Category Archives: Scandinavian Airlines-SAS

SAS announces its first Airbus A350-900 flights and features

Scandinavian Airlines-SAS has made this announcement:

From January 2020, travelers can look forward to exploring the world in the most fuel-efficient and comfortable long haul aircraft, the Airbus A350-900. The new aircraft is a key investment and part of the extensive renewal of the SAS fleet, tailored to reduce emissions, and in line with the Scandinavian outlook on travel.

SAS travelers can soon experience the world’s most modern and fuel-efficient long-haul aircraft.

On January 28, 2020, the first of eight new SAS Airbus A350 will officially enter into long-haul service between Copenhagen and Chicago, one of the most popular SAS routes. The A350 will be based at the SAS hub at Copenhagen Airport and will operate on seven routes during the first year, including Chicago, Beijing, New York, Tokyo, Shanghai, Hong Kong and San Francisco.

Image: Airbus

The aircraft is an entirely new type for SAS and it enables a more competitive future and more sustainable way of flying in terms of reduced emissions. On each flight, 300 travelers (40 SAS Business / 32 SAS Plus / 228 SAS Go) and SAS crew can look forward to an unmatched cabin environment created by a combination of the quietest twin-aisle cabin, optimized cabin altitude, more fresh air, and advanced control of temperature and humidity.

In addition, to further enhance the experience on board, the A350 will be equipped with unique SAS features, carefully developed from feedback given from travelers. SAS will announce these new features during 2019.

The market’s most advanced fleet

The A350 is a milestone in the extensive renewal of the SAS fleet which will consist of the market’s most advanced and fuel-efficient aircraft. The A350 lowers CO2 emissions by approximately 30% and reduces external noise footprint by up to 40% compared to previous generation aircraft. In total, as a part the modernization of the short and long-haul fleet, SAS will take delivery of new Airbus A320neo (80), Airbus A330 Enhanced (5), Airbus A350 (8), and Airbus A321LR (3) aircraft before the end of 2023. Combined with the upgrade of the cabin interiors, the SAS fleet is shaped for the future of traveling and a key enabler to achieve SAS’ ambitious, but tangible, target by 2030 to reduce total carbon emissions by at least 25%, an ambition exceeding the targets set by IATA.

SAS Airbus A350 The Airbus A350 is a new mid-size long-range aircraft composed by the world’s most modern technology and aerodynamic features.  The first SAS Airbus A350 will be named ‘SE-RSA Ingegerd Viking’. By end of 2019, the aircraft will be delivered from the Airbus factory in Toulouse.  Following delivery, it will fly training flights in Scandinavia during December and January to educate pilots and crew.

Facts:
• Number of aircraft: 8
• Number of seats: 300 (40 SAS Business / 32 SAS Plus / 228 SAS Go)
• Max. takeoff weight: 268 metric tons
• Max. load: 50 tons
• Length: 66.9 m
• Wingspan: 64.8 m
• Cruising speed: 910kmph/570 mph
• Range: 13 800 km
• Fuel consumption: 0.028 liters/seat km
• Engine: RR Trent XWB

Advertisements

SAS to eliminate tax-free sales onboard to reduce weight

Scandinavian Airlines-SAS has made this announcement:

Every step on the way to sustainable travel is important. From this autumn, tax-free sales will therefore cease on SAS flights. This will reduce the overall weight of our aircraft, which in turn will save fuel and cut emissions.

SAS’s efforts to improve the sustainability of its operations are split into two areas and involve a series of initiatives in each area: improved fuel efficiency, alternative fuels and innovation, sustainable products and services. As part of these efforts, a number of changes will be introduced onboard SAS flights over the coming months in order to reduce the weight of our aircraft.

Photo: SAS.

Tax-free sales have long been a popular service onboard our flights amongst passengers who have used it, but our passengers’ buying behaviour has changed and sustainability has become more important than ever before – for both our passengers and SAS. Withdrawing tax-free sales will reduce the overall weight of the aircraft, which in turn will reduce fuel consumption and emissions. Instead, SAS will develop solutions to offer passengers more modern ways of buying and receiving goods in connection with their journey.

