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The Beginning Of The End For SAS  
User currently offlineSKAirbus From Norway, joined Oct 2007, 1669 posts, RR: 1
Posted (1 year 8 months 2 weeks 3 days 22 hours ago) and read 1881 times:

For years SAS has introduced austerity measures after austerity measures, cut jobs, sold subsiduaries but now it looks like it is last chance saloon for the ailing flag carrier of three countries. In reality the airline is bleeding cash and not much can be done to stop it. Also, with militant unions in especially Denmark and Norway, any cost-cutting is very hard to push through and SAS staff are on average paid well in excess of the industry averages.

SAS have for some unknown reason refused to publish its quarterly results, pushing this back until Monday. Many assume that this is because SAS is seeking EU approval for the three Scandinavian governments to guarantee loan-extentions provisionally agreed by six banks. This would give the airline some breathing space to restructure. However, the EU could (and in my opinion are likely to) rule this as being illegal state aid. Norwegian are staunchly opposed to any state aid although as joint-owners of the airline there is an argument that the Scandinavian governments are within their rights to support the carrier.

Will SAS survive the next year? Could creating individual national carriers be a solution?

News article from NRK (in Norwegian): http://www.nrk.no/okonomi/eu-avgjor-skjebnen-til-sas-1.8390490

News article from DR (in Danish): http://www.dr.dk/Nyheder/Penge/2012/11/09/093709.htm


Next Flights: LGW-SVG (738-DY), SVG-LHR (319-BA), LHR-HKG (388-BA), HKG-SYD (333-CX), SYD-HKG (333-CX), HKG-LHR (388-BA)
41 replies: All unread, showing first 25:
 
User currently offlinesweair From Sweden, joined Nov 2011, 1811 posts, RR: 0
Reply 1, posted (1 year 8 months 2 weeks 3 days 22 hours ago) and read 1897 times:

DK can revive the Sterling Brand, Norway has its Norwegian and Sweden could buy into either Sterling or Norwegian to make sure some traffic flows our way.

Sterling was my favorite Airline, nice crews and good prices   Their prices were too good I guess.


User currently offlinesolnabo From Sweden, joined Jan 2008, 850 posts, RR: 2
Reply 2, posted (1 year 8 months 2 weeks 3 days 21 hours ago) and read 1908 times:

The NEO´s out the window!

//Mike         



Airbus SAS - Love them both
User currently offlineteme82 From Finland, joined Mar 2007, 1481 posts, RR: 0
Reply 3, posted (1 year 8 months 2 weeks 3 days 21 hours ago) and read 1916 times:
Support Airliners.net - become a First Class Member!

If SK goes belly up I think AY will launch some kind of airline in Sweden. Either with co-operating with FlyBe or alone.  


Flying high and low
User currently offlineKC135Hydraulics From United States of America, joined Nov 2012, 289 posts, RR: 0
Reply 4, posted (1 year 8 months 2 weeks 3 days 21 hours ago) and read 1913 times:

Sounds like the middle of the end rather the beginning. This has all been in the works for a long time.

User currently offlinekl911 From Ireland, joined Jul 2003, 5119 posts, RR: 12
Reply 5, posted (1 year 8 months 2 weeks 3 days 20 hours ago) and read 1913 times:

Quoting sweair (Reply 1):
DK can revive the Sterling Brand, Norway has its Norwegian and Sweden could buy into either Sterling or Norwegian to make sure some traffic flows our way.

Don't forget about Ryanair opening bases immediately in ARN, CPH and OSL like they did with the Malev - Budapest scenario. They have quite some 737's parked.



Next trip : DUB-AUH-CGK-DPS-KUL-AUH-CDG-ORK :-)
User currently offlineZRH From Switzerland, joined Nov 1999, 5566 posts, RR: 36
Reply 6, posted (1 year 8 months 2 weeks 3 days 20 hours ago) and read 1913 times:

Unfortunately it is fact in our days that an airline in this size can not survive alone when it wants to be a network airline with long- and short-haul. SWISS only survived and makes such good results because she is under the wings of LH. Also OS failed. Most others are big (LH, AIG, AF-KL, TK), are low-cost or niche airlines.

User currently offlinetoobz From Finland, joined Jan 2010, 767 posts, RR: 0
Reply 7, posted (1 year 8 months 2 weeks 3 days 19 hours ago) and read 1916 times:

SK is just giving it away. Been checking flights from LHR/AMS-HEL and SK come up waaaay cheaper than anyone else. Even DY is coming up more expensive.

User currently onlinesteman From Germany, joined Aug 2000, 1366 posts, RR: 7
Reply 8, posted (1 year 8 months 2 weeks 3 days 19 hours ago) and read 1913 times:

This is so sad.
Such a history rich airline and an earyl example of european collaboration.
If they shut down I hope somebody will make sure the brand and name can be
preserved and maybe in the future used again.

Good luck to SAS and its people.


User currently onlineKiwiRob From New Zealand, joined Jun 2005, 7112 posts, RR: 3
Reply 9, posted (1 year 8 months 2 weeks 3 days 15 hours ago) and read 1913 times:

Quoting solnabo (Reply 2):
The NEO´s out the window!

It doesn't mention that in either article.

