Within a ten-year period, 900 SAS pilots will be retired and replaced with younger talents. The generational shift could result in cost savings of up to half a billion kronor, writes Dagens Næringsliv.
SAS's second-quarter report was heavily influenced by the pilot strike at the end of April and beginning of May, with a negative impact of SEK 650 million. The company has also been accused of incurring far too many costs up front with the agreement that ultimately resolved the issues and put an end to the strike. The company's CEO Rickard Gustafson commented on the agreement in connection with the report on Tuesday morning.
”"It is a three-year agreement that gives us stability in our continued important transition work. I can only state that we have the agreement, we have calculated it and we know that it costs 5.4 percent over three years, net."”
Going forward, SAS will save money by becoming more efficient and digital. But the company, which currently employs 1,500 pilots, will also replace a large part of its pilot cadre over the next ten years.
According to Dagens Næringsliv, between 75-100 pilots will be retired annually over the next decade. The senior, expensive pilots will be replaced by younger pilots with lower salaries, and according to DN, SAS management expects that between 300 and 500 million can be saved this way. Although the company does not want to comment on the figures officially, Rickard Gustafson says:
”"When a senior leaves, we bring in a younger pilot who starts at a lower salary. That's how it is. It will have a significant effect on cost developments going forward," the SAS CEO tells the newspaper.
A large part of the effect will also come in the next 5 years. But Rickard Gustafson does not want to comment on exactly how big it will be.
”"I'm cautious about giving signals or speculating. It will have a positive effect, but we will be recruiting a lot of pilots and we don't know what pilots will cost many years in the future. We'll see how the market develops."”
He adds that the intended savings due to the generational shift are not included in SAS's calculations that the pilot agreement will cost 5.4 percent over the next three years.
”It's not included in the calculations,” says Rickard Gustafson.
