Airline SAS to restructure, aims to raise more cash

Ailing airline SAS Tuesday launched a cost savings plan and said it hoped to raise new capital after posting a wider quarterly loss as it grapples with weak demand and tough competition. The group, which has been struggling for years, said it would fully transform its business, including its network, fleet, labour agreements and other cost structures, aiming to save 7.5 billion Swedish crowns ($799m) a year. "The last two years have been the most challenging in the history of the aviation industry ... SAS is now, more than ever, in need of a new start," CEO Anko van der Werff said. The "plan paves the way for undertaking a complete revitalisation of SAS' balance sheet and to substantially strengthen SAS’ liquidity position," SAS said. The airline, in which Sweden and Denmark each hold a stake of around 22%, secured a 3b crown rescue deal from the two governments in 2020 to keep afloat. It did not specify how much capital it hoped to raise this time but its CEO later told investors the firm would be able to provide more detail in April. "The success of the plan and the ability to attract potential new capital relies on SAS fully achieving the SEK 7.5 billion annual cost take-out plan which in turn depends upon SAS stakeholders’ full participation." Danish Finance Minister Nikolaj Wammen said in an email the government was monitoring SAS' development closely and declined to comment further.<br/>