Scandinavian Airlines' SOS plan

Scandinavian Airlines (SAS) has revealed their eleventh-hour plan to procure the additional 2.8 billion kroner in revenue needed to stay afloat, slashing jobs and reducing employee wages.

Employees will be subjected to longer working hours, fringe benefit deductions and an average 12 percent wage cut, while around 800 administrative positions will be discontinued, according to the Copenhagen Post.

The plan has been designed to reduce the SAS workforce from 15,000 to 9,000 employees; trimming around 6,000 jobs through the sale of subsidiary companies, SAS Ground Handling and Wider?e.

The bold and extensive strategy, known as 4Excellence Next Generation, will be implemented on November 18 once it has been met with approval from employees unions.

Even if the drastic cost-saving initiative does work, SAS must continue to collect close to 3 billion kroner each year in order to continue to do business and meet set financial goals by 2015.

“This is our ‘final call’, if SAS is to continue,” SAS managing director Rickard Gustafson said.

“SAS is facing major and necessary changes... I realise that we’re asking much of our employees, but there is no other way. I hope our loyal and dedicated workers have the will to fight for SAS’s survival.”

SAS has received credit lines in excess of 3 billion kroner from seven banks and the three Scandinavian countries of Denmark, Sweden and Norway, who together own 50 percent of all SAS shares.

Sourced: etravelblackboardasia