P.M. BRIEFING : SAS to Trim Its Staff by 3,500
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STOCKHOLM — Scandinavian Airline System will reduce its staff by about 3,500 over the next two years in order to cut costs by $550 million, the airline said today.
The airline said its financial crisis stemmed from increasing oil prices and declining numbers of passengers in the light of terrorist threats emanating from the Persian Gulf War.
SAS has canceled all departures to the Middle East and has seen a 20% decline in revenues on its European routes since December.
SAS owns about 16% of the equity of Houston-based Continental Airlines, which is operating in Chapter 11 bankruptcy. SAS is owned jointly by the governments of Sweden, Denmark and Norway and by private investors.
Denmark’s Berlingske Tidende newspaper said today that SAS has lost a further $140 million on a new, advanced computer reservations system.
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