SAS warns pilot strike puts at risk emergency bridge financing

Scandinavian carrier SAS AB has warned that emergency funding related to a bankruptcy process in the US is at risk from a pilots strike that entered its 11th day on Thursday. 

The airline, which filed for chapter 11 bankruptcy protection on July 5, remains in talks with potential lenders to obtain debtor-in-possession financing for as much as $700 million as part of the legal process.

“The strike is putting the success of the chapter 11 process and, ultimately, the survival of the company at stake,” Chief Executive Officer Anko van der Werff said in a statement.

The company said the short-term emergency funding is under threat unless it can demonstrate a road map to achieving the 7.5 billion kronor in annual cost savings--a goal which it says is becoming more difficult each day the strike proceeds. 

The strike, which has so far led to 2,550 flight cancellations and affected more than 270,000 passengers, is costing the company approximately 100 million to 130 million kronor per day, according to the statement.