(MENAFN) Scandinavian airlines' (SAS) CEO, Rickard Gustafson, announced that as part of a cost-cutting plan, the company will lay off 800 workers and reduce salaries and pensions, reported AP.
Gustafson hopes the measures to slash costs of the loss-making carrier by USD440 million on annual basis.
He added that the airline, the largest in Scandinavia, would get USD518 million in credit lines from the governments of Sweden, Norway and Denmark and from banks, in case it reaches agreements on those savings cuts with labor unions.
Furthermore, the airline wants to raise nearly USD444 million through selling its regional airline Wideroe, ground-handling services in addition to other assets.
The CEO noted that the total number of SAS employees would decline to 9,000 from nearly 15,000 as a result of the restructuring plans, including the sale of Wideroe.
It is worth noting that Sweden has 21.4-percent stake in SAS, whereas each of Denmark and Norway has 14.3-percent stake.