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Bloomberg: CEO Prepares SAS For Sale  
User currently offlineoykie From Norway, joined Jan 2006, 2685 posts, RR: 4
Posted (4 years 1 month 2 days 23 hours ago) and read 7991 times:

According to the Bloomberg, SAS CEO prepares the company for sale. He says 65-70% of Core SAS improvementprogram is complete. The shortterm goal is to generate a positive cashflow for SAS and get enought cash reserve by next year. This combined with reaching their unit cost goal will be the perfect time for a takeover he says. They have reached some important milestones recently to generate positive cashflow. In May they increased their loadfactor by 4 p. u. vs 2009 to 75.6% and they have no more new planes for delivery.

Read the whole article and interview here.

bloomberg news update 2: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=auEKTvC5OCz0


Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
17 replies: All unread, jump to last
 
User currently offlinesunking737 From United States of America, joined Feb 2005, 2036 posts, RR: 8
Reply 1, posted (4 years 1 month 2 days 21 hours ago) and read 7771 times:

Sounds like he maybe offering SAS to Ryan? It would be sad to see SAS gone. They have been around a long long time.


Just an MSPAVGEEK
User currently offlineBurkhard From Germany, joined Nov 2006, 4378 posts, RR: 2
Reply 2, posted (4 years 1 month 2 days 21 hours ago) and read 7736 times:

There is place for 3 to 4 network carriers in Europe only, named AF, BA, LH and TK. Either of these can take SA . To improve competition, TK might be the best choice for them.

don't see anybody outside airline industry to take them.


User currently offlineoykie From Norway, joined Jan 2006, 2685 posts, RR: 4
Reply 3, posted (4 years 1 month 2 days 19 hours ago) and read 7451 times:

Quoting sunking737 (Reply 1):
Sounds like he maybe offering SAS to Ryan? It would be sad to see SAS gone. They have been around a long long time.

Let us hope it is not them....   I would not expect to se the name go. In Europe it has been kind of a tradition to keep the different airlines name, but merge the airline otherwise. Hope the same happens in the case of SAS.

Quoting Burkhard (Reply 2):
There is place for 3 to 4 network carriers in Europe only, named AF, BA, LH and TK. Either of these can take SA . To improve competition, TK might be the best choice for them.

don't see anybody outside airline industry to take them.

This is true. SAS is left alone. I believe they will have sold before they order any new airplane. Personally I would prefer Lufthansa buys them as they have a long history of co operation. However for the sake of competition among alliances AF and BA might be tempted to make a bid. Or as you say TK or some middle east carrier. Anyway. It will be interesting to see how this ends up.



Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
User currently offlinecolumba From Germany, joined Dec 2004, 7054 posts, RR: 4
Reply 4, posted (4 years 1 month 2 days 18 hours ago) and read 7313 times:

Quoting oykie (Reply 3):
I would prefer Lufthansa buys them
LH wants to battle against EK so they have to grow. With SAS, Air Dolimiti, LH Italy SN, Swiss and BMI they would cover a huge share of Europe. They would only need a carrier from Spain or Portugal maybe TAP.

[Edited 2010-06-09 06:46:55]


It will forever be a McDonnell Douglas MD 80 , Boeing MD 80 sounds so wrong
User currently offlineBurkhard From Germany, joined Nov 2006, 4378 posts, RR: 2
Reply 5, posted (4 years 1 month 2 days 18 hours ago) and read 7279 times:

Wouldn't they get Spanair for free? Or has SA sold them already, and I missed that.

User currently offlineUAL777UK From United Kingdom, joined Nov 2005, 3356 posts, RR: 1
Reply 6, posted (4 years 1 month 2 days 18 hours ago) and read 7247 times:

I would be really surprised if LH did not make a play for them and bring them into the LH group. I would also not want them to go from the *A. As for BA, I think they have enough on their plate to even consider making a play for them but one thing I have learnt from aviation is...."never say never!"

