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SAS Plays Hard Ball  
User currently offlineHeisan67 From , joined Dec 1969, posts, RR:
Posted (10 years 4 months 2 weeks 3 days 2 hours ago) and read 3037 times:

SAS plays hard ball

SAS CEO Joergen Lindegaard will pull no punches to restructure the ailing Scandinavian airline. Danish employees will be replaced by Norwegians or Swedes if they do not agree to wage cuts, Danish newspaper Jyllands-Posten reports. Norwegian pilots will also accept cuts or see subsidiary Braathens take over, newspaper VG reports.

SAS CEO Jørgen Lindegaard has made it crystal clear that all staff must make sacrifices to help turn the airline around.


"I am not interested at all in what nationality people have. If they don't want to take part they must face the consequences," Lindegaard told Jyllands-Posten.

Negotiators for Norwegian cabin crew employees agreed Wednesday to pay, insurance and pension cuts as well as more work in order to help management implement cost-cutting plans. Now SAS is making it clear it expects this kind of commitment across the board but Danish cabin crews are far from an agreement.

SAS also needs to come to terms with the company's 2,000 pilots, who believe they have offered sacrifices in line with the firm's demands.

SAS intends to split into four companies, one each for Denmark, Sweden and Norway and one for international flights. The Norwegian company will feature a merger between SAS and subsidiary Braathens.

On Wednesday SAS postponed final decisions on its restructuring in Norway pending negotiations with pilots.
http://www.aftenposten.no/english/business/article.jhtml?articleID=750671



19 replies: All unread, jump to last
 
User currently offlineQIguy24 From , joined Dec 1969, posts, RR:
Reply 1, posted (10 years 4 months 2 weeks 3 days 2 hours ago) and read 2997 times:

I can only agree with Mr. Lindegaard CEO of SAS.
The employes really must do some sacrifice, if they want the company to survive. And those who are not interested shouldn't be in the company at all.

The right words!!! Respect to that man!


User currently offlineNavigator From Sweden, joined Jul 2001, 1172 posts, RR: 14
Reply 2, posted (10 years 4 months 2 weeks 3 days 2 hours ago) and read 2967 times:

Hello Hejsan67,
Thank you for your information. Just a minor correction. The four companies are:

Denmark, Norway, Sweden and Intercontinental flights.

International flights within Europe from Denmark, Sweden and Norway will be operated by the local company in respective country. Intercontinental flights will be operated by the Intercontinental subsidiary.

Let us hope this late move will eventually save SAS.



747-400/747-200/L1011/DC-10/DC-9/DC-8/MD-80/MD90/A340/A330/A300/A310/A321/A320/A319/767/757/737/727/HS-121/CV990/CV440/S
User currently offlineQIguy24 From , joined Dec 1969, posts, RR:
Reply 3, posted (10 years 4 months 2 weeks 3 days 2 hours ago) and read 2940 times:

And I just read that If the employes doesnt accept the paycut for 1.6bn danish kroner, SAS will stop flying all their longhaul routes and koncentrate only on Europe. That is really sad to see if that happens  Sad
They might aswell close down the whole company then. I could never see SAS as a LCC. They are to great for that.
No offense to the LCC's with that comment.



User currently offlineN276AASTT From US Virgin Islands, joined Jan 2004, 620 posts, RR: 0
Reply 4, posted (10 years 4 months 2 weeks 3 days 2 hours ago) and read 2934 times:

In tough economic times, tough words must be said and tough decisions must be made. If it's necessary to take this kind of "stance" in order to save the company, then by all means, do it.


Dejale Caer tu el Peso! YOMO
User currently offlineQIguy24 From , joined Dec 1969, posts, RR:
Reply 5, posted (10 years 4 months 2 weeks 3 days 2 hours ago) and read 2899 times:

N276AASTT

It is not that easy to just do it. The employes just have to accept what SAS need from them. But they don't. They been spoiled for so many years now. And that I must say is only SAS own fault. SAS didn't see into the future and kept spoiling its employes, and that is what they are paying for now. That is one of the reasons the employes should repay some of it back by being loyal to the company.


User currently offlineHeisan67 From , joined Dec 1969, posts, RR:
Reply 6, posted (10 years 4 months 2 weeks 3 days 1 hour ago) and read 2801 times:

I totally agree QIguy24. SAS didn't see what was happening in the airline industry untill it was ALMOST to late. SAS is a also very little flexible and didn't start listening to the customers....as they said themselves some months ago. Hopefully this turnaround will effectful and not to late.

