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SAS Back In Black - Positive Result For 2005  
User currently offlineTR From UK - England, joined May 2001, 953 posts, RR: 0
Posted (8 years 10 months 2 weeks 2 hours ago) and read 3855 times:

Key figures from the SAS Group's year end report published today:

· Income before capital gains and nonrecurring items amounted to MSEK
114 in 2005, an earnings improvement of MSEK 1 815.
· The Group's total operating revenue rose 6.5% to MSEK 61 887 for 2005.
· The Group transported a total of 34.9 million passengers, an increase
of 8% compared with 2004.

Earnings of MSEK 114 are in line or slightly better than market expectations (SME Direkt MSEK 120 and Reuters MSEK 20).

Jørgen Lindegaard, President and CEO of the SAS Group, comments:
-Turnaround 2005 comprising savings of SEK 14 billion was completed as planned. The unit cost has fallen by over 30% since 2002. After five years of sweeping changes, the SAS Group posts positive earnings before capital gains and nonrecurring items, an earnings improvement of SEK 1.8 billion compared with 2004. Scandinavian Airlines' new business models have strengthened competitiveness with improved cabin factors but weaker yield.
Despite powerful measures, further cost savings must be made to ensure long-term competitiveness in several of the Group's units. The SAS Group has, as communicated earlier, initiated new cost-cutting measures corresponding to SEK 2 billion.

31 replies: All unread, showing first 25:
 
User currently offlineBackfire From Germany, joined Oct 2006, 0 posts, RR: 0
Reply 1, posted (8 years 10 months 2 weeks ago) and read 3786 times:

Come on, don't believe the spin - buried in the full document is the minor issue of Scandinavian Airlines making an operating loss in Sweden, Denmark, and on the international services. Only SAS Braathens is making much of an improvement.

Lindegaard says that the mainline airline biz is still unprofitable which means more cost cuts are on the way.


User currently offlineOyKIE From Norway, joined Jan 2006, 2755 posts, RR: 4
Reply 2, posted (8 years 10 months 2 weeks ago) and read 3768 times:

Buying Braathens seems like a gold mine to SAS. I hope they will get the airlines back on track.


Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
User currently offlineKaiGywer From United States of America, joined Oct 2003, 12281 posts, RR: 35
Reply 3, posted (8 years 10 months 1 week 6 days 21 hours ago) and read 3704 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Then came 2006, and down into the drain it went...


“Once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you have been, an
User currently offlineMaersk737 From Denmark, joined Feb 2004, 717 posts, RR: 1
Reply 4, posted (8 years 10 months 1 week 6 days 15 hours ago) and read 3564 times:

Quoting KaiGywer (Reply 3):
Then came 2006, and down into the drain it went...

Naaa... Sounds a little pessimistic to me  Smile

Cheers

Peter



I'm not proud to be a Viking, just thankfull
User currently offlineHeisan67 From , joined Dec 1969, posts, RR:
Reply 5, posted (8 years 10 months 1 week 6 days 13 hours ago) and read 3523 times:

Braathens is the reason why there are black numbers in SAS today

User currently offlineScalebuilder From , joined Dec 1969, posts, RR:
Reply 6, posted (8 years 10 months 1 week 6 days 9 hours ago) and read 3462 times:

Quoting Heisan67 (Reply 5):
Braathens is the reason why there are black numbers in SAS today

Yep. SAS Norway the only profitable segment in the SAS family (official results reported by both SAS Braathens and Wideroe). Results of both Danish and Swedish operations running way red again.

The losses in Sweden and Denmark have been blamed on the stronger presence of low-cost carriers there. Credible excuse. This, however, does not explain why SAS long haul operations continue to rake in losses. High cost base the most likely reason, but there must be more to the story for it to make any sense. There are no long-haul low cost operators serving CPH.


User currently offlineHeisan67 From , joined Dec 1969, posts, RR:
Reply 7, posted (8 years 10 months 1 week 5 days 23 hours ago) and read 3393 times:

And Norway is the only SAS hub with no long haul SAS flights - ironic!

User currently offlineRJ100 From Switzerland, joined Nov 2000, 4126 posts, RR: 29
Reply 8, posted (8 years 10 months 1 week 5 days 22 hours ago) and read 3377 times:

Longhaul flights are problematic for countries not having a sufficient home market. Good examples are the Scandinavian countries, Switzerland and Austria (there are more of course).

Longhaul fleets are very costly, but income is low (the more connecting traffic you need, the less).

