrictions in the wake of the corona pandemic have begun to ease, aviation has shown signs of improvement, SAS included.
However, Russia’s invasion of Ukraine, closed airspace and a galloping oil price have created new uncertainty about the future.
Also read
SAS on closed Russian airspace: – We get an additional cost for both fuel and time
SAS lost SEK 2.6 billion before tax in the first quarter of 2021/22, which for SAS runs from November to January.
This helped to increase the company’s interest – bearing debt to SEK 35.4 billion. At the same time, SAS has begun to draw on previously unused credit facilities totaling SEK 3 billion.
In connection with the company’s quarterly presentation, SAS announced strong measures to strengthen the balance sheet.
Also read
Fuel shock: Analyst believes SAS should increase prices
Through SAS Forward, the airline will, among other things, cut SEK 7.5 billion in annual costs. In parallel, SAS will collect and unknown amounts of money and experimentally convert debt into shares.
Facing E24, SAS CEO Anko van der Werff has been clear that success requires effort from all parties; employees, owners, as creditors.
– We need all parties to participate. I know that I repeat myself, but the plan is made so that everything must work at the same time, the SAS manager told E24 after the plan was presented.
Also read
The SAS boss will turn all debts into shares: – You are talking to the right guy
Jacob Pedersen, head of research at Sydbank, believes that the SAS manager will have challenges in getting employees on track after already deep cuts and strained relationships.
– The plan also requires a goodwill from the leasing companies to accept losses, and not least support from the Swedish and Danish state to carry out a capital raising, Pedersen wrote afterwards.
SAS will hold its annual general meeting today, Thursday 17 March, without any special tension attached to it agenda.
The company has announced that it will update the market on SAS Forward in April.
Also read
The oil price pants can make the flight more expensive: – Someone has to pay
Also read
SAS warns of «radical transformation»: Must cut billions and raise money
Also read