“SAS is aiming to cut emissions by at least 25 percent by 2030. Every step on the way to sustainable travel is important. Every initiative to reduce weight and thereby cut fuel consumption helps,” says Karl Sandlund of EVP Commercial.

FACTBOX
Some of the sustainability initiatives currently being carried out by SAS:

• New, fuel-efficient aircraft with reduced emissions

• Weight reductions to existing aircraft to reduce fuel consumption

• Major initiative to improve access to high-quality biofuel

• Unique partnership with Airbus to develop electric and hybrid aircraft

SAS divests its shareholding in Air Greenland to the Government of Greenland

Scandinavian Airlines-SAS has made this announcement:

SAS has divested its 37.5% ownership in Air Greenland A/S to the Government of Greenland. The transaction is a result of several years of discussions and negotiations, ending an era of ownership which dates back over 50 years.

Under the agreement, which was closed today, the Government of Greenland will pay DKK277 million in cash for SAS’ 37.5% shareholding in the Greenland based airline group.

The transaction price is slightly above the book value, resulting in a marginal capital gain for SAS.

SAS would like to thank Air Greenland and its other shareholders – the Government of Greenland and the Danish State – for the good cooperation over the years and wish the airline all the best for the future.

Greenland’s national airline Grønlandsfly was founded in 1960. The company changed its name to Air Greenland in 2002 and has undergone rapid development during the last 50 years: From seaplanes to jet planes; and from helicopter services to scheduled services with fixed-wing aircraft. Then, as now, Air Greenland operates in Arctic airspace, which presents a unique range of challenges.

All above photos by Air Greenland.

Air Greenland Airbus A330-223 OY-GRN (msn 230) HAM (Gerd Beilfuss). Image: 928525.

Above Copyright Photo: Air Greenland Airbus A330-223 OY-GRN (msn 230) HAM (Gerd Beilfuss). Image: 928525.

Air Greenland aircraft slide show:

Video:

Route Map:

SAS’ fiscal second quarter impacted by the pilot’s strike

Scandinavian Airlines-SAS issued this report on its fiscal second quarter:

COMMENTS BY THE CEO

The pilot strike at the end of the second quarter added to the challenges already faced by SAS from a competitive market, increasing jet fuel price and a weakening Swedish krona. In addition, we see decreased demand for domestic travel especially in Sweden. These factors highlight the importance of continued strong focus on improving our efficiency, flexibility and sustainability efforts.

The strike between April 26 and May 2, 2019 resulted in some 4,000 canceled flights affecting more than 370,000 passengers. I apologize to all of our customers affected by the traffic disruptions during this extraordinary event. The total impact on income before tax of the strike is estimated at MSEK 650, of which MSEK 430 relate to the last five days of the second quarter.

Earnings before tax came in at MSEK -1,216, a decrease of MSEK 728 compared to same quarter last year. The result was negatively impacted by the strike, increasing fuel price and a continued weakening of the Swedish krona. Excluding these effects, the result would have been comparable to the same quarter last year, which was one of the strongest second quarter in SAS’ modern history.

Even though the result is far from satisfying, we are encouraged by certain underlying trends. The investments we have made in our customer offering are paying off with higher revenue per passenger and an increase in ancillary revenues. Furthermore, we are maintaining our market share in a market characterized by increased competition and lower demand on Swedish domestic routes. We also continue to rank high in terms of punctuality and have noted increased interest in our premium offerings (Plus and Business). Our efforts are also reflected in enhanced customer satisfaction ratings across all our production platforms.

However, the combination of soft economic indicators, increasing jet fuel price and the weak Swedish krona outweigh the positive underlying momentum. Therefore, we need to increase the pace of transformation to adapt our company to the current market conditions and secure future profitability.

NEW PILOT AGREEMENT PROVIDING STABILITY

The new three-year collective bargaining agreements with the pilot unions in Denmark, Norway and Sweden give us the stability and time to continue our transformation efforts. In total, the net pilot cost across Scandinavia increases with approximately 5.4% over the three-year period and includes productivity improvements that to some extent mitigate increased compensation and other costs.