But anyway, good to see the company can generate money elsewhere!  Smile

Regards,
RJ100



none
User currently offlineHeisan67 From , joined Dec 1969, posts, RR:
Reply 9, posted (8 years 10 months 1 week 5 days 22 hours ago) and read 3366 times:

Unfortunately SAS do not have the best aircraft size/types for long haul flights from eg Oslo.
As most airlines have discovered (SAS Braathens too) - most travellers prefer travelling nonstop.
Hopefully SAS will dicover it too.

So far - Continental have success with their OSL-EWR service, and PIA from Oslo to Islamabad/Lahore/Karachi.


User currently offlineKaiGywer From United States of America, joined Oct 2003, 12281 posts, RR: 35
Reply 10, posted (8 years 10 months 1 week 5 days 21 hours ago) and read 3334 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Quoting Heisan67 (Reply 9):
As most airlines have discovered (SAS Braathens too) - most travellers prefer travelling nonstop.

And starting soon, non-stop SVG-FCO and SVG-CDG.



“Once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you have been, an
User currently offlineHeisan67 From , joined Dec 1969, posts, RR:
Reply 11, posted (8 years 10 months 1 week 5 days 20 hours ago) and read 3319 times:

Quoting KaiGywer (Reply 10):

Correct - once a week.


User currently offlineKaiGywer From United States of America, joined Oct 2003, 12281 posts, RR: 35
Reply 12, posted (8 years 10 months 1 week 5 days 20 hours ago) and read 3313 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Quoting Heisan67 (Reply 11):
Correct - once a week.

And Stavanger's mayor will once again make a ceremony out of it  Wink Every time SVG gets new service he is there...lol



“Once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you have been, an
User currently offlineHeisan67 From , joined Dec 1969, posts, RR:
Reply 13, posted (8 years 10 months 1 week 5 days 17 hours ago) and read 3247 times:

Well then there will be one there ;=)

User currently offlineOrion737 From , joined Dec 1969, posts, RR:
Reply 14, posted (8 years 10 months 1 week 5 days 2 hours ago) and read 3178 times:

The price SAS charge for a sandwich or a cup of coffee on their intra European flights, Im not suprised to hear they are making profit.

User currently offlineSorayafaradiba From Germany, joined Nov 2005, 96 posts, RR: 0
Reply 15, posted (8 years 10 months 1 week 4 days 23 hours ago) and read 3138 times:

Quoting Heisan67 (Reply 9):
Unfortunately SAS do not have the best aircraft size/types for long haul flights from eg Oslo.
As most airlines have discovered (SAS Braathens too) - most travellers prefer travelling nonstop.
Hopefully SAS will dicover it too.

So far - Continental have success with their OSL-EWR service, and PIA from Oslo to Islamabad/Lahore/Karachi.

SAS should try to operate the A319 on OSL-EWR and or OSL-ORD (UA hub!). LH, LX and KL seem to be successful with these flights.


User currently offlineHeisan67 From , joined Dec 1969, posts, RR:
Reply 16, posted (8 years 10 months 1 week 4 days 23 hours ago) and read 3132 times:

A319 OSL-EWR? Isn't that a bit to long distance for A319?

SAS Braathens operate only B737 (400-500-600-700-800)

The problem for SAS is that their long haul fleet consists of to large aircrafts


User currently offlineOrion737 From , joined Dec 1969, posts, RR:
Reply 17, posted (8 years 10 months 1 week 4 days 23 hours ago) and read 3124 times:

Thats right. The 757 or even 763 would have been ideal for a few long haul routes from Oslo. I think its a disgrace that SK offer no long hauls from Norway.

User currently offlineSorayafaradiba From Germany, joined Nov 2005, 96 posts, RR: 0
Reply 18, posted (8 years 10 months 1 week 4 days 22 hours ago) and read 3074 times:

Quoting Heisan67 (Reply 16):
A319 OSL-EWR? Isn't that a bit to long distance for A319?

I am talking about the ACJ model!


User currently offlineScalebuilder From , joined Dec 1969, posts, RR:
Reply 19, posted (8 years 10 months 1 week 4 days 14 hours ago) and read 2989 times:

Quoting Orion737 (Reply 17):
Thats right. The 757 or even 763 would have been ideal for a few long haul routes from Oslo. I think its a disgrace that SK offer no long hauls from Norway.

With all the turbulence related to union unrest within SAS recently (and historically too), I bet most Norwegians would prefer that Continental continues to serve their only long-haul. They are doing a good job.


