Originally Posted by
dodgeflyer
Well aim of negotiations were to cut ca NOK 800m of opex related to pilot pay. Strike costs are now estimated at around NOK1bn, and increasing daily by 100-150m.
Whilst of course there's the long term effect of the pilot pay, putting the value of those at either a cycle at 5 years, or the 10-year non-strike commitment SAS is seeking; ie valuing the savings at either NOK 4bn or NOK 8bn (€400, 800m, respectively) if giving it full value, you have to wonder whether something where you're paying a guaranteed 100% loss of that saving upfront equivalent to 25% or 12.5% (and rising) is worth it?
Starting to be no way of saving face here for SAS...
As a corollary, once strike costs equal salary savings for the "foreseeable future", there is no way for SAS to improve its income into the sustainable territory and it will have to be liquidated. However, if it did not try to save on salary costs, it would have to be liquidated regardless.
Hopefully (for me as a SAS customer), pilots are able to count too (unless they are dead set on making sure SAS does not continue as a going concern, out of spite perhaps?)