The SAS pilots’ strike is set to start on Wednesday and Scandinavian governments are taking part

Scandinavian Airlines System Denmark-Norway-Sweden, usually referred to simply as SAS or Scandinavian Airlines, is facing extreme difficulties this week.

There may be 900 SAS pilots on strike this Wednesday (June 29, 2022) if no agreement is reached in meditation. Additionally, some of the Scandinavian governments have agreed to a debt-for-equity swap and Denmark is also willing to inject new capital, while Norway and Sweden have clearly said no.

You can access SAS here.

Sweden and Norway agreed to convert the debt into equity, but refused to provide more capital to the airline. Denmark, however, is willing to cancel the loans and inject new capital into the airline if outside shareholders participate.

The airline’s goal is to raise about $1 billion in fresh cash and convert an additional $2 billion of existing debt into equity.

The SAS pilot unions have also indicated that they will go on strike from this Wednesday if their mediation is unsuccessful.

SAS has issued the following rebooking guidelines:

FREE REBOOKING DUE TO POTENTIAL PILOT STRIKE

As a precaution, SAS is offering passengers who have booked on flights that will be affected by a potential pilot strike the option to rebook the ticket once, free of charge.

The offer is valid for SAS tickets on SAS operated flights:

• SAS Scandinavia
• SAS link
• SAS connection
• Wetlease Partners – Air Baltic, CityJet, XFLY

If you purchased your ticket through a travel agency or tour operator, please contact them directly.

If you are traveling on a charter with an SAS flight with flight number SK7000-SK7999, please contact your tour operator. You will find the contact details in your travel documents.

You can modify your reservation free of charge on My reservationswhen the following criteria are met:

• The flight is not canceled
• The departure date of your flight is between June 26, 2022 and July 03, 2022
• Your ticket is purchased and issued on/before June 23, 2022
• You purchased the ticket on the SAS website, SAS app or via SAS customer service.

You can change new travel dates up to 360 days in advance from the date you make the change.

Your new reservation must be made to:

• Another flight operated by SAS
• To the same destination as on the original ticket
• The same class of service as on the original ticket must be available

Contact SAS customer service or your travel agent for a new reservation if you are traveling with:

• A baby
• Ordered a special meal
• You are traveling as an unaccompanied minor
• Have requested transportation of a wheelchair
• Traveling with a pet

Please note that if you have a group reservation and wish to rebook, you must contact the travel agent where you purchased the tickets.

SAS will not reimburse travelers for costs such as, but not limited to, accommodation, meals, or ground or air transportation related to voluntary rebookings.

A potential pilot strike does not affect all departures, check your flight status here

More information about flight disruptions

Conclusion

SAS was in a chronic state of financial difficulty for most of the 2010s and was once on the verge of bankruptcy.

The Danish, Swedish and Norwegian states have or have had stakes in the airline, and all have supported it with loans during the pandemic, as have most other governments of their national airlines.

It is interesting to see whether the governments of Norway and Sweden would eventually give in and inject new capital if the other option was the collapse of the national company. Only Denmark has indicated that it is ready to go beyond converting debt into equity.

Passengers due to travel on SAS over the next few days should be warned that their flight may not operate in the event of a strike, and finding alternative options could be a challenge.

These strikes are often canceled at the very last minute when an agreement between the parties has been reached.

It would be sad to see SAS collapse, but they would need to find a workable business model and ownership structure. Continually jumping from one crisis to another is no way to run a business.