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SAS Group Q2: -106 Msek ~ -€11 M  
User currently offlineEBGARN From Sweden, joined Jan 2008, 222 posts, RR: 0
Posted (5 years 8 months 1 week 1 day 10 hours ago) and read 2037 times:

From the report:

Q2 Net result: -106 MSEK ~€-11 M. Expected was -629 MSEK.

Q2 Revenue: 17.703 MSEK. Expected was 17.017 MSEK

"To turn around the earnings trend in 2008, we announced an action plan - Profit 2008 - in conjunction with the interim report for the first quarter. We have now strengthened this program with an additional MSEK 400 and, accordingly, the total earnings effect for 2008 amounts to SEK 1.5 billion. We have also decided to reduce capacity by an additional seven aircraft, entailing a total reduction of 18 aircraft. For the entire Group, the total reduction corresponds to 33 aircraft and the number of positions will be reduced by a total of approximately 2,500, meaning an additional 500 positions added to the figure that was previously announced."

Financial position:

"On June 30, 2008, the SAS Group's cash and cash equivalents
amounted to MSEK 8,204 (9,955). Since year-end, cash and
cash equivalents have declined by MSEK 789, which is mainly
due to the large amortization made in June. In addition to cash
and cash equivalents, the SAS Group has unutilized contract
loan commitments amounting to MSEK 5,767 (6,074). The
revolving credit facility was partly utilized in the amount of
MEUR 240 during the second quarter, while two new credit
facilities were contracted for a total of approximately MSEK
2,000, one of which will be used for deliveries of CRJ 900
aircraft. In total, the SAS Group has financial preparedness
corresponding to MSEK 13,971 (16,029) or 22% (26%) of
revenues."

[Edited 2008-08-13 23:18:08]


A306,A319/20/21,A332/3,A343/6,A380,B717,B727,B737,B744,B752/3,B763,B772/3/W,C-130,AN26,CRJ900,Il62,DC-8/9/10,MD80's,BaeR
14 replies: All unread, jump to last
 
User currently offlineEBGARN From Sweden, joined Jan 2008, 222 posts, RR: 0
Reply 1, posted (5 years 8 months 1 week 1 day 10 hours ago) and read 2024 times:

On an EBIT level, only Spanair and SAS Ground Services are making a loss.

http://feed.ne.cision.com/wpyfs/00/00/00/00/00/0C/F3/9B/wkr0003.pdf



A306,A319/20/21,A332/3,A343/6,A380,B717,B727,B737,B744,B752/3,B763,B772/3/W,C-130,AN26,CRJ900,Il62,DC-8/9/10,MD80's,BaeR
User currently offlineEcb747 From Norway, joined Apr 2006, 37 posts, RR: 0
Reply 2, posted (5 years 8 months 1 week 1 day 9 hours ago) and read 1986 times:

Norwegian newspaper VG reports (http://www.vg.no/nyheter/innenriks/artikkel.php?artid=500066 only in norwegian) that 4 of the aircrafts that are being grounded is for SAS Norway. Most of the planes will be the MD's, but SAS Norway only operates 737's so not all grounded aircrafts will be MD's. SAS also dismisses the rumours of pay-cuts.
I haven't seen any reports on traffic lately, but I imagine that more people are flying, but with oil-prices still high, it's hard to turn a profit.
Do anyone have any info on SAS hedging policy?


User currently offlineSomeone83 From Norway, joined Sep 2006, 3173 posts, RR: 3
Reply 3, posted (5 years 8 months 1 week 1 day 8 hours ago) and read 1923 times:

The results are not good, but alot better than expected. The only positive development are with SAS Intercontinental and SAS Technical Services (STS) which shows an improve over the same period in 2007

Quoting Ecb747 (Reply 2):
Norwegian newspaper VG reports (http://www.vg.no/nyheter/innenriks/artikkel.php?artid=500066 only in norwegian) that 4 of the aircrafts that are being grounded is for SAS Norway. Most of the planes will be the MD's, but SAS Norway only operates 737's so not all grounded aircrafts will be MD's. SAS also dismisses the rumours of pay-cuts.
I haven't seen any reports on traffic lately, but I imagine that more people are flying, but with oil-prices still high, it's hard to turn a profit.
Do anyone have any info on SAS hedging policy?

