SAS AB has reached agreements with ten lessors, representing in aggregate 36 aircraft, to amend the terms of existing aircraft and equipment lease agreements. The agreements constitute an important step in reconfiguring the fleet and achieving an SEK 7.5 billion in annual cost savings under the SAS FORWARD plan. The 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.
The amended lease agreements have been entered into with ten lessors – AerCap Holdings N.V., Aergo Capital Limited, Aircastle Limited, ALAFCO Aviation Lease and Finance Company, Avolon Aerospace Leasing Limited, CDB Aviation, Dubai Aerospace Enterprise (DAE) Ltd., ICBC Aviation Leasing Co., Ltd., ORIX Aviation Systems Limited and SDH Wings International Leasing Limited – representing and relate to three wide-body and 33 narrow-body aircraft, as well as certain equipment related thereto.
Through the amended lease agreements, SAS is well on track in achieving the targeted annual cost savings of at least SEK 850 million to SEK 1.0 billion in reduced aircraft lease and capital costs, which constitutes an important step in achieving the SEK 7.5 billion in annual cost savings by fiscal year 2026 under the SAS FORWARD plan. The company intends to continue negotiations with certain other of its lessors to achieve further amendments to existing lease agreements (£1.00 = SEK 12.44 at time of publication).
