SAS has agreed terms with Air Lease Corporation and Jackson Square Aviation over 13 aircraft as part of lease deal amendment negotiations related to the carrier's Chapter 11 proceedings in the US.
"With these agreements, SAS concludes its lessor negotiations as part of its chapter 11 process, having reached agreements with 15 lessors in total, representing 59 aircraft in the aggregate, including seven wide bodies and 52 narrow bodies. Through the amended lease agreements, SAS expects to achieve the targeted annual cost savings of at least SEK 1bn in reduced aircraft lease expenses and annual cash flow items relating to aircraft financing, as part of the SAS FORWARD plan," the Scandinavian airline announced on January 13.
“Through these agreements, we expect to achieve our targeted cost reductions related to annual aircraft lease and financing costs, which constitutes important progress in reaching our overall targets in the SAS FORWARD plan. We are grateful to our lessors for working constructively with us. We continue making progress in our transformation journey and in becoming a more competitive airline," said chief executive Anko van der Werff.
SAS said it expects its fleet to "soon" consist of 134 aircraft, of which 35 are contracted through third parties, 22 are owned by SAS and 77 are subject to various financing arrangements.
The fleet reconfiguration is part of the carrier's cost-cutting plan being implemented under its US bankruptcy law proceedings.