Nov 8 (Reuters) -
Airline SAS has made progress in talks with banks and on cutting costs
and selling assets, the company said on Thursday about efforts aimed at
ensuring its survival.
While negotiations are being
finalized, the company said it would delay reporting its full third
quarter results, which had been due on Thursday. A new announcement,
including the results, would come no later than Nov. 12, it said.
"SAS
has materially advanced these negotiations and the plan, and both are
expected to be finalized within a few days," the Scandinavian airline
said in a statement.
SAS has already published preliminary figures showing it made a pretax profit of 568 million crowns in the third quarter.
But
SAS has not made a full-year profit since 2007 and has said its
turn-around plan is expected yield approximately 3 billion crowns
($447.5 million) in earnings before tax. It also aims to sell assets
totaling around 3 billion crowns.
A source told Reuters last week
SAS is looking to sell its Ground Handling unit. Media have also
reported the airline's frequent flyer scheme, Eurobonus, is up for sale.
Pilots at SAS's Norwegian unit Wideroe have said they would like to buy that airline if SAS is willing.
SAS
announced at the end of last month it was in negotiations with
creditors to extend financing and that it was planning sweeping changes
to cut costs.
Other airlines are also in trouble, with Air
France-KLM and Deutsche Lufthansa planning to shed jobs. British Airways
and Iberia parent IAG are expected to set a new restructuring plan for
Iberia.
But SAS also faces a hit from pension accounting changes,
meaning a pension shortfall could effectively wipe out its shareholder
equity when new rules come in November 2013.
Analysts believe the airline might have to raise more capital after share issues in both 2009 and 2010.
On Wednesday, sources told Reuters the Danish government was not discussing more cash for SAS. ($1 = 6.7040 Swedish crowns)
http://www.reuters.com
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