SAS Airlines seeks legal protection after pilots' strike nears tipping point

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SAS, the Scandinavian airline service provider, has applied for legal protection. 

Due to the pilots' strike, the company has applied for protection under the bankruptcy law seeking protection in the US court after the financial situation has collapsed. Due to the strike, more than half of the company's planes have been grounded. In this case, if the application is approved, the company will be able to continue the business.

The aviation industry was badly affected when the demand for air travel decreased due to the corona virus epidemic. Companies laid off thousands of employees during the pandemic when they were unable to survive due to covid.

However, with the recent outbreak of Covid-19, the demand for air travel has increased worldwide. Even in this situation, the companies are struggling to provide service according to the improvement in air travel.

Due to the lack of employees in the aviation sector, the employees went on strike in the summer demanding higher salaries. Since then, many airlines have been in trouble. At the same time, after SAS pilots went on strike, financial problems arose and the company had to seek legal protection. The company is planning to cut salaries as part of its restructuring plan.

The pilots have gone on strike against the plan. If the bankruptcy application is approved, the company gets permission to continue its business operations and restructure its debt under the supervision of the court. The company is also negotiating to raise 756 million dollars to continue the current service delivery. 

Aeromexico and Philippine Airlines are among other non-US airlines seeking bankruptcy protection. Through the bankruptcy process, SAS is trying to reach an agreement with key stakeholders, restructure the company's debt obligations, restructure aircraft operations and infuse significant capital.

SAS laid off 40 percent of its workforce in 2020, i.e. about 5,000 employees, due to the impact of Covid. SAS is the national flag company of Denmark, Norway and Sweden. 

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