Group in talks with 39 unions
SAS Group has today (Aug 12) announced it is to cut jobs and reduce its payroll by as much as 20% after almost doubling its net loss in the second quarter.
The Group said it aims to save an extra SEK2bn (€195m) on top of the existing SEK4.5bn (€439m) ‘Core SAS' cost cutting programme.
Most of the savings will come from agreements with flight deck and cabin personnel but job cuts in the Group's other areas are expected.
"Additional measures are required to manage the unique, fierce competition in today's highly challenging market," SAS' president and ceo Mats Jansson said.
"Accordingly, it is essential that we now completely close SAS's cost gap with our competitors. This is a matter of competing on equal conditions and, ultimately, about the survival of SAS."
The Group's announcement comes the same day it reported a Q2 2009 net loss of SEK1.05bn (€102m), almost twice the SEK422m (€41m) loss it suffered in Q2 2008.
Operating revenues in Q2 2009 fell 15.2% year-on-year, while passenger numbers declined by 17.1% to 6.8 million.
Mr Jansson said: "The effects of the global recession are being felt extensively throughout the aviation industry and many carriers are continuing to implement far-reaching cost-saving measures.
Mr Jansson confirmed that talks had begun with all SAS's 39 trade unions in June to bring about further savings on staff costs.
But he added: "Despite having been successful in some areas, an agreement on the reduction of payroll expenses was not reached with all of the Group's trade unions."
The Group hopes to put in place collective agreements to include a 10-20% cut in payroll and pension among its flight deck and cabin staff.
But job losses are expected among the Group's non-airline operations including its production companies, central Group and corporate functions, SAS Ground Services and SAS Tech.
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