SAS has emerged from US Chapter 11 bankruptcy protection by completing a restructure including investment of $1.2 billion.
The new principal owners of the reorganised carrier, investment firm Castlelake, Air France-KLM, Lind Invest and the Danish state, have agreed to appoint a new board of directors, which will be led by Danish business executive Kare Schultz as chairman in place of Carsten Dilling who is retiring.
The move was hailed the “start of a new era” for SAS which filed for Chapter 11 in summer 2022 as a strike by pilots exacerbated financial concerns.
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SAS said it emerges “as a competitive and financially robust airline with a strengthened capital structure, a highly dedicated and experienced management team, a commitment to drive transformational change and sustainability in aviation, and an attractive new customer offering together with the global airline alliance SkyTeam”.
SAS initiated its restructuring proceedings to accelerate the implementation of a comprehensive business and financial transformation plan called SAS Forward.
The airline has restructured more than $2 billion of debt, adjusted its aircraft fleet and related costs and reached agreements with key stakeholders, creditors and vendors.
Chief executive 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.
“It has been a complex process and I’m thankful for the constructive collaboration with creditors and partners, for the valuable support from the board, as well as impressive efforts, energy and enthusiasm throughout our organisation. Efforts that made it possible to save and restart one of the finest companies in Scandinavia.
“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.
“We have an excellent team, we are shortly joining the SkyTeam alliance family, and we have every opportunity to remain a leader in our industry for generations to come.”
Schultz added: “SAS has done a truly impressive job in navigating through the restructuring proceedings, and in building a competitive business positioned for growth.
“Together with SAS’ new investors, board and management, as well as with our partners in the SkyTeam alliance, we will continue to collaborate with partners and customers to drive transformative changes in aviation.”
Castlelake partner and deputy co-chief investment officer Joe McConnell said: “Castlelake congratulates SAS on its successful completion of restructuring proceedings and is gratified to have played an important role in its journey by providing a keystone financing solution.
“We look forward to watching SAS continue its longstanding legacy as an iconic brand and service provider in Scandinavia.”