Scandinavian Airlines files for bankruptcy in the United States | National

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(The Center Square) – After a tumultuous weekend of flight delays and cancellations, Scandinavian Airlines announcement Tuesday its proposed bankruptcy filing in the United States.

Faced with the many difficulties faced by the airline industry, SAS decided to file for Chapter 11, also known as reorganization bankruptcy, which consists of reorganizing the assets and debts of a debtor.

SAS said he hopes the move will help him reach an agreement with stakeholders, restructure the company’s debt and receive a large amount of capital to stay in the market.

SAS plans complete the process within nine to twelve months.

SAS’s decision came after its pilots went on strike after SAS failed to reach an agreement with pilot unions.

“We are sorry if you are affected by the pilots’ strike resulting in delays and canceled flights,” SAS said. “SAS is working to find a solution as quickly as possible to avoid further inconvenience to travellers.”

Following the strike, SAS said it plans to cancel half of all its scheduled flights, which will affect around 30,000 passengers a day.

To help address the negative impacts of the strike, SAS is in talks with potential lenders for financing of up to $700 million.

SAS is also trying to help those whose flights have been canceled by rebooking new tickets for them, but they may not be at the same time as the original booking due to a shortage of available seats.

“There are a limited number of places available in the market,” SAS said. “This means we will unfortunately have limited opportunities to find a new seat within the same timeframe as your current reservation.”

Thousands of flights had to be canceled or delayed over the holiday weekend as understaffed airlines tried to cope with increased demand for air travel.

Other airlines have also cited staff shortages, primarily a lack of pilots, as the root cause of the industry’s problems.

“We have noted that we have 100 regional aircraft on the ground that we want to fly but cannot due to lack of regional pilots,” American Airlines spokesman Brian Metham said. said. “Like many network carriers, American has reduced our regional flights in recent months in response to regional pilot shortages.”

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