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Experts warn SAS against strike

Experts warn SAS against a dragged out strike as it may prevent SAS from getting back on its feet financially.

SAS is presenting its annual result on Wednesday in a week. The result is the weakest ever for the company with its expected deficit of about SEK 2 billion (USD 273 million).

According to the Swedish financial paper Dagens Industri, the 2003 result was supposed to mark a change, but there may be some time before the situation changes with the current strike costing the company about SEK 15 million (USD 2 million) per day.

“The timing could have been worse,” said Preben Rasch Olsen, aviation analyst at Handelsbanken Securities to the Swedish paper. “This demands a solution soon if it’s not going to hurt SAS seriously. The worst would be if the customers change to other companies.”

Also Aviation Analyst Lars Heindorff in Danske Securities said he believes that the SAS strike is bad for the company. He estimates that SAS may loose as much as SEK 25 million (USD 3.4 million) per day.

Friday is the next strike day and then another 80 departures will be cancelled.

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