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SAS Wants Out Of Deal W/BMI  
User currently offlineScotron11 From United Kingdom, joined Feb 2004, 1178 posts, RR: 3
Posted (8 years 9 months 3 weeks 11 hours ago) and read 2989 times:

SAS is keen to dispose of their 20% stake in BMI and is determined to withdraw from its loss-making joint venture with BD & LH on European routes as soon as the contract can be dissolved.

Jørgen Lindegaard, SAS chief executive, said in an interview with the Financial Times, that the joint venture had already cost SAS alone SKr1.5bn (£105m) in losses between 2000 and September this year. A loss for SAS from the venture of SKr450m was expected this year.

Under the terms of the so-called European Co-operation Agreement (ECA), which came into effect in January 2000 and runs to the end of 2007, the three airlines operate a revenue and profit-sharing joint venture comprising their European short-haul routes to and from Heathrow and Manchester.

Of the three carriers BMI operates the largest number of routes covered by the ECA, but it takes only 10 per cent of any losses, while Lufthansa and SAS each carry 45 per cent.

“It is a stupid contract, but there is nothing I can do about it,” said Mr Lindegaard.

5 replies: All unread, jump to last
 
User currently offlineMika From Sweden, joined Jul 2000, 2881 posts, RR: 4
Reply 1, posted (8 years 9 months 3 weeks 11 hours ago) and read 2880 times:

SAS should get out of it as soon as possible, there's no reason in the world to remain in that partnership if the only thing it brings SAS is losses.

User currently offlineScotron11 From United Kingdom, joined Feb 2004, 1178 posts, RR: 3
Reply 2, posted (8 years 9 months 3 weeks 11 hours ago) and read 2858 times:

Quoting Mika (Reply 1):

SAS should get out of it as soon as possible, there's no reason in the world to remain in that partnership if the only thing it brings SAS is losses.

Michael Bishop must be laughing all the way to the bank! By the by, could be a reason to step out of STAR and into OneWorld for SAS?


User currently offlineKahala777 From , joined Dec 1969, posts, RR:
Reply 3, posted (8 years 9 months 3 weeks 10 hours ago) and read 2848 times:

Bets are on for SAS to by the way of SkyTeam. Seeing as that SkyTeam offers the only North American to Scandi-Land airlines aside from SAS itself.

KAHALA777


User currently offlineAF022 From France, joined Dec 2003, 2159 posts, RR: 1
Reply 4, posted (8 years 9 months 3 weeks 10 hours ago) and read 2808 times:

MH operates EWRARN. Maybe MH will join as well?

User currently offlineZkojh From China, joined Sep 2004, 1686 posts, RR: 1
Reply 5, posted (8 years 9 months 3 weeks 10 hours ago) and read 2777 times:

another nail in BD's coffin, about time they get there act togehter, before someone puts the last nail in, and it gets burried..  Embarrassment


NZ 787-9 flying between PVG - AKL ! CAN'T WAIT!!
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