Scandinavian airline SAS has successfully emerged from U.S. Chapter 11 bankruptcy proceedings, signaling a new era for the carrier. The European Commission recently approved SAS’s restructuring plan, paving the way for the airline to move forward with its strategic changes. This development comes as SAS prepares to join the SkyTeam airline alliance on September 1, marking a significant milestone for the company.
Having filed for Chapter 11 bankruptcy protection in the U.S. two years ago, SAS has undertaken a comprehensive restructuring process to address its financial challenges. The airline has managed to restructure over $2 billion of debt, streamline its aircraft fleet, and negotiate agreements with various stakeholders, creditors, and vendors. The exit financing transaction, which involved a total investment of $1.2 billion in the restructured SAS, has played a crucial role in enabling the airline to emerge stronger from bankruptcy.
SAS CEO and president Anko van der Werff expressed optimism about the airline’s future, describing the exit from bankruptcy as a historic day for SAS. Van der Werff emphasized that the completion of the restructuring proceedings marks the beginning of an exciting new chapter for SAS, its customers, partners, and employees. With Air France-KLM set to acquire a 19.9% stake in SAS, the airline is poised to benefit from strategic partnerships and alliances that will enhance its operational and competitive capabilities.
As SAS transitions into this new phase, it will focus on delivering exceptional service to its customers, strengthening its position in the market, and expanding its global reach through collaborations with other airlines. The airline’s successful emergence from bankruptcy is a testament to its resilience, adaptability, and commitment to overcoming challenges. By embracing change, SAS is setting the stage for sustained growth and success in the dynamic aviation industry.