SAS And Pilot Unions Resume Talks As Crippling Strike Enters 10th Day

Scandinavian airline SAS and unions representing striking pilots resumed talks over a new collective bargaining agreement on Wednesday as the walkout entered its 10th day.

The 75-year old airline was struggling even before the pandemic hit in 2020 due to high costs and growing competition from low-cost carriers.

The pilots strike, which started in July 4, is now costing it $10 million to $13 million a day and has forced it to cancel more 1,200 flights at the peak of the summer travel season.

The carrier, whose main owners are the governments of Sweden and Denmark with stakes of 22% each, on Wednesday cancelled 242 flights, or 75% of those scheduled, according to FlightAware.

"We hope that we can solve this and that we can end this strike. That is why we are here," Roger Klokset, from the union representing SAS' Norwegian pilots, told reporters as he arrived for the mediator-led negotiations in Stockholm.

Loss-making SAS last week filed for U.S. bankruptcy protection seeking breathing space to restructure its business, saying the strike had hastened the filing. [nL1N2YM09P]

The Swedish pilot union said last week their latest bid included pilots taking a 5% pay cut, working more hours per week, working part-time in winter with a reduced salary and foregoing summer vacation.

Unions are also demanding that pilots dismissed during the pandemic are rehired at SAS Scandinavia, rather than having to compete with external applicants for jobs at newly started SAS Link and Ireland-based SAS Connect.

In addition to affecting hundreds of thousands of travellers, the strike is also putting stress on Northern Norway's health system as staff have not been able to fly in on time for some surgeries.

Norwegian authorities can stop a strike if they believe it can pose an acute danger to life and health. On Tuesday, they said the strike did not pose such a risk.

SAS shares were up 11% in mid-day trade.