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?
Too bad about SAS. Their peemium product within Europe is pretty weak, but they have (or had) a solid longhaul premium product. I hope they find a way to survive.
SAS was planning to file for US Chapter 11 bankruptcy many months before the SAS mainline pilots had even decided to strike.
The bankruptcy filing wasn’t a pre-emptive strike against the pilot strike; it was a signal to the pilots that SAS wasn’t negotiating in good faith to avert a strike.
Is that Delta that I hear knocking on the door….or should I say the air leasing corporations knocking on Delta’s door.
Delta is known for picking up second hand aircraft; the NEOs and A350 would fit well in its fleet as long as the engines match……
lol Delta isn’t going to pick up 3 random 320NEOs.. they don’t operate any others of the type.
Each NEO is a claim towards “Carbon Neutral” nirvana to placate the eco-crazies. Also, NEO flight deck compatible with the entire A320 range (including CEO) as compared to B737 MAX 10 which may not be granted it’s requested waiver from Congress for flight deck compatibility with rest of MAX program as well as B737 NG.
As I stated earlier, Delta is known to leverage second hand airframes.