Travelers who have their flights canceled due to the SAS strike have the right to get their money back.
In addition, they are entitled to compensation according to the EU Air Passenger Regulation, with up to 600 euros, approximately 6,000 kronor.
Then it looks normal.
But the fact that SAS is now under US bankruptcy protection, in a so-called chapter 11 procedure, could affect future payments.
The Swedish Consumer Agency refers to SAS
Hevi Aziz, a lawyer at the Swedish Consumer Agency who specifically works with travel issues, says that the authority does not know what applies because the Swedish Consumer Agency does not have knowledge of American competition law.
– We therefore refer to SAS. They have stated that customers’ travel should not be affected by the application for bankruptcy protection, so we refer to the company about what applies, she says and continues:
– What I can say, however, is that since it is not a reconstruction in Sweden but a bankruptcy protection in the US, it is not covered by the Air Passenger Ordinance in Europe. It does not apply in this situation, the ordinary rights do not apply.
TT: So it is put out of play?
– Yes, at the moment it is not possible to apply the Air Passenger Regulation in this situation. But we refer to SAS’s statements when it comes to compensation and indemnity.
Marie Karlsson Tuula, professor of civil law at Karlstad University who has researched Swedish and American insolvency law, also says that American bankruptcy protection most likely trumps EU law. That according to “lex specialis” which means that the more specific law applies. But the law is complicated.
– Who gets paid can then also depend on when the claim came in, it may be that those who came in before the chapter 11 process find it more difficult to get paid than those who come in afterwards. Then it may be that SAS pays anyway, she says.
Debts can be written down
Marcus Isgren, Director General of the General Complaints Board (ARN), gives a partly different picture. Although he also thinks the situation is unclear.
– The EU regulation applies regardless of whether a company is covered by chapter 11, or corporate reorganization in Sweden or elsewhere, he says and continues:
– But just as happened with Norwegian and Bra this year, the right to receive money can be affected by the decisions within the procedure itself in connection with the reconstruction.
A composition may, for example, mean that all debts must be written down to 20 percent. Anyone who would then receive compensation of SEK 4,000 receives only 20 percent of it.
– What is affected is the consumer’s ability to get the full amount back, but the starting point is that the regulation applies. But nothing is certain before you have the money in the account.
For SAS, which is already in a tough financial position and which, according to CEO Anko van der Werff, loses up to SEK 130 million per day, the compensation can be another financial blow.
However, he tells TT that payments and compensations will be paid as usual.
– All compensation rules continue to apply during the chapter 11 procedure, he says.