Scandinavian Airlines, pilots unions reach deal to end 2-week strike
As part of the deal, hundreds of former pilots who lost their jobs during the pandemic will be offered their jobs back
Scandinavian Airlines, or SAS, announced Tuesday a deal with four pilots unions that puts an end to a 15-day strike prompted by a new collective bargaining agreement.
The new five-and-a-half-year agreement, SAS says, would assist the airline meet part of the $700 million in annual cost savings established in a business transformation plan, which also includes giving back unwanted planes to lessors.
Under the labor deal, hundreds of former SAS pilots who lost their jobs during the coronavirus pandemic will be offered their positions back, and their seniority will be restored.
"I am pleased to report that we now have come to an agreement with all four pilot unions for SAS Scandinavia and the strike has ended. Finally, we can resume normal operations and fly our customers on their much-longed-for summer holidays. I deeply regret that so many of our passengers have been impacted by this strike," SAS President and CEO Anko van der Werff wrote in a statement.
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SAS Link's Embraer E195 aircraft lands at Kastrup Airport, as pilots of Scandinavian Airlines go on strike, in Kastrup, Denmark July 4, 2022. TT News Agency/Johan Nilsson via REUTERS THIS IMAGE HAS BEEN PROVIDED BY A THIRD PARTY. SWEDEN OUT (Reuters Photos)
The strike had forced the airline to ground 3,700 flights, affecting 380,000 passengers during the summer travel season. The move had also cost the airline more than $145 million to date.
SAS filed for U.S. bankruptcy protection on the second day of the labor strike.
The airline said before the strike ended that it might have to sell "valuable strategic assets" and "radically scale down its operation and fleet" if the unions' action continued for much longer.
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A technician works aboard a SAS Airbus A320neo at Kastrup Airport after pilots of Scandinavian Airlines went on strike, in Kastrup, Denmark July 4, 2022. TT News Agency/Johan Nilsson via REUTERS THIS IMAGE HAS BEEN PROVIDED BY A THIRD PARTY. SWEDEN O (Reuters Photos)
Millions of European aviation workers are grappling with rising costs, leading trade unions to stage walkouts and call for increased wages.
SAS has been struggling since before the COVID-19 pandemic restricted travel, losing money as low-cost carriers ramped up the competition.
"The strike has been a tough situation for our customers, for our employees, and for our company as a whole. I would like to extend my sincere gratitude to all of my SAS colleagues who have worked tirelessly these past weeks to help our customers," Anko van der Werff said in the statement.
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People wait in line at the Arlanda Airport as pilots from Scandinavian airline SAS go on strike, near Stockholm, Sweden July 4, 2022. (TT News Agency/Ali Lorestani via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. SWEDEN OUT. NO COMMERCIAL OR EDITORIAL SALES IN SWEDEN. / Reuters Photos)
Some flight disruptions will still persist as the airline pushes efforts to resume normal operations, SAS said.
The deal is subject to approval of the four unions and a U.S. federal court.
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Reuters contributed to this report.