PARIS  The SAS Group announced an overhaul Tuesday, cutting about 40 percent of its work force and asking shareholders for more cash as it sought to ride out the global economic crisis.
The Scandinavian airline also posted a fourth-quarter net loss of 2.8 billion kronor, or $337 million, compared with a loss of 625 million kronor a year earlier. Revenue fell less than 1 percent, to 12.9 billion kronor.
SAS announced an overhaul under which it would ground 16 planes and retreat from unprofitable routes to focus on its core Scandinavian markets and on business travelers.
It is cutting about 3,000 jobs, which  combined with another 5,600 employees who are being let go through the divestment or outsourcing of operations  account for about 40 percent of its overall work force, Mats Loennqvist, the chief financial officer, said during a conference call.
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.