SAS has $700 million in funding to help restructure Reuters Scandinavian airline SAS said on Saturday it entered into an agreement with Apollo Global Management to raise $700 million of new financing that it needs to see it through bankruptcy.
In early July, the airline filed for bankruptcy protection in the United States to help cut debt after the collapse of wage talks between the airline and its pilots caused a 15 day strike that added to travel chaos across Europe.
In a statement, SAS said it expects to complete the Chapter 11 restructuring process in nine to 12 months. The court will approve its $700 million financing by the end of September.
SAS chief executive Anko van der Werff said the strike accelerated its decision to file for Chapter 11 status.
The airline said the industrial action had cost it more than $145 million, affecting 380,000 passengers in the peak summer travel season, and could affect the firm's ability to secure additional funding.
Some 3,700 flights were shut down last week, falling 32% in July from June and capacity by 23%, according to SAS.
Swedish, Danish, and Norwegian pilot union members, who voted to adopt a collective bargaining agreement with SAS last month, said they will not resume their strike.
SAS, which had already lost money before the epidemic due to rising competition from low-cost carriers, had said it needed to slash costs and raise more capital to survive.
Denmark says that it might inject fresh funds if SAS gets support from private sector investors, despite the Swedish government rejecting the plea for more cash.