User currently offlineCPH-R From Denmark, joined May 2001, 5977 posts, RR: 3
Reply 7, posted (10 years 4 months 2 weeks 3 days ago) and read 2679 times:

Not to mention that the change from Boeing to Airbus in the longhaul sector couldn't have come at a worse time - they started recieving them in the wake of 9/11, while business was still very slow.

Btw, regarding the 1.6 bn DKK they need to save, according to Linnegard, they had secured 80% of that, through negotiations with the swedish & norwegian staff. Only the danish staff was still negotiating.


User currently offlineQIguy24 From , joined Dec 1969, posts, RR:
Reply 8, posted (10 years 4 months 2 weeks 2 days 23 hours ago) and read 2634 times:

regarding the 1.6 bn DKK they need to save, according to Linnegard, they had secured 80% of that, through negotiations with the swedish & norwegian staff. Only the danish staff was still negotiating.

They needed to save 12.5bn danish kroner. And they have got 80% of that which means they still missing 1.6bn danish kroner. And its the last 1.6bn they need..

I have a link for you here. Its on danish

Skæbnedag i SAS
--------------------------------------------------------------------------------

Afgørelsen om massefyringer eller ej er langt fra den eneste beslutning, SAS-bestyrelsen skal træffe i dag. Den skal også for at tage stilling til en plan for en ny struktur i den nødlidende luftfartskoncern.
SAS’ koncernchef Jørgen Lindegaard vil på bestyrelsesmødet i dag præsentere et forslag om en opdeling af SAS i fire divisioner - tre nationale og en international. Konsekvensen af den nye organisation vil bl.a. svække de 39 faglige organisationers magt betydeligt.

Ledelsens krav til de ansatte er ultimativt: Gå ned i løn eller mist jobbet. SAS har allerede udset sig besparelser for 12,5 mia. svenske kroner. Men endnu to mia. kr. skulle have været forhandlet hjem med medarbejderne. Men det er ikke lykkedes, derfor kan konsekvensen blive, at bestyrelsen svinger sparekniven.

STREJKER TRUER
Dermed risikerer SAS' passagerer omfattende arbejdsnedlæggelser, hvis manglende besparelser på overenskomsterne får SAS’ bestyrelse til at træffe drastiske beslutninger om nedskæringer, lukninger, outsourcing og massefyringer. Både ledelse og de faglige ledere er forberedte på en konflikt, der kan gå hårdt ud over flytrafikken.



User currently offlineChriskam From Norway, joined Jun 2000, 44 posts, RR: 0
Reply 9, posted (10 years 4 months 2 weeks 2 days 17 hours ago) and read 2506 times:

As an (non-flying) SAS-employee, I do hope the unions now finally get the picture, and agree to concessions - it'll be tough, but it's the only way. Look at Aer Lingus. They were on the brink of disaster in 2001, but has cut staff and costs by 30%, and now have costs close to LCCs, houndres of millions of euro in cash, a European service that can be called LCC+ and is expanding its intercont business. SAS has been to slow to react, but hopefully the changes now being implemented (there's more to come) will make us competitive again. We're already fighting back big-time in Norway and on intra-Scandinavian routes, which has Norwegian (www.norwegian.no) worried, and shareholders running. After months of bullish stories by CEO Bjorn Kjos, Norwegian was forced to issue a profit-warning this week - which led to the stock plummeting more than 10% in one day (an that was before Madrid 3/11). SAS is gonna pull through on this one, and when we're great again, we can all look back and tell ourselves it was worth it! Go Scandinavian (www.scandinavian.net)

User currently offlineKLM777 From Netherlands, joined Dec 2003, 372 posts, RR: 0
Reply 10, posted (10 years 4 months 2 weeks 2 days 17 hours ago) and read 2431 times:

Sad thing mr. Lindegaard is not on A.net, I would put him on my respected user list immediately  Big grin! This is so common IMO, employees who think in short-term about their own stuff, not realizing sacrifices need to be made to be safe in the long-run. Respect to the man for making such a clear statement, I hope he can keep it...

Jeroen



Every landing is a controlled crash
User currently offlinePKK From Denmark, joined Apr 2003, 184 posts, RR: 2
Reply 11, posted (10 years 4 months 2 weeks 2 days 15 hours ago) and read 2413 times:

Gentlemen,

I have noticed a lot of comments on SAS and other airlines in trouble, referring to "poor management", "reacted too slow", etc. etc.

