Sas air carrier in bankruptcy
US Chapter 11 appeal to restructure 1.9 billion dollar debt
Scandinavian Airlines has filed for bankruptcy in recent hours. The decision came at the end of a strike called by its pilots yesterday. In response, the airline's top management announced that it will file for Chapter 11 bankruptcy in the United States, a bankruptcy rule that allows companies to restructure following a major financial failure.
The union mobilization, which was joined by 1,000 workers yesterday, laid bare the airline's critical situation: it was forced to cancel 78 percent of its scheduled flights, or 236 flights. Now Scandinavian is appealing the Chapter 11 procedure to continue its operations in the skies, despite the start of the restructuring phase. The aim is to decrease the debt, which now stands at 1.9 billion dollars.
AVIONEWS - World Aeronautical Press Agency