Scandinavian Airlines System to cut 8,600 jobs

Tuesday, February 3, 2009

Sweden-based airline Scandinavian Airlines System (SAS) said it will reduce payrolls by 8,600 jobs as part of its "Core SAS" restructuring plan.

The airline will cut 3,000 staff directly and eliminate 5,600 by divesting business ventures, reducing the workforce by 40% to 14,000. The restructuring comes after SAS posted losses of 6.32 billion Swedish krona in 2008. The company is also to sell airBaltic and Spanair and its stakes in Air Greenland, BMI, Estonian Air, Skyways Express, Spirit Airlines and Trust. Spanair is to be sold for €1. The company intends to switch to concentrating on its core Nordic market.

SAS is to seek 6 billion krona from shareholders, while the government of Denmark is to invest 600 million Danish kroner in the company. Currently, Denmark owns 14.3% of SAS, Sweden has 21.4% and Norway 14.3%. The rest is publicly traded.

The airline was founded in 1946 when the state airlines of Denmark, Sweden and Norway merged their longhaul services.

Have an opinion on this story? Share it!

Sources

David Jolly. "SAS Cuts 3,000 Jobs and Seeks New Cash" — The New York Times, February 3, 2009
"SAS to fire 3,000" — The Copenhagen Post, February 3, 2009
"SAS reducing its workforce by 40%" — BBC News Online, February 3, 2009

Share this:

This page is archived, and is no longer publicly editable.

Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

This page is archived, and is no longer publicly editable.

Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.