SAS Norway will probably ground 4 of their 737-classics and I wouldn't be surprised if those 4 are their 4 737-400. SAS Hegding policy is to hedge between 40 and 60% of their fuel


User currently offlineEBGARN From Sweden, joined Jan 2008, 222 posts, RR: 0
Reply 4, posted (5 years 8 months 1 week 1 day 5 hours ago) and read 1836 times:

Since the government of Lithuania has decided not to fully privatise Air Baltic, SK will sell their 47% stake in the airline. This was just communicated to news agencies.


A306,A319/20/21,A332/3,A343/6,A380,B717,B727,B737,B744,B752/3,B763,B772/3/W,C-130,AN26,CRJ900,Il62,DC-8/9/10,MD80's,BaeR
User currently offlineSomeone83 From Norway, joined Sep 2006, 3173 posts, RR: 3
Reply 5, posted (5 years 8 months 1 week 1 day 5 hours ago) and read 1825 times:

http://www.reuters.com/article/rbssI...tilitiesNews/idUSSAT00545420080814

Here's the link til the AirBaltic sale

[Edited 2008-08-14 04:20:44]

User currently offlineBT001 From Latvia, joined Aug 2006, 120 posts, RR: 0
Reply 6, posted (5 years 8 months 1 week 1 day 4 hours ago) and read 1782 times:



Quoting EBGARN (Reply 4):
Since the government of Lithuania has decided not to fully privatise Air Baltic, SK will sell their 47% stake in the airline. This was just communicated to news agencies.

I think Latvian government must also decide on that as they are owners of stake in Air Baltic.  Smile


User currently offlineEBGARN From Sweden, joined Jan 2008, 222 posts, RR: 0
Reply 7, posted (5 years 8 months 1 week 1 day 4 hours ago) and read 1767 times:



Quoting BT001 (Reply 6):
I think Latvian government must also decide on that as they are owners of stake in Air Baltic.

I'm so sorry, BT001 and all other Latvians! Of course, it's about Latvia and nothing else. My mistake!  footinmouth 



A306,A319/20/21,A332/3,A343/6,A380,B717,B727,B737,B744,B752/3,B763,B772/3/W,C-130,AN26,CRJ900,Il62,DC-8/9/10,MD80's,BaeR
User currently offlineSomeone83 From Norway, joined Sep 2006, 3173 posts, RR: 3
Reply 8, posted (5 years 8 months 1 week 23 hours ago) and read 1671 times:

I suspect that this might be a strategy from SAS' side to put some pressure on the Latvian gov't

User currently offlineMarcoPoloWorld From United States of America, joined Mar 2008, 617 posts, RR: 0
Reply 9, posted (5 years 8 months 1 week 13 hours ago) and read 1602 times:

This is one of those old-school flag carriers whose "home" market is about half that of the state of California. What good does it do for the three Scandinavian countries involved other than effectively delay the benefit of having their major airports feed directly into real world hub airports such as Frankfurt and Amsterdam.

Imagine having the ability to fly SFO-LLA on a one-stop itinerary - if LH was instead the main player in this market, that would be a distinct possibility (assuming an xfer at FRA, then a direct flight to LLA). Instead, SK inefficiently maintains three hubs in this limited market (Stockholm, Oslo, and Copenhagen) due most likely to political reasons. So you continue to be forced to fly thru multiple "hubs" to get to where you are going on SK. Even the newly planned SFO-CPH route (so spectacularly aborted by SK recently) would still have required two xfers to get to LLA - because SK doesn't care to even have any direct feed from regional cities to CPH from non-Danish cities within Scandinavia.

Get the governments out of this POJ, and let Lufthansa or someone of its caliber acquire it.


