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SAS To Put SGH Up For Sale  
User currently offlineg2scandinavia From Norway, joined Jun 2010, 535 posts, RR: 1
Posted (1 year 11 months 1 week 7 hours ago) and read 9986 times:

The employees where informed this week that their ground handling division SGH, will be put up for sale next week.
If SAS are not able to find a buyer within a short period of time, the company Will be shut down.

Star Alliance member Thai Airways have already signed a new contract with Menzies for their operations at ARN and OSL, ending a long relationship with SGS (SAS handling).

Sources at several news agencies says that negotiations between SAS and the Scandinavian governments have not resulted in a promise of further capital renewal. According to the same source, Sweden especially have stated that they will
not save the company once more. Not surprising as the Swedish goverment also rejected to bail SAAB.

Rumor is now that SAS will present a severe reduction of its workforce in September. The news agencies says that SAS also are preparing to sell two other parts of the company. From what I know, and correct me if I'm wrong, only SAS Cargo, SAS Tech, Air Greenland and Estonian are left. It would surprise me if Widerøe or Blue1 are one of the candidates.





[Edited 2012-08-22 23:43:32]

25 replies: All unread, showing first 25:
 
User currently offlineSomeone83 From Norway, joined Sep 2006, 3311 posts, RR: 3
Reply 1, posted (1 year 11 months 1 week 7 hours ago) and read 9978 times:

Btw, SGS was renamed SGH a few years ago  

User currently offlineCPHFF From Sweden, joined Aug 2011, 140 posts, RR: 0
Reply 2, posted (1 year 11 months 1 week 4 hours ago) and read 9548 times:

Not to rant, but we have heard this so many times before from SAS Group. "We shall focus on our core business = flying passangers". From 2005 - 2011They have sold out (or liquidated) just about all side business interests (Hotel chains etc.), but still they are losing money. The fundamental problem is that their "core business" model is faulty.

Reading their Mission-Vision-Objectives on their website, there isn't many things going right. Not evern punctuality any more.

Link:

http://www.sasgroup.net/SASGroup/default.asp

I love SK and their route network, but I'm becoming more and more of a non-believer of their long-term survivability.



Detroit is bankrupt. Don't forget to thank UAW folks!
User currently offlineIndianicWorld From Australia, joined Jun 2001, 2916 posts, RR: 0
Reply 3, posted (1 year 11 months 1 week 3 hours ago) and read 9338 times:

Quoting CPHFF (Reply 2):
The fundamental problem is that their "core business" model is faulty.

We have a winner!  

You can only strip so much out to make things work, but reality must be a harsh feeling for them currently.

Theres a few carriers in the same position as them currently, including QF, on a long road to nowhere at this rate, with cuts, cuts and more cuts to stop the bleeding which isn't looking like stopping. Unfortunately SAS also has the issue of its government ownership stakes, which brings politics to the table. Not easy.


User currently offlineSomeone83 From Norway, joined Sep 2006, 3311 posts, RR: 3
Reply 4, posted (1 year 11 months 1 week 3 hours ago) and read 9338 times:

It might happen, but those I know in SGH has not heard anything about this

User currently offlineokAY From Finland, joined Dec 2006, 652 posts, RR: 0
Reply 5, posted (1 year 11 months 1 week 3 hours ago) and read 9305 times:

Sounds a bit like a move from the employers side to scare off the employee side. Is there any industrial actions going on? Strike threath or something? The exact same situation is on the other side of the pond, AY has wanted to get rid of Northport (AY's ground handling company) for years. So far all attempts to sell has failed and someone has to check in those passengers. More likely is that someone buys SGH, I would be very suprised to see option no.2 being materialised. Any ideas who would be interested in SGH?

okAY


User currently offlineteme82 From Finland, joined Mar 2007, 1481 posts, RR: 0
Reply 6, posted (1 year 11 months 1 week 3 hours ago) and read 9194 times:
Support Airliners.net - become a First Class Member!

Quoting okAY (Reply 5):
So far all attempts to sell has failed and someone has to check in those passengers.

