Tag Archives: SAS Group

SAS Group issues its Annual Report 2016/2017 including its fleet plans

Scandinavian Airlines-SAS (Ireland) Airbus A320-251N WL EI-SIA (msn 7897) LHR (SPA). Image: 940744.

SAS Group has issued its annual report:

Aircraft Fleet:

SAS has simplified its aircraft fleet considerably over the last few years; today, it has three aircraft types under SAS’s own traffic license. The aircraft fleet consists of Boeing 737 NGs, the Airbus A320 family and Airbus A330/A340s. In addition, SAS wet-leases 33 aircraft through strategic business partners.

As of October 31, 2017, SAS had aircraft orders for 18 Airbus A320neos and eight Airbus A350-900s for delivery up through 2021.

Of the remaining aircraft order for 18 Airbus A320neos, SAS has financed eight aircraft through sale and leaseback. In addition, SAS has begun financing the remaining ten Airbus A320neos and the eight Airbus A350s.

In January 2017, SAS decided to establish a new air operator certificate (AOC) in Ireland (see photo above). SAS also decided to establish bases in London and Malaga, where a total of nine Airbus A320neos are planned for deployment. The first AOC was granted in December 2017, and the first flight took place that same month from the base in London. The first flight from the base in Malaga is planned for the summer of 2018.

Read the full report: CLICK HERE

Top Copyright Photo (all others by SAS): Scandinavian Airlines-SAS (Ireland) Airbus A320-251N WL EI-SIA (msn 7897) LHR (SPA). Image: 940744.

SAS aircraft slide show:

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 reports its third quarter income drops 44% to $69.5 million

Scandinavian Airlines-SAS (SAS Group) (Stockholm) despite recent personnel cuts and cost saving measures reported its fiscal third quarter income (ending on July 31) dropped 44 percent to SEK (Swedish Krona) 496 million ($69.5 million).

The group blamed the decline on its challenging market conditions especially coming from Norwegian Air Shuttle. CEO Rickard Gustafson blamed Norwegian for flooding the market with more seats than the market can handle.

Read the full report: CLICK HERE

In other news, on Wednesday September 10, SAS moved in to the new Queen’s Terminal at London’s Heathrow Airport. The Queen’s Terminal, or Terminal 2, is the new home of all Star Alliance airlines that fly to Heathrow – in total 23 members.

SAS operates 21 departures and 21 arrivals at the terminal to and from the Scandinavian capitals of Stockholm, Oslo and Copenhagen
and the regional cities Gothenburg and Stavanger. SAS flight SK 500 was the first SAS scheduled flight to operate from Terminal 2.

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Boeing 737-883 LN-RPM (msn 30195) promoting the SAS Eurobonus program,  approaches runway 01R at Stockholm (Arlanda).

SAS: AG Slide Show
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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

SAS Group’s third quarter net profit rises to $128 million

SAS Group (Scandinavian Airlines-SAS) (Stockholm) reported its third quarter net profit rose to 844 million kroner ($128 million). Facing stiff competition from low-fare airlines, the SAS Group cut 800 jobs last year in order to reduce its costs. The SAS Group issued this financial statement for its third quarter:

SAS delivers positive result for the May-July 2013 quarter:

· Revenue: MSEK 11,593 (11,638)
· Traffic: up 5.6%
· Passenger revenue adjusted for currency: up 5.3%
· Income before tax and nonrecurring items: MSEK 973 (497)
· EBIT margin: 11.6% (9.0%)
· Income before tax: MSEK 1,120 (726)
· Net income for the period: MSEK 844 (534)
· Earnings per share: SEK 2.57 (1.62)
· Cash flow from operating activities: MSEK -276 (-187)

November 2012-July 2013

· Revenue: MSEK 31,123 (31,007)
· Traffic: up 3.8%
· Passenger revenue adjusted for currency: up 5.3%
· Income before tax and nonrecurring items: MSEK 229 (-788)
· EBIT margin: 2.2% (-1.3%)
· Income before tax: MSEK -9 (-2,694)
· Net income for the period: MSEK -174 (-2,436)
· Earnings per share: SEK -0.53 (-7.40)
· Cash flow from operating activities: MSEK 518 (299)

“It is gratifying that our robust and sweeping restructuring program is having the anticipated effect and SAS exits the third quarter strongly with a positive income before tax of MSEK 1,120.

We have made substantial progress in the implementation of our plan to improve our financial position. When the sale of Widerøe is concluded in September, we will have completed the sale of assets corresponding to about SEK 2.7 billion.

In parallel, during the quarter, we were able to increase traffic through a significant improvement in productivity. During the summer, 32 new routes were opened, which contributed to increased passenger revenue at the same time as operating expenses decreased. We have signed a letter of intent with Airbus regarding the renewal of the SAS Group’s long-haul fleet, which bolsters our long-term competitiveness.

