Scandinavian Airlines (SAS) has reached
agreements with two additional lessors (Carlyle and SMBC) representing in aggregate
7 narrow body aircraft, as well as certain related equipment, to amend the terms of existing aircraft and equipment
lease agreements.
The airline has now reached agreements with 12
lessors in total, representing 43 aircraft, as part of the chapter
11 process.
Through the amended
lease agreements, SAS is on track to achieve the targeted
annual cost savings of at least SEK 850 million to 1 billion in
reduced aircraft lease and capital costs, which constitutes an
important step in achieving the SEK 7.5 billion in annual cost
savings by fiscal year 2026 under the SAS Forward plan.
The new amended
lease agreements are subject to approval by the U.S. Bankruptcy
Court for the Southern District of New York, and to the plan of reorganization in the chapter 11 process becoming
effective.
Anko van der Werff, President and Chief Executive
Officer of SAS, said, “We are grateful to our lessors for working constructively
with us in making important progress in our chapter 11 process. We
will continue to take necessary action and pursue additional lease
amendments, in order to proceed with our transformation journey
and reach our targets in the SAS Forward plan.”
On 5 October 2022, SAS announced that it had
reached agreements with 10 lessors, representing in aggregate 36
aircraft, to amend the terms of existing aircraft and equipment
lease agreements. Those agreements were approved by the court on
14
October 2022.
The
airline has said it intends to continue negotiations with certain other
lessors to achieve further amendments in existing lease
agreements.
SAS is aiming to complete its court-supervised process in the U.S.
by July 2023.
