Category Archives: SAS Group

SAS to establish a new airline (AOC) in Ireland with bases in London and Spain

Delivered on November 30, 2016

SAS issued this statement:

SAS’s strategy is to focus on those customers who travel frequently to, from and within Scandinavia. SAS continuously develops its offering and network to meet this customer group’s needs. The air travel market in Europe is experiencing intense price pressure and rising demand for leisure travel. To secure the company’s long-term competitiveness and to take an active role in the growing leisure market, SAS is now taking a further step to reduce the cost differential to newly established competitors.

If SAS is to secure the long-term profitability of key traffic flows and actively participate in the growing leisure market, SAS must have the same preconditions as other market participants. Therefore, SAS has decided to establish a new AOC in Ireland with operational bases in London and Spain. The aim is for the new operations to be up and running from winter 2017/2018, providing a smaller number of departures as a complement to SAS’s existing production.

“In line with SAS’s strategy of focusing on those customers who travel frequently to, from and within Scandinavia, the majority of SAS’s airline operations will continue to be based in Scandinavia moving forward. The establishment of new bases means we can complement our Scandinavian production and, in time, build an even broader network with a superior schedule to the benefit of our customers,” says Rickard Gustafson, SAS President and CEO.

The aircraft based in London and Spain will have the same customer offering and appearance as other airline operations at SAS and with corresponding requirements in terms of safety and standards.

At the start, smaller start-up costs for the new AOC and new bases are expected to impact earnings. Initially, the financial effects from operations at these bases will be small, but will gradually increase as operations grow.

In parallel with establishing the new AOC, SAS has planned further structural measures for its operations, in line with those announced in the 2015/2016 year-end report.

Copyright Photo: Scandinavian Airlines-SAS Airbus A320-251N WL LN-RGN (msn 7341) PMI (Javier Rodriguez). Image: 936438.

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SAS posts a wider fiscal first quarter net loss

Scandinavian Airlines-SAS (SAS Group) (Stockholm posted a wider fiscal first quarter (through January 31, 2015) net loss of SEK 640 million ($73.7 million), a significant increase from its SEK 112 million ($12.9 million) reported in the same quarter a year ago.

Read the full report: CLICK HERE

Copyright Photo: SPA/AirlinersGallery.com. SAS has been selling some of its valuable London Heathrow (LHR) slots to raise capital in the current crunch. As a result, SAS is using larger aircraft into LHR. Boeing 737-883 LN-RRK (msn 32278) completes the final approach to the runway at LHR.

SAS aircraft slide show: AG Airline Slide Show

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SAS Group slips back into the red for its fiscal year

SAS Group (Scandinavian Airlines-SAS) (Stockholm) at its annual meeting discussed its financial results for its fiscal year 2013-2014 and also issued its annual report. The group fell back into a net loss of 719 million SEK ($88.4 million) for the year.

The group is coming under continued pressure from lower cost carriers in its markets (especially from Norwegian Air Shuttle) and also from the major European carriers, such as British Airways-Iberia, Lufthansa and Air France-KLM, shifting its European operations to its lower cost subsidiaries such as Vueling Airlines, Germanwings, Transavia Airlines and Hop!

SAS Group’s share of the Scandinavian market:

SAS share of the Scandinavian market

The group summarized its fiscal year:

“The results for the 2013/2014 fiscal year reflect a year characterized by substantial overcapacity and pressure on yield and unit revenue, and in which market conditions stabilized slightly toward the end of the year.”

The group also issued this outlook for 2015:

“SAS is continuing the intensive efforts to strengthen competitiveness. The potential exists for SAS to post a positive EBT before tax and nonrecurring items in the 2014/2015 fiscal year. This is provided that the economy does not weaken, that the trend continues in terms of reduced capacity and lower jet fuel prices, is maintained, that exchange rates are not subject to further deterioration and that no unexpected events occur.”

Fleet streamling:

In the 2013/2014 fiscal year, SAS phased in one long-haul aircraft and five medium-haul aircraft with modern cabins, in parallel with phasing out the last two Boeing 737 Classics. SAS also returned 11 MD-80s and seven Boeing 737 Classics that were taken out of service in the 2013 calendar year. With the phasing out of the MD-80 fleet and Boeing 737 Classics, SAS achieved an in-service aircraft fleet comprising only Next Generation aircraft in 2013/2014. SAS now has only one type of medium-haul aircraft per base, which provides a more stable and more efficient operational and technical plat- form. In addition, SAS plans to further streamline regional aircraft operations by phasing out Boeing 717s in 2015. SAS intends to transfer the CRJ900s to Cimber.

In addition, SAS has placed orders for four Airbus A330Es and eight Airbus A350s with delivery from 2015 to 2021, as well as 30 Airbus A320neo with delivery from 2016 to 2019. The first long-haul aircraft are expected to be in-service in autumn 2015. The introduction of long and medium-haul aircraft means SAS will be able to offer fre- quent travelers a world-class customer experience in parallel with lowering fuel and maintenance costs.

SAS Fleet Plans 2015

SAS Group’s strategy:

SAS Group Strategy

Read the full yearly financial report: CLICK HERE

Copyright Photo: SPA/AirlinersGallery.com. The SAS Group still operates both the Airbus A320 and Boeing 737 Next-Generation family of aircraft in a very mixed short haul fleet. With the new A320neo aircraft being added the Boeing 737 fleet will be gradually reduced. Airbus A320-232 OY-KAP (msn 3086) arrives in London (Heathrow).

SAS aircraft slide show:

SAS Group to phase out the remaining five Blue1 Boeing 717s in 2015, reports a full-year net loss of $92.4 million

Scandinavian Airlines-SAS (Stockholm) issued its year-end financial report for the period ending on October 30, 2014. The company continues to reduce its losses. The Group report a SEK (Swedish Krona) 719 million ($92.4 million) full-year net loss.

