Tragic negotiations to save troubled SAS or Scandinavian Airlines (OMX: SAS) have been going on late into the night. The company and its lenders had given midnight local time as the final deadline to reach a deal with the unions. The Parties weren’t making significant progress despite numerous suggestions by the unions willing to give some concessions until the last hours of the bargaining. They have clearly decided to call the company’s bluff regarding the take it or leave it ultimatum however, still not taking the situation to be as dire or at the very least seeking to get more time for negotiations. In the very last minute there have been some new developments and meetings with banks and unions will continue into the night.
Local press is reporting that a deal with one of the unions, SAS Norge kabinforening; the company's other cabin crew union from Norway was signed around 1.30 local time. This has been followed by all but one of the eight unions, with the lone holdover by market open being danska kabinförbundet, a Danish cabin crew union. Early Monday afternoon an agreement was reached with them as well. A downgrade from S&P on the company debt could not derail strong momentum of the share for the day.
The management and the lending banks have said reaching a multi-billion savings deal with the unions this weekend involving significant wage cuts is a necessary condition for being able to continue going concern. Should worst fears be realized and the company goes bankrupt, customers who purchased tickets directly from SAS will run into problems trying to get their money back where as those who used a credit card could have better luck. Customers on package deals should contact the company that arranged the travel and those stranded abroad without funds could contact local embassy. As of now thousands of passengers are anxiously waiting to hear any news regarding their flights tomorrow and in the coming days.
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