SAS cuts 800 jobs in \'final call\'

Agencies Posted: Nov 12, 2012 at 1433 hrs
Stockholm Scandinavian airline SAS AB says it will lower pensions and salaries and slash 800 jobs in an effort to cut costs by 3 billion kronor ($440 million) annually in what the CEO describes as a \'final call\'\' for the loss-making carrier.

SAS says it has reached a crucial deal for 3.5 billion kronor in credit lines from the Scandinavian governments and major banks, conditional on new agreements with labor unions.

The company also plans to raise about 3 billion kronor by selling regional airline Wideroe, ground handling services and other assets.

SAS made the announcement Monday as it presented its third-quarter results. Net profit doubled to 434 million kronor as sales rose 5 percent to 11.1 billion kronor.