User currently offlineOyKIE From Norway, joined Jan 2006, 2673 posts, RR: 4
Reply 10, posted (5 years 8 months 1 week 3 hours ago) and read 1525 times:



Quoting MarcoPoloWorld (Reply 9):
Imagine having the ability to fly SFO-LLA on a one-stop itinerary - if LH was instead the main player in this market, that would be a distinct possibility (assuming an xfer at FRA, then a direct flight to LLA). Instead, SK inefficiently maintains three hubs in this limited market (Stockholm, Oslo, and Copenhagen) due most likely to political reasons. So you continue to be forced to fly thru multiple "hubs" to get to where you are going on SK. Even the newly planned SFO-CPH route (so spectacularly aborted by SK recently) would still have required two xfers to get to LLA - because SK doesn't care to even have any direct feed from regional cities to CPH from non-Danish cities within Scandinavia.

We need a Scandinavian Airline! Remember that we used to pioneer air travel and are huge at shipping compared to the relatively low dense populated area that Scandinavia is. SAS could be the HUB for all passengers coming from the U.S. to secondary markets in Europe. The unique geographic location makes this a quick routing.

Quoting MarcoPoloWorld (Reply 9):
Get the governments out of this POJ, and let Lufthansa or someone of its caliber acquire it.

No, SAS should increase the IC fleet to about 20 widebody planes  Silly



Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
User currently offlineJoost From Netherlands, joined Apr 2005, 3149 posts, RR: 4
Reply 11, posted (5 years 8 months 1 week 1 hour ago) and read 1473 times:



Quoting MarcoPoloWorld (Reply 9):

It's not like LLA-SFO is such a big market.

Actually, their three hubs are not that strange. For LLA (and other Swedish regional airports) a large portion of the demand is domestic, and Stockholm, as the capital, is one of the primary destinations. Therefore, they have enough demand for ARN-LLA (and any ARN-domestic destination) anyways. The same goes for OSL-[any norwegian destination] and HEL-[any finnish domestic destination].

Then, a large portion of transfer traffic will go to Europe. OSL, CPH and ARN all have sufficient demand for daily and x-daily flights to the most important European airports. (LHR, AMS, BRU, FRA, CDG, BCN, MAD, etc, etc) These flights are self-supporting anyways. So LLA-[major European destination] flights are covered via ARN by default.

So a CPH-[small scandinavian airports] routes would only cater the O&D demand (not extremely high) and the demand for small Scandinavian airports to destinations that would not be served ex ARN anyways. Summed up: it's not so strange.


User currently offlineSandroZRH From Switzerland, joined Feb 2007, 3414 posts, RR: 50
Reply 12, posted (5 years 8 months 6 days 22 hours ago) and read 1432 times:

http://www.atwonline.com/news/story.html?storyID=13697

total loss SEK 411M, plus they'll ground an additional 7 aircraft, bringing the total planned fleet reduction to 33.


User currently offlineMarcoPoloWorld From United States of America, joined Mar 2008, 617 posts, RR: 0
Reply 13, posted (5 years 8 months 6 days 10 hours ago) and read 1369 times:



Quoting Joost (Reply 11):
It's not like LLA-SFO is such a big market.

That's easy for you to say hehe...  Smile Urbanites such as you and I can enjoy a nonstop between SFO and AMS daily anytime, and we wouldn't give a second thought to any of the smaller places.....

Anyways, all I'm suggesting is for the opportunity of one or perhaps two daily nonstops to a major hub from a "major" provincial city in Scandinavia..... And here's Luleå....  Smile

http://upload.wikimedia.org/wikipedia/commons/thumb/4/45/Lulea_Kirche.jpg/798px-Lulea_Kirche.jpg

And nearby Boden....



User currently offlineJoost From Netherlands, joined Apr 2005, 3149 posts, RR: 4
Reply 14, posted (5 years 8 months 6 days 8 hours ago) and read 1335 times:



Quoting MarcoPoloWorld (Reply 13):
Anyways, all I'm suggesting is for the opportunity of one or perhaps two daily nonstops to a major hub from a "major" provincial city in Scandinavia.....

This is actually a growing market. New this summer:
LH: FRA-BGO
KL: AMS-LPI

Also, KLM has been increasing services to Norway quite regularly. Starting this winter, AMS-TRD will be upgraded to 2xF100 (up from 2xF70) and all the other Norwegian destinations also see high frequencies.

It would be nice indeed to see for example a 2xF70 pattern to AMS-LLA, or some Avro's on FRA-LLA.


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