As Scandinavian Airlines (SAS) emerges from bankruptcy, it plans to return 10 jets to lessors, a mix of Airbus and Boeing aircraft.
SAS Wants To Return Jets As It Navigates Through Bankruptcy
Beleaguered SAS has struggled for years. The pandemic did not help and the avoidance of Russian airspace effectively crippled its operations in Asia (though the carrier has maintained its link between Copenhagen and Tokyo). When pilots went on strike earlier this summer, SAS responded by pre-emptively declaring bankruptcy.
As SAS seeks to emerge from its bankruptcy reorganization leaner and better able to compete, it is returning 10 leased aircraft, including:
- 2 Airbus A350-900
- SE-RSB (registration number)
- 3 Airbus A330-300
- 3 Airbus A320neo
- EI- SIF
- 1 Airbus A321
- 1 Boeing 737-700
In its New York bankruptcy filing, SAS hopes to shed “excess leased equipment” some of which it asserts it is paying “significantly above market” for.
“SAS aims to reach agreements with key stakeholders, restructure the company’s debt obligations, reconfigure its aircraft fleet, and emerge with a significant capital injection.”
CEO Anko van der Werff noted:
“We don’t know when the Russian airspace is going to open again and we cannot pay for those aircraft because that will not allow us to attract investors. New investors will say ‘you have to clean up, otherwise we will not invest.”
A court will soon decide if SAS can walk away from these lease agreements.
SAS has asked a bankruptcy court in New York for permission to disavow 10 aircraft leases it claims it no longer needs, including nine Airbus and one Boeing jet.
While shedding aircraft may make SAS more efficient, it must consider the root of its calamities, which we have outlined here.
> Read More: Why Did Scandinavian Airlines Declare Bankruptcy In The USA?
> Read More: Why Did Scandinavian Airlines Fail?