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SAS AB Launches Comprehensive Plan to Improve Profitability and Secure Long-Term Financial Preparedness

Monday, 12 Nov 2012 02:00am EST 

SAS AB (SAS) announced that it has decided to launch a comprehensive plan to improve profitability and secure long-term financial preparedness. The new union agreements must be signed in the near future. The 4 (Four) Excellence Plan, which was announced in September 2011, is on target to deliver approximately SEK 5 billion in EBT effect. Despite this success, SAS foresees the need for further improvements to secure its long-term competitiveness. In a challenging environment for airlines, SAS must take decisive action to address its cost structure, improve its capital structure on a long-term basis, and take steps to reduce the negative impact on equity in 2013 due to changed pension accounting regulations. This will include: targeting approximately SEK 3 billion of annual improvement from cost reductions and organizational restructuring and approximately SEK 3 billion increased liquidity from asset sales, as well as new SEK 3.5 billion Revolving Credit Facility from Banks and Core Shareholders to secure financial preparedness conditional on signed union agreements and parliamentary approvals. The Board unanimously supports the plan and recommends all employees to do the same. The Board will meet again on November 18, 2012 to decide if the conditions for the implementation of the plan exist. SAS has initiated discussions with its relevant unions and will initiate a communication effort towards its employees to obtain their consent to the changes in the union agreements. 

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