See, that's the "funny" thing about SAS. Very few of the current management of SAS can be "painted' with that brush.

I tried a long time ago to start a thread about airline CEO's and their credibility and challenges. No one here reacted. Seeing KLM777's post, I thought I might try to bring some facts to the attention of A.netters again.

Mr. Lindegaard was headhunted to the job as CEO and President of SAS from a very successful career in other quite large Danish companies. He is the first Danish CEO and President in SAS' history. Something that has always bugged the Danes. In SAS CPH, the ancronym SAS is often referred to as "Svensk Alt Sammen" (Danish for: It is all Swedish)

Lindegaard took up his new position with SAS on May 1st 2001. The following month, the European Commision fined SAS and Maersk Air for "fixing" prices. I believe it was the biggest fine ever issued. Lindegaard had, when he started a right hand man, Mr. Vagn Soerensen. Openly regarded as the "crown prince" of SAS. A very experienced airline industry exceutive, that was supposed to assist Lindegaard, with the integracies of the airline industry. Come late June 2001, Lindegaard realised that Soerensen had lied to him about his involvement in the "price fixing" scandal and therefore sacked him. Vagn Soerensen very quickly became CEO and President of Austrian Airlines and was this year appointed as President of the European Airlines association. That should say something about his credentials as an Airline Executive and so should the fact that Austrian is doing quite well in comparison to other Airlines. But, Lindegaard put more emphasis on the integrity of his right hand man and how his lying to him could affect the company and his credibility in his new role. RESPECT!!

In July 2001, the ENTIRE SAS board resigned, also as an effect of the "price fixing" scandal. So 3 months into the job, Lindegaard, with no previous airline experience, finds himself without his right hand man and faced with the challenge of finding a totally new board.

He gets on with it, only to be hit by 911, We all know what that did to the industry. But it doesn't stop here...... On October 8th 2001, SAS suffers it's worst ever accident when a SAS MD87 hits a Learjet that has strayed onto the runway in thick fog at Linate airport in Italy.

Now, after such first 6 months in a new job, I have often wondered if Lindegaard has not asked himself "why did I sign on the dotted line?"

But again, he got on with it!! Much has been said about airline managers and of SAS' sluggish response to the changes in the industry. Lindegaard was one of the first to point out to staff and to the public, that SAS themselves was mostly to blame for the trouble they were in.

He said quite a while back "SAS has not changed for the past 10-15 years. They think they have, but in reality they haven't. It is a classical example of what near monopoly can do to attitudes and thinking"

Now here's a man that has faced realities and is trying to do something about it. And still today he is there. Trying to save what by many is regarded as a national symbol of Scandinavia. The SAS concept was conceived in late '39 early '40, but due to WWII, could only be realised later. The cross border cooperation, regardless of nationality and culture is the essence of SAS. They made it work before UN, EU or NATO!!!

I am a SAS brat, so I know what "goodies" they had and to some extent still have. Furthermore do I work in the industry myself today, so I feel that I am qualified to say that ALL employees in SAS needs to look for the long term good of the company and ultimately themselves. And realise that the world has changed and they need to do something. It is important they do so, because they have something special going. You try to go through trip reports or posts here on A.net and you will find that 80% are VERY positive about SAS and rightly so!!!

I had the pleasure of flying two SAS flights Thursday, the day that by Scandinavian press was named as Destiny Day for SAS. The board was meeting and....... all crew on the flight and on the ground carried out their duties impeccably and showed no frustration or disapproval. I happened to be on Sabena and other flights through BRU in the last days of their existence and despite many posts here about the passion of Sabena's employees and how much they did, I am sorry to say... I never saw it. It was not the fault of Sabena's staff that they failed, absolutely not, but with their many strike actions in the last months, they certainly did not help the situation. I hope all SAS'ers realise that, and don't take the same route.

I think in Lindegaard, you have a guy that speaks the truth, no BS!!!

The latest is "Plan B" just out tonight. If the target of 1.6 Billion SEK savings is not met. SAS will become a European regional carrier only. The BKK route will be discontinued already from the start of the summer schedule in 2 weeks and all other intercontinental routes will be discontinued gradually as partners can be found to take them over..............

PLEASE DO NOT LET THIS HAPPEN!!!!!