Although I would have preferred to avoid the disruption in our operations, I am pleased to see that proper planning, digital investments and engaged employees made a huge difference during the strike. We mobilized and trained a team of nearly 400 administrative colleagues that answered queries and helped our customers with rebooking.

As a result of the effective communication with our customers, we avoided a situation in which a large number of passengers would have showed up and gotten stranded at the airport. However, in order to help the customers who did arrive at the airport, we mobilized nearly 1,100 of our staff equipped with over 300 tablets to help customers. Walking the floors in the terminals and leveraging our newly launched disruption module, we were able handle large numbers of rebookings efficiently.

TOWARDS MORE SUSTAINABLE AIR TRAVEL

We are continuing to push for more sustainable air travel. As proof that we are moving in the right direction, SAS was recently ranked the most sustainable brand within aviation in Sweden for the 9thconsecutive year, according to Sustainable Brand Index. According to the same survey, SAS was also rated the most sustainable aviation brand in Denmark.

Looking ahead we strive to stimulate large scale biofuel production and engage in the development of the next generation aircraft. Both activities aim to significantly reduce the carbon footprint caused by aviation.

During the quarter, SAS together with Swedavia and the research institute RISE launched a common path towards increased production of biofuels. Current global production is insufficient. Therefore, it is essential that large scale production of biofuels is established for SAS to reach its goal of using biofuel equivalent to the total consumption of all domestic SAS flights by 2030.

SAS and Airbus recently signed a memorandum of understanding on a joint research partnership for future aircraft – partially or fully electrically powered. The purpose with the partnership is to increase know-how in terms of operations, infrastructure and challenges linked to the introduction of hybrid and electric aircraft in commercial traffic. This advances our ambitious sustainability work even further, and I am proud that Airbus has chosen SAS as its partner for this important project aiming for zero emission aircraft.

Until technology has evolved and large-scale biofuel production is in place, we continue our efforts within the technology available today to reduce our carbon emissions. This includes continued investments in new aircraft that combine efficiency gains with sustainability gains, thereby reducing the fuel consumption and emissions by 15-18 percent.

In order to address the CO2 emissions that we still cannot eliminate, we have introduced carbon offsetting for all our EuroBonus members in February this year. As of the end of this quarter, we had compensated for over 3.4 million journeys with SAS, representing 44% of passenger-related CO2 emissions.

OUTLOOK

Since our Q1 report, several developments have negatively impacted our earnings. These include the pilot strike, as well as an increased jet fuel price and continued depreciation of the Swedish krona against the US dollar and the euro.

Accordingly, it will be challenging to reach a positive result before tax and items affecting comparability, as stated in our previous outlook. See page 5 for further detail.

Our liquidity remains strong, but in the light of the challenges we are facing we cannot afford to rest on our laurels. Instead, SAS will continue with its strong focus on strategy execution and transformation efforts to be prepared for the future.

Finally, I want to thank you for your interest in SAS and I look forward to welcome you onboard one of our daily 800 flights!

Stockholm May 28, 2019

Rickard Gustafson,
President and CEO

FEBRUARY 2019–APRIL 2019

  • Revenue: MSEK 10,187 (9,916)
  • Income before tax (EBT): MSEK -1,216 (-488)
  • Income before tax and items affecting comparability: MSEK -1,211 (-309)
  • Net income for the period: MSEK -933 (-349)
  • Earnings per common share SEK -2.44 (-1.0)
  • Income before tax negatively affected by strike MSEK -430
  • In the light of the strike and the macro development, the outlook is revised as it will be challenging to reach a positive result before tax and items affecting comparability in fiscal year 2019

SIGNIFICANT EVENTS DURING THE QUARTER

  • 2,700 flights cancelled and 270,000 passengers affected by the pilot strike
  • Convertible bond repaid at nominal value of MSEK 1,574
  • 44% of passenger-related CO2 emissions compensated during the quarter

NOVEMBER 2018–APRIL 2019

  • Revenue: MSEK 19,721 (18,894)
  • Income before tax (EBT): MSEK -1,792 (-773)
  • Income before tax and items affecting comparability: MSEK -1,935 (-694)
  • Net income for the period: MSEK -1,402 (-598)
  • Earnings per common share: SEK -3.69 (-1.88)

SAS and Airbus to research hybrid and electric aircraft

Scandinavian Airlines-SAS has made this announcement:

SAS and Airbus have signed a joint Memorandum of Understanding for hybrid and electric aircraft eco-system and infrastructure requirements research. This is a unique cooperation to establish the requirements for the next generation of sustainable aircraft. The project aims to gain an understanding of the introduction of hybrid-electric aircraft for large-scale commercial use.

