- 8 of 8 new union agreements have been signed November 19 - The Danish Pilot Union Agreement is conditional upon approval by one third of its members.
4Excellence NG is targeting approximately 3 bn SEK of annual improvement from cost reductions and organizational restructuring and approximately 3 bn SEK increased liquidity from asset sales
~ New 3.5 bn SEK Revolving Credit Facility from Banks and Core Shareholders to secure financial preparedness conditional on final parliamentary approvals and approval of the Danish Pilot Union Agreement from one third of the members of the Danish Pilot Union
On November 12 the Board of SAS approved the 4 Excellence Next Generation (4XNG) plan to address
the issues facing SAS. The 4XNG plan will improve EBT by approximately 3 bn SEK on an annualized basis and improve the overall cost flexibility through:
· New union agreements for personnel
· Centralization of administration functions
· Reduction of compensation to market levels
· New pension terms
· Outsourcing of Call Centers and Ground Handling
SAS also communicated that it has reached a conditional agreement to increase its existing 3.1 bn SEK revolving credit facility to 3.5 bn SEK and extend the term of the facility to 31 March 2015.
This new revolving credit facility is being provided by seven current lenders and SAS' core shareholders (The Kingdom of Denmark, the Swedish State, the Kingdom of Norway and KAW) on equal terms. The availability of this new revolving credit facility is subject to final documentation, parliamentary approval where required, and it is conditional on signed union agreements that are a central and integral part of the 4XNG plan.
The condition to have 8 union agreements signed have been fulfilled on November 19, 2012, subject to a ballot approval by one third of the members of the Danish Pilot Union to be finalized in the next few days. The availability of the new revolving credit facility is still subject to parliamentary approvals (where required).
SAS Group Investor Relations
SAS is publishing this information in accordance with the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act and corresponding Danish and Norwegian legislation. This information was submitted for publication on November 19, 2012 at 1525CET.