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S.A.S. Strike: The Potential Fall of an Airline Giant

Written by Jonathan Frank

Earlier this month, Scandinavian Airlines Pilots went on a lengthy strike leaving hundreds of thousands stranded all across Europe. But what would lead these pilots to do such a thing? The SAS pilots were upset due to various issues on their payment, as well as the unmet demands of reasonable, and more predictable work hours. At the time of the strike, the pilots were making 34,000 Swedish crowns per month starting pay, and after 25 years could raise it to 98,000 Crowns. The striking pilots were demanding a 15% pay raise, as well as a proper schedule. While the cost of living is fairly high in Sweden the Pilots were making the equivalent to 3800 USD per month. The average monthly cost of living in Sweden for a student is the equivalent of 840 USD (Granted these pilots are not simple students).

SAS Airlines, an airline already struck with debt was a few years ago on the verge of bankruptcy. A week after the strike began, and after plenty of deals fallen through, the Pilots and the Airline made a deal to raise the pay by 10.5% by 2021 as well as work out proper schedules. The airline said that they may need to take some time in order to work out these changes. In total the strike lead to roughly 380,000 people being stranded and around 4,000 flights cancelled. Predictions show that the already struggling SAS Airlines may have lost their only chance at profit this year, and this may turn their company on the decline financially. While this event ended a few weeks ago, its effects still remain, and this may lead to a rapid decline, and possibly the bankruptcy of a major airline of Europe.

Sources:

https://www.reuters.com/article/us-sas-strike/scandinavias-sas-looking-at-ways-to-end-pilot-strike-idUSKCN1S5158

https://simpleflying.com/sas-strike-profit/

https://www.google.com/search?rlz=1C1GCEU_enUS821US821&ei=YMziXKjCI8fksAX83KGgAQ&q=swedish+crown&oq=swedish+crown&gs_l=psy-ab.3..35i39l2j0l6j0i10j0.1592.1592..1861…0.0..0.100.100.0j1……0….1..gws-wiz…….0i71.1x-rEveNDPQ

https://businessculture.org/northern-europe/sweden/cost-of-livin/

https://thepointsguy.com/news/sas-pilot-strike-70000-passengers-face-flight-disruptions/

Image: https://www.reuters.com/article/us-sas-strike/sas-pilots-strike-travel-plans-of-170000-passengers-at-risk-idUSKCN1S208R

About the author

Jonathan Frank