The Scandinavian Airlines System (SAS Group) has announced that a further cut of 1000 to 1500 jobs will be neccesary, in order to carry out a new cost cutting program to save SEK 2 billion.
The SAS Group says the new cost reduction program in needed in order to to generate sustainable competitiveness.
The Group has announced second quarter losses of SEK 1039 million, compared with a surplus of SEK 131 million for the same period last year.
SAS says this program, which is in addition to the total savings measures under Core SAS of SEK 4.5 billion, includes establishing fully competitive collective agreements for flight deck and cabin personnel, a principle for optimizing production to make greater use of the most competitive production resources and further efficiency enhancements in the Group's administration.
"It is essential that we now completely close SAS's cost gap with our competitors. This is a matter of competing on equal conditions and, ultimately, about the survival of SAS," says Mats Jansson, President and CEO.
The largest labour union within Norwegian civil aviation, Parat, states that SAS in-flight staff must accept the need of cost cuts and a reduction of benefits, in order to save their own jobs..
Competing union, Norwegian Cabin Association, has earlier stated that salary cuts are out of the question.
Source: Norway Post.
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