dark_phoenix

https://mfn.se/ob/a/sas/sasno-sas-in...essen-758694bd

And in English
https://www.sasgroup.net/newsroom/pr...t-the-process/


Edited to add: Moderators, if you want to merge this into another thread, feel free. My rationale for creating a separate thread was that whilst this action was spurred on by the pilot strike, bankruptcy proceeding address a range of issues greater than the strike itself and I thought it would be good to try and keep those threads separate for conversation clarity.

livious

I posted this in the strike thread but think it makes sense to have a separate thread. Let's keep the strike thread for the immediate issues related to the disruptions and this thread for the next 9-12 months of bankrupcy speculation

RedChili

How can a company headquartered in Sweden seek chapter 11 in the USA?

Jainzar

Obviously SK has operations in the US. An airports and service providers probably want to have their money for the services they provided.

livious

Saw this posted elsehwere and felt it might be suitable here as it has a bit of history on how FFPs are affected by Chapter 11:
https://thepointsguy.com/news/freque...ankruptcy/amp/

GUWonder

Two years ago, Chilean, Colombian and Mexican airlines filed for Chapter 11 bankruptcy in the US. They weren’t HQed in the US.

For $2400+ per hour of law partner time, SAS can do it too.

My chances of getting the US DOT to make SAS pay me back for tickets SAS canceled. It is dropping by the second.

livious

Keep in mind Anko has done this with Avianca as well. I was just checking the bankrupcy thread in that forum as it should give insight as to what might happen

GUWonder

Avianca filed here in the US SDNY and got domiciled in the UK. But Anko was gone before the bankruptcy got wrapped up.

Is SAS using Milbank?

GUWonder

They are using Weil Gotshal in the US and MSA in Sweden for legal work.

Swedish lawyers are very cheap compared to the American ones.

oliver2002

The reuters report: https://www.reuters.com/business/aer...es-2022-07-05/,

GUWonder

SAS management went for the nuclear option, so let’s see how and where their gutless game of chicken ends up.

dark_phoenix

I think we're aligned here. It's nice to see I am not alone in my thinking


I am not sure why the pilot unions should even take SAS' phone calls at the moment since SAS management seems determined to reduce their salaries (and maybe even pensions?) to ashes. It's clearly time for the unions to lawyer up as well.

One of the things I am interested to understand is the average wage growth of pilot salaries between 2012-2022. Or more specifically whatever year they agreed to the 20% pay cut to keep SAS afloat. Whatever that period of time, I wonder if their salaries at the end of the time period recovered? From that perspective, I can understand that the pilots are upset if they agreed to a pay cut in 2012, got about 3% salary increase a year, so it took about 7 years to get back what you gave up...and get a little more in the process. And now management wants to bring them back down to 2012 salary levels or worse. To the extent that my example is accurate, I can empathise with them, even if I don't completely agree with how the pilots are responding (but they are using the key tool in their toolbox).

What a mess indeed.

jamesbrownontheroad

To what extent could either of the subsidiary operating companies SAS Connect and SAS Link form the basis of a new re-packaged / post-bankruptcy SAS? Are they structured in such a way as to be spun out and survive?

GUWonder

Let’s see what the other unions of relevance to SAS do in response. The nuclear game being played by SAS management isn’t limited to just knocking down the pilots.

It would depend upon who is willing and able to front the money/assets and then there is that operational side for the equipment and staffing situation too.

But with the management-supporting current or prospective investors and creditors, if they have a sense that one or more of the governments will come around to investing in a new or phoenix airline or those side units, they will be better positioned to screw over the legacy employees.

When willing to pay $2400+ per billable hour for even not-entirely-novel legal work, a lot becomes possible in the land where a pair of litigation lawyers owning a 500M+ SEK ($50,000,000+) home isn’t unheard of.

beachmouse

I get the impression that creditors might actually prefer a USA chapter 11 filing because the odds are decent they’ll eventually get back more of what is owed as part of a structured agreement for bills to be paid over time as the company hopefully keeps operating. A lot of other countries seem to go straight to liquidation bankruptcy and creditors are left fighting each other for crumbs from the carcasses of the now folded business.