The day after the pilot went on strike, Scandinavian Airlines SAS, Said on Tuesday It was the latest response to the summer of Chapter 11 bankruptcy protection in the United States, the turmoil of European airlines.
SAS described the filing at the U.S. Bankruptcy Court in Southern New York as the “next step” in restructuring to address the financial difficulties of lost airlines, including cost savings of over $ 700 million. .. He said he was in talks with a potential lender who could provide $ 700 million to support the business through the process in Chapter 11. It was expected to emerge from the process in 9 to 12 months.
According to the company, many international airlines use U.S. courts for bankruptcy proceedings because the law in Chapter 11 benefits companies restructuring in business units in different parts of the world. That is.
SAS, the state-owned airline of Denmark, Norway and Sweden, called for a pilot strike on Monday but said it would continue to fly.CatastrophicIt warned that it would cause half of the flight to be canceled and could affect about 30,000 passengers daily.
According to FlightAware, SAS canceled 51% of its flights on Monday. By noon on Tuesday, nearly 80% of flights were canceled. SAS shares fell about 15% on Tuesday and 5% the day before.
“The ongoing strikes have already exacerbated the difficult situation,” airline CEO Anko van der Werff said in a statement Tuesday.
SAS troubles occur in the summer when the air travel industry is full of problems. This is caused by staff shortages and strikes by employees who are dissatisfied with long hours and low wages that are not keeping up with rising inflation. Airports across Europe were scenes of a long line of unfortunate passengers eager to travel after years of pandemic blockades.
Unable to find enough baggage handlers, check-in staff, security guards, or aircraft crew, airlines and airports are in a hurry to cancel their flights.
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Last Friday and Saturday, one in five flights was canceled due to a worker strike at a major airport in Paris. Another strike is planned for this weekend.
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The new cancellation at British Airways has shortened the schedule until October by 11%. Bloomberg reported on tuesday.
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Lufthansa’s unit, Brussels Airlines, announced on Monday that it will cancel about 6% of its scheduled flights in July and August to avoid strikes and reduce workload. “The entire aviation sector is facing a turbulent summer.” The airline said..
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The top executive of easyJet, a UK-based low-cost carrier, resigned on Monday after a series of flight cancellations.The airline said Peter BelieuThe company’s chief operating officer, who has resigned, was to “pursue other business opportunities.” The Spanish-based crew called for a few days of strikes this month with easyJet and its low-cost rival Ryanair.
