SAS And Danish Union Agree Savings Deal

January 12, 2009

Scandinavian airline SAS and its Danish Cabin Attendants Union (CAU) said on Monday they had reached an agreement on cost cuts for the troubled airline after months of negotiations.

CAU said in a statement that a breakthrough was reached on Sunday evening concerning savings but that the particulars of the deal would be released when "the final details are in place".

SAS spokeswoman Elisabeth Mazini confirmed the airline and the union had reached an agreement, but said specific issues remained to be resolved before the parties would divulge details of the deal.

SAS, half-owned by Sweden, Norway and Denmark, regularly negotiates with dozens of unions, but the Danish flight attendants have gone on strike several times in recent years over what they say are attempts to worsen their working conditions.

Loss-making SAS posted a 12.5 percent year-on-year fall in December passenger traffic on Monday and said it expected to cut capacity further this year.

Like other airlines, SAS has been forced in recent years to contend with overcapacity and competition from budget rivals.

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