=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/04/10/f= inancial0928EDT0043.DTL ---------------------------------------------------------------------- Thursday, April 10, 2003 (AP) SAS to eliminate 4,000 jobs in bid to cut costs by 30 percent MATT MOORE, AP Business Writer (04-10) 06:28 PDT STOCKHOLM, Sweden (AP) -- SAS Group said Thursday it will cut 4,000 jobs, or nearly 13 percent of its work force, as the Scandinavian airline company seeks to counter declining passenger numbers and competition from low-cost, no-frills air carriers. SAS, the joint carrier of Sweden, Denmark and Norway, employs nearly 31,000 workers. The layoffs will affect pilots, cabin crew, ground staff, and workers in its ticket sales, technical services and ground operations, including catering and cleaning, in the three countries that own the company. Scandinavian Airlines Systems has been in negotiations with 39 separate employee unions about the cuts and said Thursday that 35 have agreed to the layoffs, wage freeze and more. Four unions representing the company's cabin workers haven't agreed, but talks are continuing, said SAS president and chief executive Joergen Lindegaard. "These measures are necessary for the group's ability to compete and will represent a healthy platform for future expansion," Lindegaard said. The layoffs would be complete by 2005, he added. "We have made several groundbreaking changes to old collective agreements and the unions have assumed a major responsibility for us now being able to continue our efforts to become a stronger company," said Lindegaard. SAS and several of its unions agreed to concessions that include a 2.5 percent reduction in pay for pilots and an increase in the number of hours they spend flying. The new round of job cuts is third since last year, when SAS said it wou= ld lay off 3,500 workers, followed by another 2,700. Shares of SAS were up 0.10 kronor (1 cent) to 35.10 kronor ($4.13) in afternoon trading on the Stockholm Stock Exchange. Like most airlines worldwide, SAS has seen its revenue and earnings fall because of an economic slowdown. That, coupled with the overall slowdown in air traffic after the Sept. 11 terror attacks, new fears amid the U.S.-led war in Iraq and the spreading SARS virus in Asia, has resulted in fewer passengers. On Monday, SAS said its March passenger traffic was down 4.5 from a year ago, with an average of six of every 10 seats occupied. In 2002, SAS, which also operates hotels and airline support businesses, lost 132 million kronor ($15.5 million) on revenue of 64.9 billion kronor ($7.6 billion). Scandinavian Airlines flies to more than 90 destinations worldwide from bases in Stockholm, Copenhagen and Oslo. On the Net: SAS: www.sas.se =20 ---------------------------------------------------------------------- Copyright 2003 AP