I was under the impression that Swissport have already bought Northport.



Flying high and low
User currently offlineokAY From Finland, joined Dec 2006, 652 posts, RR: 0
Reply 7, posted (1 year 11 months 1 week 2 hours ago) and read 9119 times:

Quoting teme82 (Reply 6):

As far as I have understood the deal with Swissport only includes baggage handling operations (to be sold by Barona), not check in/gate ops. Have I misunderstood?

okAY


User currently offlineg2scandinavia From Norway, joined Jun 2010, 535 posts, RR: 1
Reply 8, posted (1 year 11 months 1 week ago) and read 8666 times:

More info presented by Hangar.no (in norwegian only)

Quote:
I et forsøk på ytterligere å forbedre økonomien i SAS har de ansatte i bakkeselskapet SGS blitt informert om at selskapet blir lagt ut for salg.

De ansatte ble informert om dette i et møte på tirsdag. I følge kilder Hangar.no har snakket med vil det bli aktuelt å se på muligheter for å legge ned selskapet i sin helhet dersom et salg ikke skulle lykkes.

SAS har forsøkt seg på å selge SGS i flere omganger men ikke lykkes i dette arbeidet, hver gang har det blitt snudd til at flyselskapet fortsetter driften av bakkeselskapet gjennom sitt datterselskap.

SAS har ikke ønsket å kommentere saken overfor Hangar.no men viser til at det vil komme mer informasjon når saken er avklart.
http://www.hangar.no/sas-legger-sgs-ut-for-salg/


User currently offlineLN-MOW From United States of America, joined Jan 2000, 1908 posts, RR: 14
Reply 9, posted (1 year 11 months 6 days 23 hours ago) and read 8563 times:

Quoting g2scandinavia (Thread starter):
The employees where informed this week that their ground handling division SGH, will be put up for sale next week.
If SAS are not able to find a buyer within a short period of time, the company Will be shut down.

This is positively not true. Noone has been informed about anything., Hangar.no is probably using your first post as his source - that would fit with the way that site operates.



- I am LN-MOW, and I approve this message.
User currently offlinesenatorflyer From UK - England, joined Jul 2012, 33 posts, RR: 0
Reply 10, posted (1 year 11 months 6 days 21 hours ago) and read 8367 times:

Just out of interests, what are the main problems of the SAS Group in your views?

User currently offlineLN-KGL From Norway, joined Sep 1999, 1005 posts, RR: 4
Reply 11, posted (1 year 11 months 6 days 19 hours ago) and read 7810 times:

There is an important part of the Hangar article you are missing MOW, please look once more at the last paragraph.
I'll try to translate in to English what was said:
"SAS don't wish to give any comment in this case to Hangar.no, but are refering to more information that will be published when this case has been cleared/settled." (avklart can mean a lot - but I have chosen only two)
It can't be said any clearer. This must be one of the cases SAS is working on to try to save the ship.


User currently offlinebjorn14 From Norway, joined Feb 2010, 3381 posts, RR: 2
Reply 12, posted (1 year 11 months 6 days 17 hours ago) and read 7204 times:

Quoting senatorflyer (Reply 10):
Just out of interests, what are the main problems of the SAS Group in your views?

Oh where do I begin?

Too many airplane types (currently about 8)

Generally Scandinavians like to fly North-South thus the need for serving three major hubs and at least 3 focus cities in countries whose population totals 18M. Generally good roads and rail networks in 2 of the 3 countries.

Legacy costs and tough Danish unions.

Three government owners control roughly 60%

Tough LCC competition in core markets

Just a few thoughts.



"I want to know the voice of God the rest is just details" --A. Einstein
User currently offlineokobjorn From Denmark, joined Jun 2011, 36 posts, RR: 0
Reply 13, posted (1 year 11 months 6 days 17 hours ago) and read 7137 times:

@bjorn14:
The three Scandinavian governments hold exactly 50%.
DK 2/14 = 14.3%;
NO 2/14 = 14.3%;
SE = 3/14 = 21.4%


User currently offlineAirlineCritic From Finland, joined Mar 2009, 699 posts, RR: 1
Reply 14, posted (1 year 11 months 6 days 17 hours ago) and read 7086 times:

Quoting g2scandinavia (Thread starter):

The employees where informed this week that their ground handling division SGH, will be put up for sale next week.
If SAS are not able to find a buyer within a short period of time, the company Will be shut down.