User currently offlineoykie From Norway, joined Jan 2006, 2685 posts, RR: 4
Reply 7, posted (4 years 1 month 2 days 18 hours ago) and read 7166 times:

Quoting columba (Reply 4):
They would only need a carrier from Spain or Portugal maybe TAP.

   They would then be a true European airlines. If not TAP then maybe as Burkhard says - Spanair...

Quoting Burkhard (Reply 5):
Wouldn't they get Spanair for free? Or has SA sold them already, and I missed that.

SAS is just a minority owner. They sold either 80,1% of the stock. They are left with 19,9%. With the low performance on Spanair, it might be better to let Lufthansa set up Lufthansa Spain, or SAS Spain  
Quoting UAL777UK (Reply 6):
one thing I have learnt from aviation is...."never say never!"

   So true!



Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
User currently offlinerealsim From Spain, joined Apr 2010, 645 posts, RR: 0
Reply 8, posted (4 years 1 month 2 days 17 hours ago) and read 7122 times:

Quoting oykie (Reply 7):
SAS is just a minority owner. They sold either 80,1% of the stock. They are left with 19,9%. With the low performance on Spanair, it might be better to let Lufthansa set up Lufthansa Spain, or SAS Spain

With Ryanair opening a base in BCN in a few months, I doubt LH would be interested in JK, as they would have to compete against Ryanair and Vueling (Iberia) in an overcrowded market. However, if JK fails in this battle, a takeover could be quite cheap for them. We will see...


User currently offlinecolumba From Germany, joined Dec 2004, 7054 posts, RR: 4
Reply 9, posted (4 years 1 month 2 days 17 hours ago) and read 7058 times:

Quoting realsim (Reply 8):
With Ryanair opening a base in BCN in a few months, I doubt LH would be interested in JK, as they would have to compete against Ryanair and Vueling (Iberia) in an overcrowded market. However, if JK fails in this battle, a takeover could be quite cheap for them.

I don´t believe Ryanair is such a threat for LH. LH wants connecting passengers for their long haul flight and the passenger won´t fly with Ryanair to Hahn and then take the Bus to FRA.

LH´s main opponent is EK not Ryanair.



It will forever be a McDonnell Douglas MD 80 , Boeing MD 80 sounds so wrong
User currently offlineSomeone83 From Norway, joined Sep 2006, 3284 posts, RR: 3
Reply 10, posted (4 years 1 month 2 days 16 hours ago) and read 6902 times:

Quoting Burkhard (Reply 5):
Wouldn't they get Spanair for free? Or has SA sold them already, and I missed that.

Spanair has been sold or more accurate; given away


Anyway, this is old news, which gets recycled a few times each year, this time by Bloomberg


User currently offlineoykie From Norway, joined Jan 2006, 2685 posts, RR: 4
Reply 11, posted (4 years 1 month 2 days 15 hours ago) and read 6658 times:

Quoting realsim (Reply 8):
With Ryanair opening a base in BCN in a few months, I doubt LH would be interested in JK, as they would have to compete against Ryanair and Vueling (Iberia) in an overcrowded market. However, if JK fails in this battle, a takeover could be quite cheap for them. We will see...

it is true that the market is overcrowded and Spain is not really booming now. But the same goes for Italy. It was crowded, and LH still entered the market with LH Italia. However LH was in a better shape financially when LH Italia was launched.

Quoting Someone83 (Reply 10):
Anyway, this is old news, which gets recycled a few times each year, this time by Bloomberg

This is not old news. It has as you say been reported several times that SAS would be better of sold. However the last time we heared about it from the CEO he said, that for now they would not try to be sold to a competitor. They really needed to do the CoreSAS program on their own. With him telling this to Bloomberg on the 8th of june is now a news story, as it differs from what he said not long ago.



Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
User currently offlineluxair747SP From Germany, joined May 2010, 504 posts, RR: 18
Reply 12, posted (4 years 1 month 2 days 13 hours ago) and read 5883 times:

LH would be very good because their longhaul fleet has the same birds ( A330 and A340-300 ) as SAS, so they would fit perfect into the LH group

User currently offlineLJ From Netherlands, joined Nov 1999, 4400 posts, RR: 0
Reply 13, posted (4 years 1 month 2 days 13 hours ago) and read 5618 times:

Quoting columba (Reply 4):
LH wants to battle against EK so they have to grow. With SAS, Air Dolimiti, LH Italy SN, Swiss and BMI they would cover a huge share of Europe. They would only need a carrier from Spain or Portugal maybe TAP.

The question is whether LH has the resources (not only financially) to buy SK. Already LH has its hands full with turning around OS and BD. Furthermore, if this is done they will probably excercise their option to buy the remaining part in SN.


User currently offlineskyguyB727 From , joined Dec 1969, posts, RR:
Reply 14, posted (4 years 1 month 2 days 4 hours ago) and read 3292 times:

Quoting Burkhard (Reply 2):
There is place for 3 to 4 network carriers in Europe only, named AF, BA, LH and TK. Either of these can take SA
Quoting Burkhard (Reply 5):
Or has SA sold them already, and I missed that.

First, I think you meant SK. I don't think South African Airways is involved in this.

Second, is TK really a big player in European aviation? One does not hear as much about them as, say, AF, BA, KL, or LH.


User currently offlineflood From United States of America, joined Feb 2009, 1381 posts, RR: 1
Reply 15, posted (4 years 1 month 2 days 3 hours ago) and read 3217 times:

Quoting columba (Reply 4):
With SAS, Air Dolimiti, LH Italy SN, Swiss and BMI they would cover a huge share of Europe. They would only need a carrier from Spain or Portugal maybe TAP.

That said, would Brussels readily approve a SAS/TAP takeover by LH?


User currently offlineBurkhard From Germany, joined Nov 2006, 4378 posts, RR: 2
Reply 16, posted (4 years 1 month 2 days ago) and read 2477 times:

Quoting flood (Reply 15):
That said, would Brussels readily approve a SAS/TAP takeover by LH?

Both might be a little much, but LH group is smaller than AF group currently. But it is true that LH has a lot of homework to be done on what they purchased already.


User currently offlineWAC From United States of America, joined Nov 2008, 275 posts, RR: 0
Reply 17, posted (4 years 1 month 1 day 22 hours ago) and read 2226 times:

I think IKEA will buy SAS and it will be re-branded FLY- IKEA and you can buy furniture whilst you fly, and their aircraft are fitted in an IKEA style. A real Scandinavian way of flying!  Imagine the revenues they could make out of IKEA Duty Free on long haul travel! They would be able to subsidies the long haul network!

More seriously, I don't think any of the big airline groups want to buy SAS at the mo.
Scandavian
LH: the aviation market isn't in the best conditions, and they have plenty on their hands, as many said. Also I just don't see LH want SAS at the mo. It doesn't stand to gain anything. SN and LX were outside both S* and there was no partneship with them. BMII they were forced to buy and tried everything to postpone or get out of the buying contract. OS they bought cos their rivals AF-KL were after them, and OS offers better synergies with LH/LX than SAS will ever have.
AF: They could get them. But I think the recent performance of the group, mainly due to fuel hedging and freight, will put their shareholders in a dubious mood on whether to take over the group in a time of under performance and taking on more debt.
BA: HHAAHA no more to say (Pension deficit, in the process of BA-IB preoject and AA-BA-IB project, and rather sour relationship with trade uniions).

I would think a consortium of Scandinavian business will take it over with an airline group investing a share within the airline, Rather like the AZ affair. This would also suit the politics of SAS and the respective countries. Later on the airline group would probably buy it over once re-structuring and markets pick up.


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