News Summary: SAS avoids bankruptcy

Last Updated: Mon, Nov 19, 2012 17:00 hrs

: Scandinavia's flagship airline SAS averted imminent bankruptcy after all eight unions signed new collective agreements that will see jobs, salaries and pensions cut.

PULLING OUT OF A DIVE: Without the unions' green light, SAS, which is half-owned by the governments of Sweden, Norway and Denmark, would have seen its credit line cut this week — effectively making the company insolvent.

DEEPER CUTS: The restructuring plan aims to cut costs by $3 billion kronor ($440 million) annually. It proposes slashing 800 administrative positions and eventually reducing staff numbers from 15,000 to 9,000.

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