User currently offlineTango-Bravo From United States of America, joined Jun 2001, 3806 posts, RR: 29
Reply 20, posted (8 years 10 months 1 week 4 days 14 hours ago) and read 2977 times:

Quoting Scalebuilder (Reply 6):
Yep. SAS Norway the only profitable segment in the SAS family (official results reported by both SAS Braathens and Wideroe). Results of both Danish and Swedish operations running way red again.

How can this possibly be? Wink Isn't competition supposed to be a zero-sum game in the world of airline service, where there must be a loser for every winner -- and there absolutely cannot be two winners where head-to-head competition exists -- and especially where the competitior is an eeeeeeeeevil Wink LCC? (at least according to the gospel of the U.S. legacy-lovers) Sounds like SAS Norway/Braathens is doing well, thank you, in spite of meaningful competion from LCC Norwegian Air. Apparently not the same story for SAS Denmark and Sweden where little, if any, serious competition exists in their respective domestic markets.

Quoting Orion737 (Reply 14):
The price SAS charge for a sandwich or a cup of coffee on their intra European flights, Im not suprised to hear they are making profit.

If so, sufficient demand at the prices charged is obviously "there;" no demand = no profit regardless of margin per unit (not) sold.


User currently offlineHeisan67 From , joined Dec 1969, posts, RR:
Reply 21, posted (8 years 10 months 1 week 4 days 13 hours ago) and read 2957 times:

Quoting Tango-Bravo (Reply 20):
Apparently not the same story for SAS Denmark and Sweden where little, if any, serious competition exists in their respective domestic markets.

In Sweden there are manyh competitors for SAS. You've got Flyme, flynordic, Malmø aviation to mention some. Sterling operates out of Sweden. In Norway you practical only got Norwegian on the domestic market.

But strange to see that SAS Braathens is doing that well, and SAS Danmark/Sverige are getting red numbers. Don't forget that SAS Danmark has had to reduce traffic since SAS Braathens, and not to mention Norwegian, have launched many new international routes from Norway. Previously SAS flew almost all Norwegian passengers to Copenhagen, and then out in Europe. No we don't need that extra stop (the duty free shop at CPH is NOT happy) and get to our destination on SAS Braathens/Norwegian much faster.


User currently offlineAndaman From , joined Dec 1969, posts, RR:
Reply 22, posted (8 years 10 months 1 week 4 days 13 hours ago) and read 2939 times:

Heisan67 is right, the situation in Sweden is different, SAS has to compete much harder there, with Flynordic (Finnair), FlyMe, Malmo Av.
Sweden, Norway and Finland all have rather busy domestic markets, all countries are large by area.
Finland's situation is bit same than Norway's, there are only two airlines in domestic business now, Finnair and Blue1 (SAS), serving together around 20 airports. Other companies have not succeeded, markets too small after all?


User currently offlineHeisan67 From , joined Dec 1969, posts, RR:
Reply 23, posted (8 years 10 months 1 week 4 days 12 hours ago) and read 2932 times:

SAS Braathens route network:
http://www.sasbraathens.no/WCM/templates/IFrame.aspx?id=26

Widerøe network (100% owned by SAS):
http://www.wideroe.no/modules/module...yType=2&iCategoryId=42&iInfoId=248

Norwegian route network:
http://www.norwegian.no/sw181.asp


User currently offlineCedars747 From Norway, joined Dec 2005, 2721 posts, RR: 19
Reply 24, posted (8 years 10 months 1 week 4 days 12 hours ago) and read 2903 times:

Quoting Heisan67 (Reply 7):
And Norway is the only SAS hub with no long haul SAS flights - ironic!

unbelievable!
Alex!!!



Tengo una pasion por la aviacion !لدي شغف للطيران !I have a passion for aviation !
25 TheSonntag : Cool, SAS makes profit. So lets buy A340-600s, 777s, MD11s, more A319, 737NG, RRJ to get more airplane types!!! Or maybe they could introduce some F10
26 Tango-Bravo : Thank you for making this valid point. I will confess that I was not previously aware of the extent of Sweden-based LCC competition with which SAS Sv
27 Heisan67 : OK sorry - was not aware that Americans have trouble beliving it is possible for both LCC operators and established airlines to co-exist and make mon
28 Tango-Bravo : As a matter of curiousity with regard to SAS Braathens' positive financial results, does anyone know how routes within Norway perform financially in c
29 Cedars747 : I love SAS but I am afraid Sas Braathens has became a second LCA in Norway. Alex!!!
30 Post contains links Heisan67 : I belive both their domestic and international routes are doing well. More info about this at http://www.sasgroup.net
31 Scalebuilder : Well...lots of interesting points in this post. The Norwegian market is much smaller and also very different from the US market. Most Norwegians fly
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