SAS Reorg Plan Leads to Strike Threat
With SAS stock sliding south 5% Dec. 17 and labor strife heating up, we forecast turbulent times ahead for the Scandinavian airline.
SAS unions have not been happy with proposals to sell the airline’s Ground Services, Technical Services and cargo handling units, and will likely call for a strike as soon as the decision is officially made. Swedish media report the formal announcement will be made in January, with SAS holding out until after the close of holiday travel.
Investors, already gun shy following the airline’s troubles with Dash 8 Q400 planes and labor problems earlier in the year, appear to be jumping ship well ahead of a strike. Business travelers don’t have to be quite so cautious, but should be aware that work stoppage and cancelled flights could disrupt travel in the New Year.