SAS AB has reached agreements with two additional lessors, Air Lease Corporation and Jackson Square Aviation, representing 13 aircraft in the aggregate, to amend the terms of existing aircraft and equipment lease agreements. With these agreements, SAS concludes its lessor negotiations as part of the chapter 11 process.
In total, SAS has reached agreements with 15 lessors, representing 59 aircraft. Through the amended lease agreements, SAS expects to achieve the targeted annual cost savings of at least SEK 1.0 billion in reduced aircraft lease expenses and annual cash flow items relating to aircraft financing. This 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 new 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 being confirmed and becoming effective.
As part of SAS’ comprehensive business transformation plan, SAS FORWARD, SAS set a target for annual cost reductions of SEK 7.5 billion by fiscal year 2026, as compared to the annual cost base for fiscal year 2019. An important part of the targeted cost reductions, at least SEK 1.0 billion, are expected to be achieved in reduced aircraft lease expenses and annual cash flow items relating to aircraft financing. (£1.00 = SEK 12.70 at time of publication)