The partnership involves a joint research project where SAS and Airbus will work together to build knowledge of the opportunities and challenges regarding operations and infrastructure linked to large scale introduction of hybrid and electric aircraft in commercial traffic.

“We are proud of our ambitious sustainability work and are now pleased that Airbus has chosen SAS to partner up with us for this future project. If this becomes a reality, it will revolutionize emissions”, says Rickard Gustafson, CEO, SAS.

SAS has for decades worked to reduce emissions and worked hard and focused towards a more sustainable flying. SAS’s goal is to reduce emissions by 25 per cent by 2030, mainly by modernizing the fleet and increasing the use of biofuels. We see electric aircraft as the next step beyond the current technology.

“We are delighted to be embarking on this partnership with SAS,” said Grazia Vittadini, Airbus Chief Technology Officer. “Leveraging our respective expertise to explore the potential of hybrid-electric propulsion opportunities in our aviation eco-system.”

The collaboration also includes an ambition to involve a renewable energy supplier to ensure genuine zero emissions operations.

SAS to open a new route to Luxembourg

Scandinavian Airlines-SAS (CityJet) Bombardier CRJ900 (CL-600-2D24) EI-FPW (msn 15443) ZRH (Rolf Wallner). Image: 945318.

SAS has made this announcement:

From early November, SAS will fly a new route from Stockholm (Arlanda) to Luxembourg. The route will operate three times a week with departures on Mondays, Wednesdays and Fridays. SAS is the only airline that offers a direct connection between Stockholm and one of the leading business destinations in Europe.

The new route from Stockholm Arlanda to Luxembourg will start on November 4, 2019.

The new route between Stockholm Arlanda and Luxembourg will be flown with 90-seat Bombardier CRJ900 aircraft.

In winter 2019/2020, SAS will also open new routes from Copenhagen to Turin, Italy, and a connection from Oslo to Kyiv in Ukraine. This winter, SAS will fly to 110 destinations from Norway, Sweden and Denmark. Many of these routes will be flown with the new Airbus A320neo, the most environment friendly aircraft on the market.

Photo: SAS.

Timetable for Arlanda – Luxembourg

Monday ARN-LUX 08.05-10.20 LUX-ARN 11.00-13.15
Wednesday & Friday ARN-LUX 10.55-13.10 LUX-ARN 13.50-16.05

Top Copyright Photo: Scandinavian Airlines-SAS (CityJet) Bombardier CRJ900 (CL-600-2D24) EI-FPW (msn 15443) ZRH (Rolf Wallner). Image: 945318.

SAS-CityJet aircraft slide show:

airBaltic to start codeshare flights with SAS

airBaltic has concluded a cooperation agreement, known as a codeshare agreement, with Scandinavian Airlines (SAS). The airBaltic and SAS partnership will offer convenient connections between Latvia, Scandinavia and beyond. 

airBaltic will put its code BT on flights connecting Riga and Alesund, Bergen, Stavanger, Tromso, Trondheim via such common gateways as Oslo and Copenhagen airport. SAS will place its flight code SK on direct flights from Stockholm Arlanda, Copenhagen and Oslo airports and vice versa, ensuring transportation between Scandinavian capitals and Riga, as well as connecting traffic from SAS’s whole network and Riga via its three hubs.

airBaltic serves over 70 destinations from Riga, Tallinn and Vilnius, offering the largest variety of destinations and convenient connections via Riga to its network spanning Europe, Scandinavia, the CIS and the Middle East. In summer season 2019, airBaltic has launched new destinations from Riga to Dublin, Stuttgart and Lviv as well as to Kos and Menorca.