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Worried about the future of SAS drives customers away for fear of being stranded

Thursday, 15 November 2012
Concerns about the future of SAS has left huge amount of unsold tickets this week meaning that it would even add more pain to the cash strapped company.

Private travellers have refrain from buying tickets from the company, a source said according to various media sources.

SAS is going through a very tough time as it continues to bleed money instead of making it. On Monday it presented a rescue plan that the company's CEO described as a "last chance" for the company to survive. That was ahead of negotiations with the various worker unions tied to the company and it was a condition for SAS to get access to funding from the credit institutions which the company needed to renew its credit facilities. This plan included what has been described as deplorable working conditions for workers including are large wage cuts.

Latest news out today suggested that the union are back on the negotiation table after having rejected the initial proposal presented by SAS. So if the Union persistently reject the SAS rescue plan the company will collapse and its planes will fall from the sky. This ambiguity is what travellers want to avoid.

"Sales are declining, it is seen quite clearly, "said the source to Reuters news agency, adding: "Yesterday was a really bad day with much, much less booking than otherwise."
The source says that the sale on Wednesday was much worse than a normal Wednesday. - "It's probably 30 percent down."

SAS spokesman Johan Dyrendahl has not given any specific comments on the booking situation, but he seems to implicitly confirm the fact that sales were down though he says it was not by a "massive number".

The source says that the reduced booking rate is seen most by private and business travellers and that, travel agencies still seem to have quite a lot of confidence in SAS.

SAS, which has long struggled with high costs and stiff competition from low-cost airlines, presented in conjunction with its delayed interim report on Monday, a savings program, which will include asset sales, job cuts, pay cuts, and new pensions program.
Scancomark.com Team

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