Dépêches

Result from the Negotiations: SAS Negotiations Generate MSEK 130, but No Agreement Reached with Pilots’ Trade Unions (PFOR) and Cabin Denmark (CAU)

Dépèche transmise le 5 novembre 2009 par Business Wire

STOCKHOLM--(BUSINESS WIRE)--Regulatory News:

SAS’s (STO:SAS)(OSE:SASNOK) negotiations with the trade unions concerned have resulted in cost savings corresponding to MSEK 130. The changes to the collective agreements comprise changes such as employment terms for cabin crew in Sweden and Norway and Danish ground staff.

“The outcome of the negotiations is currently MSEK 130. Despite a common understanding regarding the need for cost reductions, we have not succeeded in reaching an agreement with the three pilots’ unions and Danish cabin crew, since a number of counter demands have been made in the final stages of negotiations, which the SAS management and Board of Directors cannot accept, since these counter demands imply too high nonrecurring costs.

“SAS still has a cost disadvantage relating to the collective agreements compared with, in particular, the newly established competitors. The target still remains to eliminate the cost gap. The management will now evaluate various solutions to close the remaining cost gap” says Mats Jansson, President and CEO, SAS AB.

In total, the result of the negotiations and the new and earlier cost-saving measures are expected to generate savings corresponding to SEK 5.3 billion, of which SEK 4 billion remains to impact earnings and SEK 1.3 billion already has impacted earnings. The management and Board of the SAS Group are working continuously to identify further cost-saving measures.

SAS Group Corporate Communications

SAS has published this information in accordance with the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication on November 5, 2009 at 10:30 a.m. CET.

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