SAS, the Scandinavian airline, files for bankruptcy protection after pilots strike.

A day after its pilots went on strike, SAS, the Scandinavian airline, stated on Tuesday that it had filed for Chapter 11 chapter safety in the USA, the most recent reverberation in a summer season of turmoil for European airways.

SAS described the submitting, made within the U.S. Chapter Court docket for the Southern District of New York, because the “subsequent step” in a reorganization that will deal with the money-losing airline’s monetary difficulties, together with value reductions of greater than $700 million. It stated it was in discussions with potential lenders who may present $700 million in financing to assist operations by means of the Chapter 11 course of. It anticipated to emerge from the method in 9 to 12 months.

The corporate stated many worldwide airways have used U.S. courts for chapter proceedings as a result of the Chapter 11 legislation presents benefits to companies present process restructuring with divisions in numerous components of the world.

SAS, which is the nationwide airline of Denmark, Norway and Sweden, stated it might proceed flying, though on Monday it known as the pilots’ strike “devastating” and warned that it may trigger the cancellation of half of its flights, affecting about 30,000 passengers every day.

On Monday, SAS canceled 51 p.c of its flights, in keeping with FlightAware. By noon on Tuesday, almost 80 p.c of its flights had been canceled. SAS’s inventory worth fell about 15 p.c Tuesday, extending a 5 p.c decline the day earlier than.

“The continued strike has made an already difficult state of affairs even more durable,” Anko van der Werff, the airline’s chief government, stated in a press release on Tuesday.

SAS’s troubles are available in a summer season riddled with issues for the air journey trade, brought on by staffing shortages and walkouts by staff sad with lengthy hours and low pay that has did not sustain with hovering inflation. Airports throughout Europe have been scenes of lengthy traces of sad passengers, wanting to journey after years of pandemic lockdowns.

Unable to search out sufficient baggage handlers, check-in workers, safety guards or plane crew, airways and airports have been in a rush to cancel flights.

• Final Friday and Saturday, a walkout by staff at Paris’s major airport precipitated the cancellation of as many as one in 5 flights. One other walkout is deliberate for this weekend.

• A brand new spherical of cancellations at British Airways has diminished its schedule by means of October by 11 p.c, Bloomberg reported on Tuesday.

• Brussels Airways, a unit of Germany’s Lufthansa, stated on Monday it might cancel about 6 p.c of scheduled flights in July and August, to keep away from strikes and cut back workloads. “Your complete aviation sector is going through a turbulent summer season,” the airline stated.

• A high government at easyJet, a low-cost provider primarily based in Britain, stepped down on Monday after a sequence of flight cancellations. The airline stated Peter Bellew, the corporate’s chief working officer, had resigned and would “pursue different enterprise alternatives.” Crews primarily based in Spain have known as for a number of days of strikes this month at easyJet in addition to its low-cost rival, Ryanair.