SAS Scandinavian Airlines has averted the imminent threat of bankruptcy after reaching an agreement with the final union opposing its cost-cutting plan.
The airline had previously announced that one of eight unions - Denmark's cabin crew union, CAU - was withholding its support for the 4XNG restructuring plan ahead of an 18 November deadline.
An earlier agreement had been reached with the airline's banks and shareholders to extend its SKr3.1 billion ($460 million) credit facility, but the deal was contingent on SAS securing the backing of all eight unions.
SAS Group says that following the union agreement, its credit facility will now be increased to SKr3.5 billion with the term of the financing running through to 31 March 2015.
The Scandinavian carrier adds that the agreement is subject to final parliamentary sanction and must also receive the approval of one third of the Danish Pilot Union's members, who will be balloted in the coming days.
4XNG is targeting annual savings of approximately SKr3 billion through a raft of measures including renegotiating union contracts and outsourcing non-core functions.