From a pilot group perspective, yes, with the exception of the LHR based pilots who are contracted from CAE. There have not been any details about how the LHR pilots will be handled, so that is the big question mark right now. The LHR base has been stable in size since prior to the pandemic, so the thinking is that base is essentially frozen for now, with at least no growth. There were two main issues that SAS pilots were upset about, and rightfully so. First, that SAS Connect and SAS Link were being used to undercut the collective bargaining agreement, which they clearly were. The second was that despite the union agreement that furloughed SAS pilots were guaranteed jobs back at SAS, they were instead having to compete with non SAS pilots for jobs at Connect and Link, and under worse terms and conditions. So the strike, and the new agreement eliminates both of those issues, and guarantees jobs for the furloughed SAS pilots back within the SAS pilot group based upon their seniority. Laws in the Scandinavian countries prevent people already hired at SAS Connect and SAS Link from being terminated or downgraded, so even with lower seniority, those pilots are protected in their current seats. Bidding for any future openings or vacancies will based on systemwide seniority. But basically a newly hired direct entry A320 captain at SAS Connect is protected in his or her seat and base and is now a part of the SAS pilot seniority list and working under the terms of the new CBA.

Regarding full terms and conditions, the unions will put out all details next week so members can vote. But what has been divulged so far is that there is an across the board 5% pay cut for all pilots, but with increases in production allowed by the CBA, it can effectively be up to a 25% pay cut. It also introduces pretty severe restrictions on summer vacation. For the SAS Main pilots, this new CBA represents worse terms and conditions. For the pilots at SAS Connect and SAS Link, this generally represents an improvement in terms and conditions.

SAS has been in pretty significant trouble for several years now, hence the chapter 11 filing. Like many of the European legacy airlines, they existed for most of their history as monopolies, and developed a very bloated and top heavy corporate structure. SAS has been kind of a late comer to feeling the pressure from outside competition from other airlines, particularly the LCCs. But over the past decade, the competition within Scandinavia has increased dramatically. Norwegian has grown significantly in Oslo, Stockholm, and Copenhagen, and then its long haul experiment really hurt SAS. Although long haul is gone, Norwegian is still a sizable and formidable competitor for SAS within the European short haul market. Stockholm has been particularly difficult, with Ryanair expanding rapidly over the last few years, and Finnair setting up a secondary hub in Stockholm, even with long haul flights. Eurowings has also expanded rapidly in Stockholm and has launched a large recruitment campaign. So SAS needs a major overhaul if it is going to survive.