Copenhagen, July 5 (BNA): Scandinavian Airlines declared bankruptcy in the United States on Tuesday, warning that the withdrawal of 1,000 pilots the previous day had jeopardized the company’s future.
The move adds to the potential for travel chaos across Europe as the summer vacation period begins, according to the Associated Press.
Stockholm-based airline group SAS said it had “voluntarily applied for Chapter 11 in the United States, a legal process of financial restructuring that is taking place under the oversight of the US Federal Court.”
Filing a Chapter 11 application in New York puts civil lawsuits on hold while the company reorganizes its finances.
SAS said its operations and flight schedule would not be affected by the announcement.
The chief executive, Anko van der Werf, said the pilots’ strike had accelerated the move. “I think we were very clear that this could happen,” he said.
“The important thing is that it’s about bankruptcy protection, and it’s not about bankruptcy, but about financial rebuilding,” van der Werf said.
The carrier said it was “in advanced discussions with a number of potential lenders…to support its operations throughout this court-supervised process.”
The bailout presented in February aims to secure long-term competitiveness. SAS shares fell more than 9 percent to 0.56 crowns ($0.05) on Tuesday.
The airline is partly owned by the governments of Sweden and Denmark. In 2018, Norway sold its stake but has debts to the airline, and said it might
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