To all Scandinavians: FLY SCANDINAVIAN - IT IS SCANDINAVIAN


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Best of luck SAS
Peter


User currently offlineCPH-R From Denmark, joined May 2001, 5977 posts, RR: 3
Reply 12, posted (10 years 4 months 2 weeks 2 days 15 hours ago) and read 2343 times:

Damn Peter - too much to read through at this time, but it's good to see that someone still have a good overview  Smile/happy/getting dizzy

QIguy24,
ok, I only saw a very very short bit in the Financial news, where he said that 80% had been secured, so I figured that it was 80% of the original 1.6 bn.

I truly hope that SAS will live through this, even if it means cutting all international services. I think SAS would be better off going back to where they can earn money - and then gradually introduce longhaul routes once the market matures and it becomes possible to earn money flying those routes.


User currently offlinePKK From Denmark, joined Apr 2003, 184 posts, RR: 2
Reply 13, posted (10 years 4 months 2 weeks 2 days 15 hours ago) and read 2319 times:

CPH-R

Sorry yes it's late...... but been busy this week so only got the chance to "spill the beans" now at this late hour.......

But spread the word out there in Asia....... Try the Laks or LAX or Salmon....

Peter


User currently offlineHeisan67 From , joined Dec 1969, posts, RR:
Reply 14, posted (10 years 4 months 2 weeks 1 day 20 hours ago) and read 2149 times:

Funny reading Chriskams comments about SAS competitors in Norway. Take a look at the SAS-stock and you'll see that SAS isn't doing to well either. Norwegian is a company which only has been flying for 19 months and during this time has been able to take over 20% of the SAS market in Norway. Norwegian also has opened more routes than anyone could dream on. This summer Norwegian will have 12 domestic routes in Norway and a total of 21 international routes from Norway. Norwegian will not make money for some months yet since they still are in a build up phase. No company starts their first year making money..at least not many. However it's funny to see that SAS now tries to become more an more like Norwegian by slashing prices, ending/changing inflight service, putting more seats in their aircrafts, removing the Saturday rule etc. Anyone who belive this would have happened if SAS was alone on the market in Norway - I don't think so. SAS then would had reduced some of their costs, but would be far more interested in increasing the prices instead.


User currently offlineStarlionblue From Greenland, joined Feb 2004, 16993 posts, RR: 67
Reply 15, posted (10 years 4 months 2 weeks 1 day 18 hours ago) and read 2079 times:

Maybe SAS should face the music and realize that they cannot compete on the long haul markets (too costly). Either do the European only thing (as mentioned) or sell the company to LH and give the shareholders some value that way...


"There are no stupid questions, but there are a lot of inquisitive idiots."
User currently offlineHeisan67 From , joined Dec 1969, posts, RR:
Reply 16, posted (10 years 4 months 2 weeks 1 day 17 hours ago) and read 2003 times:

Hear-hear!! I totally agree. Perhaps Lufthansa should overtake SAS and start Lufthansa Nordic!

User currently offlineMaersk737 From Denmark, joined Feb 2004, 678 posts, RR: 1
Reply 17, posted (10 years 4 months 2 weeks 1 day 16 hours ago) and read 1941 times:


Your are probably right Starlionblue, but I think that the majority of the national airlines in Europe soon will face the same problems, SAS is trying to overcome at the moment.

I sure hope the "Vikings" will continue to fly.

Cheers

Peter











I'm not proud to be a Viking, just thankfull
User currently offlineStarlionblue From Greenland, joined Feb 2004, 16993 posts, RR: 67
Reply 18, posted (10 years 4 months 2 weeks 1 day 16 hours ago) and read 1916 times:

I hope so too. And there are interests in SAS that would not like a sale. But given the current pragmatic trend in public and private finances, I would not be too surprised if a sale occured.

However, any buyer would be foolish to dismantle the SAS brand name. It's very powerful and respected.



"There are no stupid questions, but there are a lot of inquisitive idiots."
User currently offlineSk945 From Sweden, joined May 2002, 432 posts, RR: 0
Reply 19, posted (10 years 4 months 2 weeks 1 day 13 hours ago) and read 1847 times:

I think it is a bit strange - all the discussion about the longhault flights.
The information we have got here in Sweden is that the Longhault traffic are the only one making money right now and the Euro-traffic starts to pick up. SAS main problem are the Swedish and Danish domestic traffic. But it all comes down to the yield.


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