That's a great way to provoke interest in potential buyers. "It is such a disaster that we don't want to operate it for a second, but if you buy it then..."

I'm guessing this is just tactics to force governments pump more money to the SAS group. At the last moment, an investment will be made and the employees (voters) are spared.


User currently offlineLN-MOW From United States of America, joined Jan 2000, 1908 posts, RR: 14
Reply 15, posted (1 year 11 months 6 days 17 hours ago) and read 6885 times:

Quoting LN-KGL (Reply 11):
There is an important part of the Hangar article you are missing MOW

I missed nothing, this is standard phraseology. SAS has always been open to offload SGS should the right offer appear. Maybe this is the time - maybe not. A couple of ground handlers have been interested in SGS for a long time, and although they may have expressed deeper interest, we won't get any other answer until SAS is ready to talk.

What I beleive sparked this, is that Havas, who have expanded dramatically in Northern Europe recently, have expressed interest in entering the market. This could be by starting on their own - or by a takeover. And they may be willing to pay good money for SGS.

We shall see ...



- I am LN-MOW, and I approve this message.
User currently offlineTristarsteve From Sweden, joined Nov 2005, 3977 posts, RR: 34
Reply 16, posted (1 year 11 months 6 days 16 hours ago) and read 6704 times:

Quoting LN-MOW (Reply 15):
What I beleive sparked this, is that Havas, who have expanded dramatically in Northern Europe recently, have expressed interest in entering the market. This could be by starting on their own - or by a takeover

Havas already have a sizeable operation at ARN.


User currently offlineLN-MOW From United States of America, joined Jan 2000, 1908 posts, RR: 14
Reply 17, posted (1 year 11 months 6 days 16 hours ago) and read 6686 times:

They're moving faster than I manage to keep track of ...   


- I am LN-MOW, and I approve this message.
User currently offlinepadster From United Kingdom, joined Nov 2005, 76 posts, RR: 0
Reply 18, posted (1 year 11 months 6 days 15 hours ago) and read 6377 times:

Quoting bjorn14 (Reply 12):

Quoting senatorflyer (Reply 10):
Just out of interests, what are the main problems of the SAS Group in your views?

Oh where do I begin?

Too many airplane types (currently about 8)

Generally Scandinavians like to fly North-South thus the need for serving three major hubs and at least 3 focus cities in countries whose population totals 18M. Generally good roads and rail networks in 2 of the 3 countries.

Legacy costs and tough Danish unions.

Three government owners control roughly 60%

Tough LCC competition in core markets

And to add for a star alliance member a very poor customer experience in Y class .... Lufthansa = legacy airline full service ,

SAS = legacy airline , easyjet service ... only saving grace is a free cup of poor coffee ... :/

As far as Norway is concerned ..Also no domestic star alliance lounges domestically... which is rubbish ! or even at Oslo airport !?! ... why does Star alliance even allow this ??

Maybe it would be better if this airline was broken up ... as it is not working for the customers the way it is ... and such a shame when i remember what a good airline SAS used to be !


User currently offlineg2scandinavia From Norway, joined Jun 2010, 535 posts, RR: 1
Reply 19, posted (1 year 11 months 6 days 7 hours ago) and read 5082 times:

Quoting LN-MOW (Reply 9):
This is positively not true. Noone has been informed about anything.

I'm ipressed that you have been able to confront all 4.000 employees within a time frame of 3 hours  

I think you are overestimate your own knowledge of what have been presented this week behind some closed doors!

I would rather recomend you to stay tuned for what is soon to be presented!