The comments by the CEO:

“SAS has delivered the promised efficiency measures, with declining unit costs as a consequence. In parallel, passenger growth was strong and the load factor posted a year-on-year improvement for the eighth successive month. However, earnings were impacted by intense com- petition and strong price pressure. This trend is expected to continue. External production models, proprietary low cost carriers and the use of staffing agencies are increasingly becoming the established indus- try norm and are changing competitive conditions for European avia- tion from the ground up.

To meet these challenges and strengthen competitiveness, we are implementing additional long-term cost-saving measures that spans the entire business and together generates an earnings impact of SEK 2.1 billion with full effect in 2017. Measures include our continued opti- mization of production and streamlining the aircraft fleet. On December 8, 2014, the Danish airline Cimber was acquired as part of this strategy and SAS intends to transfer regional CRJ900 production to Cimber in 2015. We are also enhancing our offering to our frequent travelers. For example, in 2015, the first of the new Airbus A330 Enhanced long-haul aircraft will be delivered to SAS and, in Septem- ber, a new direct route from Stockholm to Asia will be opened.”

Rickard Gustafson, SAS President and CEO.

As part of its cost reduction plan, SAS stated the following in its financial report about Blue1 (Helsinki):

“During the year, SAS has reduced capacity at Blue1 by about 40% as a result of the decision to divest four Boeing 717s. The five remaining Boeing 717s will be phased out in 2015. As a consequence, the SAS aircraft fleet will only comprise four aircraft types compared with nine types in 2012. SAS has also transformed Blue1 into a competitive production company and future production is currently being evaluated.”

Read the full report: CLICK HERE

Top Copyright Photo: SPA/AirlinersGallery.com. SAS’ Boeing 737-7BX SE-RER (msn 30736) arrives in London (Heathrow).

SAS aircraft slide show: AG Slide Show

Bottom Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 717-2K9 OH-BLO (msn 55056) taxies from the gate at Amsterdam.

Blue1 aircraft slide show:

SAS introduces a new “We Are Travelers” advertising campaign

Scandinavian Airlines-SAS (Stockholm) has introduced a new advertising campaign called “We Are Travelers”. The airline issued this statement and video:

SAS We Are Travelers logo-1

SAS has launched a new marketing concept “We Are Travelers”. This concept reinforces the idea of travel as part of our way of life and it also
celebrates the joy and anticipation we feel before a flight.

“Travel is a way of life for many Scandinavians; we love to travel and we do it a lot. It is an important part of who we are. Here at SAS, we are very familiar with this lifestyle, because it is our way of life too,” says Stefan Hedelius, Vice President Brand & Marketing at SAS.

“We Are Travelers” is a long-term concept that reflects the fact that SAS is the obvious choice for frequent travelers in Scandinavia. The concept is based on a deep understanding of the positive emotions associated with flying and how we at SAS can enhance the joy of travel, as well as the fact that people who travel a lot have a greater need for smooth and efficient travel.

“Even those who travel frequently see flying as being so much more than just transportation. It is about taking a break from everyday life and about the anticipation of going somewhere, whether you are travelling on business or looking for new experiences on vacation. We travel to be part of the wider world, to feel important and needed, and to grow as human beings,” says Stefan Hedelius.

SAS We Are Travelers logo

The insight into our way of life and the emotions attached to travel is the result of our extensive long-term efforts to listen to our frequent travelers in focus groups and through broader customer surveys. We want to make life easier
for frequent travelers in Scandinavia and the best way to do that is by listening to them.

Initial campaign presents travel profiles – of customers and employees

Using portraits of real customers and employees, SAS wants to show that there are many different kinds of travelers, but they all have something in common – they love to travel and they do so often.

SAS Thank You

Our new concept is being launched through a campaign – via SAS’s own channels, on TV, in print, online and outdoor advertising – in Sweden, Norway and Denmark. The campaign starts with an emotional film that pays tribute to aviation and all of us who love to travel.

During the fall, SAS will be releasing several shorter films featuring SAS crew and customers, all chosen because they love to travel, they travel a lot and because they are interesting people.

Top Copyright Photo: Stefan Sjogren/AirlinersGallery.com (all others by SAS). Scandinavian Airlines’ Airbus A320-232 OY-KAN (msn 2958) completes its final approach to the runway at the Stockholm (Arlanda) hub.

Scandinavian Airlines-SAS: AG Slide Show

Video: SAS:

SAS Group reduces its quarterly loss to $17.6 million

SAS Group (Scandinavian Airlines-SAS) (Stockholm) has reported a net loss of SEK 112 million ($17.6 million) for the quarter ending on January 31, 2014.

Read the full report: CLICK HERE

Copyright Photo: Rolf Wallner/AirlinersGallery.com. Airbus A319-132 OY-KBO (msn 2850) taxies at Zurich in the 1952 retrojet livery.

Scandinavian Airlines-SAS: AG Slide Show

 

SAS Group posts its first full-year net profit since 2007

SAS Group (Scandinavian Airlines-SAS) (Stockholm) after fighting to stay out of bankruptcy, has posted its first full year net profit since 2007.

After making massive cuts to positions and salaries, the company reported a net profit of $27.3 million for its fiscal year ending on October 31. The company still remains a high cost airline and it expects weaker conditions to continue.

Read the full report: CLICK HERE

Read the analysis from the WSJ: CLICK HERE

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Scandinavian Airlines’ Boeing 737-883 LN-RCY (msn 28324) in the special “Disney Planes – See the Movie” motif arrives at the Stockholm (Arlanda) hub.

Scandinavian Airlines-SAS: AG Slide Show