Competition in European air traffic remains very intense. Consequently, our focus is on completing the entirely necessary transition to a lower and more flexible cost structure, in parallel with our continued aggressive investment in our customer offering. Our forecast of achieving positive earnings for the full-year remains firmly in place,”

Rickard Gustafson, SAS President and CEO.

Copyright Photo: Brian McDonough/AirlinersGallery.com. SAS has eight Airbus A350-900s on order with the first deliveries in 2018. The new type will replace the older Airbus A340-300s. A340-313X LN-RKG (msn 424) approaches the runway at Washington Dulles International Airport.

Scandinavian Airlines-SAS: AG Slide Show

The SAS Group receives approval to sell Wideröe

The SAS Group’s (Scandinavian Airlines-SAS) (Stockholm) sale of Wideröe Flyveselskap AS (Bodo and Oslo) has been approved by the Norwegian competition authority. The closing of the sale is expected to take place in September 2013.

The cost reductions and the divestments performed in accordance with the 4XNG plan will lead to an improvement in SAS financial position and liquidity.

According to the group, “In November 2012, SAS renegotiated its revolving credit facilityof MEUR 366 to an amortizing credit facility of MSEK 3,500, divided into two tranches with separate conditions for drawdown and with a maturity in March 31, 2015. Lenders are SAS four majority owners, including the Scandinavian states and a syndicate of seven merchant banks, all participating on the same terms.

In connection with the divestment of Wideröe, the amortizing credit facility has been re-negotiated and amended. The actions under the 4XNG plan have made it possible for SAS to reduce the facility to MSEK 2,000. The facility is divided into two tranches with separate conditions for drawdown, one with a maturity in June 1, 2014 one with a maturity in March 31, 2015. The facility remains undrawn.”

Copyright Photo: Ton Jochems/AirlinersGallery.com (please click on the photo for the full size view). All others by Wideroe. Bombardier DHC-8-103 LN-WIA (msn 359) and crew await the next group of passengers at Trondheim, Norway.

Wideroe: AG Slide Show

Video: A typical approach and landing at Hammerfest, in northern Norway:

Copyright Photos: Wideroe. A typical approach at a rural Norwegian airport.

Wideroe Approach (Wideroe)(LR)

Wideroe FA (Wideroe)(LR)

Current Wideroe Route Map:

Wideroe 6:2013 Route Map

SAS Group sells its 80% share in Widerøe

SAS Group (Scandinavian Airlines-SAS) (Stockholm) has today signed an agreement to sell 80% of its shares in Widerøe Flyveselskap AS (Bodo and Oslo) to a group of investors consisting of Torghatten ASA, Fjord1 AS and Nordland Fylkeskommune (together referred to as the “Investor Group”). SAS will retain a 20% share in Widerøe but will have an option to transfer full ownership of Widerøe in 2016.
The sale of Widerøe represents an important step in the improvement of SAS’ financial position with a significant reduction of SAS’ financial leverage. SAS and Widerøe will have a continued close commercial cooperation after the transaction, with Widerøe remaining an important regional partner to SAS.

As part of the transaction, SAS will sell seven Bombardier DHC-8-402 (Q400) aircraft to Widerøe which are currently leased by Widerøe from SAS. The loans related to these aircraft will be transferred to Widerøe. Additionally, three aircraft, currently not in use, has been sold from SAS to a lessor and subsequently leased by Widerøe.

SAS will receive approximately SEK 2.0 billion in conjunction with the divestment of Widerøe, including the aircraft-related transactions, and up to SEK 2.3 billion in total proceeds in the case of a full divestment in 2016. The total proceeds will reduce net debt by the same amount.[1] Additionally, the transaction will reduce the previously announced negative impact on equity of amended reporting rules for pensions by approximately SEK 1.0 billion from SEK 7.9 to SEK 6.9 billion.

The sale of Widerøe is expected to result in a limited capital loss for SAS of approximately SEK 230 million in case of a full divestment in 2016.

“This divestment is in line with the 4Excellence Next Generation strategy to build a long-term financially strong SAS. We are pleased to have developed Widerøe into a successful airline under SAS’ ownership and we look forward to continue strengthening Widerøe’s position as the leading regional airline in Norway together with the new owners”, says Rickard Gustafsson, SAS Group
President and CEO.

The transaction is subject to customary closing conditions, including clearance from Norwegian competition authorities, and is expected to close in September 2013.

Copyright Photo: Ton Jochems. Bombardier DHC-8-402 (Q400) LN-WDC (msn 4071) is seen on the ramp at Trondheim above the Arctic Circle.

Widerøe: AG Slide Show

Wideroe logo

Route Map:

Wideroe 5:2013 Route Map