Nearly 9,000 employees will be adversely affected by the Scandinavian carrier's restructuring plan
Scandinavian Airlines reported on Tuesday that it was preparing to fire 3000 of its employees in light of its 6.3 billion Swedish kroner deficit for 2008.
Through a press release the airline presented its new 'Core SAS' plan - a restructuring that will result in the lay-off of 3,000 workers. Another 5,600 SAS employees are expected to be forced out of the company due to previous business transactions, including Monday's sale of affiliate airline Spanair.
The plan aims to save SAS around 2.7 billion Swedish kroner over the next two years. In addition, collective bargaining agreement negotiations were expected to lead to annual savings of approximately 1.3 billion Swedish kroner.
'It is likely that 2008 will go down as one of the most challenging and turbulent years in airline history,' commented the chief executive of SAS, Mats Jansson.
'To address one of the most severe economic declines we have ever seen, in addition to our internal challenges, a renewed strategic approach was needed. The principal feature of Core SAS is a renewed focus on what we do best: serving our Nordic home market and our core business travellers.' said Jansson.
SAS reported a 2008 fourth quarter loss of 2.7 billion Swedish kroner - its fifth straight quarterly deficit.
SAS Boeing 737-600 LN-RPA lands at Heathrow in 2004 
Sweden-based airline Scandinavian Airlines System (SAS) said it will reduce payrolls by 8,600 jobs as part of its "Core SAS" restructuring plan.

The airline will cut 3,000 staff directly and eliminate 5,600 by divesting business ventures, reducing the workforce by 40% to 14,000. The restructuring comes after SAS posted losses of 6.32 billion Swedish krona in 2008. The company is also to sell airBaltic and Spanair and its stakes in Air Greenland, BMI, Estonian Air, Skyways Express, Spirit Airlines and Trust. Spanair is to be sold for €1. The company intends to switch to concentrating on its core Nordic market.

SAS is to seek 6 billion krona from shareholders, while the government of Denmark is to invest 600 million Danish kroner in the company. Currently, Denmark owns 14.3% of SAS, Sweden has 21.4% and Norway 14.3%. The rest is publicly traded.

The airline was founded in 1946 when the state airlines of Denmark, Sweden and Norway merged their longhaul services.