SAS has reached an agreement with one additional lessor – Bocomm, representing three widebody aircraft as well as certain related equipment – to amend the terms of existing aircraft and equipment lease agreements.
Including SAS’ previously announced amended agreements with lessors on October 5 and on November 1, 2022, SAS has now reached agreements with 13 lessors in total, representing 46 aircraft, as part of its Chapter 11 process. The airline called said that this “constitutes another important step in reconfiguring the fleet and achieving the SEK 7.5 billion in annual cost savings under the SAS FORWARD plan”.
The new amended lease agreements are subject to approval by the U.S. Bankruptcy Court for the Southern District of New York, and to the plan of reorganisation in the Chapter 11 process becoming effective.
SAS had in total 83 aircraft subject to operating leases, debt financings, or other similar arrangements as of the commencement of SAS’ chapter 11 process on July 5, 2022.
Through the amended lease agreements, SAS stressed that it “continues to make important progress in achieving the targeted annual cost savings of at least SEK 850 million to 1.0 billion in reduced aircraft lease and capital costs”.
SAS adds that it intends to continue negotiations with certain other of its lessors to achieve further amendments in existing lease agreements.
“We continue to make progress in our chapter 11 process, and we are happy to announce that we have reached amended lease agreements with another of our lessors,” said Anko van der Werff, President and Chief Executive Officer of SAS. “We are grateful to our lessors for working constructively with us. We will continue to take necessary action and pursue additional lease amendments, in order to proceed with our transformation journey and reach our targets in the SAS FORWARD plan.”