User currently offlineokAY From Finland, joined Dec 2006, 652 posts, RR: 0
Reply 20, posted (1 year 11 months 6 days 6 hours ago) and read 5044 times:

Quoting AirlineCritic (Reply 14):

As I wrote before I smell political game a mile away.. There is really no rational/business reason for SK to bring up the selling of SGH to surface now, or at least no more reason than what they have had all along. I was thinking strike threath but SK being afraid of the three governments closing their money pipes sounds just as good reason for SK management to make noise about selling or shutting down a division (job cuts, something politicians do not want, usually at least) within the company to demonstrate how bad things are. A bit like a kid showing grumpy face to a parent saying no to candy. I would like to ask SK in case they decide to close down the division, what happens to SK ground ops then? Flights need to depart with passengers and luggage on them. Is SK on final stages of closing a deal with another ground handling company to offer these services at all airports included in this matter?

okAY


User currently offlineTreg From Estonia, joined Oct 2001, 537 posts, RR: 0
Reply 21, posted (1 year 11 months 6 days 5 hours ago) and read 4961 times:

Quoting g2scandinavia (Thread starter):
correct me if I'm wrong, only SAS Cargo, SAS Tech, Air Greenland and Estonian are left.

They have only 5% share (or similar in Estonian), i.e. almost nothing.


User currently offlineg2scandinavia From Norway, joined Jun 2010, 535 posts, RR: 1
Reply 22, posted (1 year 11 months 6 days 5 hours ago) and read 4960 times:

Quoting Treg (Reply 21):

They have only 5% share (or similar in Estonian), i.e. almost nothing.

Thank's for the correction Treg!


User currently offlineLN-MOW From United States of America, joined Jan 2000, 1908 posts, RR: 14
Reply 23, posted (1 year 11 months 5 days 20 hours ago) and read 4646 times:

Quoting g2scandinavia (Reply 19):
I think you are overestimate your own knowledge of what have been presented this week behind some closed doors!

Then maybe you should have presented it differently .... Union leaders may have been briefed, but there were no information issued to employees.

Quoting g2scandinavia (Thread starter):
The employees where informed this week that their ground handling division SGH, will be put up for sale next week.

We'll see what happens next week.



- I am LN-MOW, and I approve this message.
User currently offlineg2scandinavia From Norway, joined Jun 2010, 535 posts, RR: 1
Reply 24, posted (1 year 11 months 4 days 23 hours ago) and read 4313 times:

More info presented @ Boarding.no this morning.

Quote:
SAS vurderer salg av bakketjenestene. Internasjonale aktører som  Menzies Avation, Havas Handling og Swissport skal ha vist interesse for å kjøpe SGH - SAS Ground Handling. De ansatte i Oslo og Stockholm ble denne uken informert om de "nygamle"  salgsplanene. Mandag står København for tur.
http://boarding.no/art.asp?id=50925


User currently offlinekyrone From United States of America, joined Mar 2011, 126 posts, RR: 0
Reply 25, posted (1 year 11 months 4 days 13 hours ago) and read 4083 times:

So SAS outsourced SGS (or really SAS in the US) to ASIG and Swissport, sold SGS UK to BBA (parent company of ASIG) and sold SGS Finland to ISS (if I remember correctly). Some of those moves did not make the most sense to me as a few of those stations/areas were pulling a profit or breaking even while ground handling other carriers; but I understand the company goal at the time was to divest of all ground handling activities outside of Scandinavia, regardless of if they were pulling a profit or not.

I'm curious on the following points:

1. Is SGH pulling a profit on ground handling other airlines in any of the Scandinavian Countries?
2. Do they intend to just sell of the branch ground handling other airlines, or do they intend to also sell off the branch handling Scandinavian Airlines flights as well?
3. Are there any legacy airlines that have completely outsourced the handling of their own flights at their home station, and has that worked out well for them?

There is profit to be made in third party ground handling if you are willing to think outside the box, and have management that is proactive, instead of reactive. Although competition is stiff, SAS/SGS/SGH had an excellent reputation and ground handling product. If I'm not mistaken, the company branch in the UK did a particularly good job of turning the business around and was able to create a profitable business prior to being sold to BBA.


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