15-Oct-2012 3:31 PM

SAS to announce new package of cost reductions: report

SAS plans to announce a new package of cost reductions as early as this week amid continued economy weakness and overcapacity, according to a report by Takeoff.dk. The expected wide-ranging structural measures, including reducing staff costs by 15% through pay cuts and changes to work conditions, could also reportedly include asset disposals. The carrier's board of directors has reportedly secured permission from the Danish, Norwegian and Swedish Governments for the strategic plan. SAS head of investor relations Sture Stoelen said the airline’s current savings programme is “showing results” however the airline requires additional measures. Mr Stoelen said, “We’re not happy with our earnings. The high oil price and continued intense competition is forcing us to continue to turn every stone.”

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