SAS to announce pay cuts and changes to work conditions
SAS is preparing to announce a new package of cost cuts. These will be wide-ranging structural measures that include reducing staff costs by 15%, with pay cuts and changes to work conditions, according to the Danish online magazine Takeoff, quoted by the news agency Reuters. There may also be asset disposals included in the cost cuts.
SAS is reported to be encouraged by a series of savings programs, the most recent of which aimed at cutting costs by around SEK 5 billion ($748 million) a year. The loss-making carrier posted a small profit in the second quarter of 2012. But clearly this is not enough.
SAS spokeswoman Malin Selander clarified that the airline was looking at ways to improve efficiency through a range of further cost-cutting options, but “no decisions have been taken”, she said. “We are gathering information.”
Takeoff / Reuters
[photo courtesy SAS]