SAS exits Chapter 11 bankruptcy ahead of SkyTeam transition

Scandinavian airline SAS has exited US Chapter 11 bankruptcy proceedings, the carrier announced on Wednesday (28 August).

The move, described as “a new era” for the company, comes after the European Commission last month approved the carrier’s restructure plan, which will see Air France-KLM take an initial 19.9 per cent stake in SAS, and just days ahead of its entry into the SkyTeam airline alliance on 1 September. 

Since filing for Chapter 11 bankruptcy protection in the US two years ago, the airline has restructured more than US$2 billion of debt, adjusted its aircraft fleet and reached agreements with stakeholders, creditors and vendors, the carrier said.

The exit financing transaction included a total investment of US$1.2 billion in the now restructured SAS, which comprised US$475 million in new unlisted equity and US$725 million in secured convertible debt.

SAS CEO and president Anko van der Werff said: “This is a historic day that marks the start of an exciting future for SAS’ customers, partners and colleagues. We have successfully completed our restructuring proceedings and we are now entering a new era.

“Now, we must look ahead and complete the transformation that we have started, continue our commitment to achieving net-zero emissions by 2050, and take advantage of the opportunities in a growing market,” he said.

SAS recently reported seeing a “continued increase in passenger volumes”. In July, load factor for the carrier exceeded 87 per cent, marking “one of the best months historically in terms of load factor”, while revenue passenger kilometres also saw a 6 per cent year-on-year increase.