For those that don't read Scandinavian here is an article in English

http://www.newsinenglish.no/2012/11/...sas-postpones-crisis-plan-release/

[Edited 2012-11-09 08:26:04]

User currently offlinesweair From Sweden, joined Nov 2011, 1811 posts, RR: 0
Reply 10, posted (1 year 8 months 2 weeks 3 days 13 hours ago) and read 1916 times:

Sk keeps selling its assets, but then what, when there is nothing more to sell?! It is better to try to find a merger partner as long as there is something left of SK.

User currently offlinekyrone From United States of America, joined Mar 2011, 126 posts, RR: 0
Reply 11, posted (1 year 8 months 2 weeks 3 days 5 hours ago) and read 1910 times:

Shame to see another iconic brand going the way of Pan AM, TWA, Eastern, and so many others...

User currently offlineglobetraveller From Germany, joined Apr 2008, 379 posts, RR: 20
Reply 12, posted (1 year 8 months 2 weeks 2 days 22 hours ago) and read 1913 times:

Quoting toobz (Reply 7):
SK is just giving it away. Been checking flights from LHR/AMS-HEL and SK come up waaaay cheaper than anyone else. Even DY is coming up more expensive.

They are giving seats away and still not filling the cabins. I was on a LHR-CPH flight recently and the load must have been below 30%. I think that says alot.


User currently offlinesweair From Sweden, joined Nov 2011, 1811 posts, RR: 0
Reply 13, posted (1 year 8 months 2 weeks 2 days 22 hours ago) and read 1914 times:

I met some swedes in Spain that had gone with SK to ALC and a lot cheaper than me with IB, I didn't even know they flew that route, they ended it long ago but it is back. Maybe a bit of marketing would have helped in this case, I didn't check their site as I knew they didn't fly that route..but they do..

They have been the "expensive" choice for many for so long this view of SK lives strong in many people. I don't know a single swede that would travel with SK above any competitor, there is just not enough tradition left to keep its customers. Norwegian has modern nice planes with free wifi etc And they go on many routes SK doesn't any more.

I think SK had the wrong attitude in the wrong market for a long time, its almost as customers existed for their behalf not the other way around. Be happy that you can fly with SK sort of culture.


User currently offlineyp6370 From Germany, joined Apr 2000, 197 posts, RR: 0
Reply 14, posted (1 year 8 months 2 weeks 2 days 21 hours ago) and read 1912 times:

Quoting globetraveller (Reply 12):
They are giving seats away and still not filling the cabins. I was on a LHR-CPH flight recently and the load must have been below 30%. I think that says alot.

Individual experiences of single flights don't say anything about the state of an airline.
My last SAS flight was 100% full but that doesn't mean, they achieved a sufficient yield.

I just like to wait for the official numbers to be announced.


User currently onlineKiwiRob From New Zealand, joined Jun 2005, 7112 posts, RR: 3
Reply 15, posted (1 year 8 months 2 weeks 23 hours ago) and read 1904 times:

Quoting sweair (Reply 13):
They have been the "expensive" choice for many for so long this view of SK lives strong in many people.

Once you add in reserving a seat and paying for baggage SAS normally works out cheaper than Norwegian.


User currently offlineEBGflyer From Denmark, joined Sep 2006, 997 posts, RR: 0
Reply 16, posted (1 year 8 months 2 weeks 22 hours ago) and read 1904 times:

Quoting globetraveller (Reply 12):

No, it doesn't actually. You have to look at the average load factor and it is not as critical as you are saying. You have to count in that some return flights load might be light in one direction and full in the other. That seems to be the case with typical one-day meeting destinations, where passengers are being 'picked up' by an half full plane and then going home full.

[Edited 2012-11-12 00:45:37]


Future flights: CPH-BRU-CPHx2; CPH-BKK-MNL; MNL-GUM-HNL-LAX
User currently offlineBNE From Australia, joined Mar 2000, 3173 posts, RR: 12
Reply 17, posted (1 year 8 months 2 weeks 22 hours ago) and read 1902 times:

I wouldn't be surprised if SAS didn't work in closer with LH.

It seems that with old airlines unless they can almost reinvent themselves or in the US case go broke every few years then you have so many rules and regulations that tie you down that you find hard to get rid of.



Why fly non stop when you can connect
User currently offlineimiakhtar From , joined Dec 1969, posts, RR:
Reply 18, posted (1 year 8 months 2 weeks 20 hours ago) and read 1904 times:

Here are the links to the released reports:

http://se.yhp.waymaker.net/sasgroup/con-all.asp#

SAS launches comprehensive plan to improve profitability and secure long-term financial preparedness - new union agreements must be signed in the near future

Targeting approximately 3 bn SEK of annual improvement from cost reductions and organizational restructuring and approximately 3 bn SEK increased liquidity from asset sales ~ New 3.5 bn SEK Revolving Credit Facility from Banks and Core Shareholders to secure financial preparedness conditional on signed union agreements and parliamentary approvals ~The Board unanimously supports the plan and recommends all employees to do the same ~ The Board will meet again on Sunday November 18, 2012 to decide if the conditions for the implementation of the plan exist


[Edited 2012-11-12 03:17:14]

User currently onlineTC957 From UK - England, joined May 2012, 801 posts, RR: 0
Reply 19, posted (1 year 8 months 2 weeks 20 hours ago) and read 1904 times:

I'm wondering if SAS should just concentrate on long-haul and domestic feed to it and leave inter-european services to Norwegian et all. Odd that AY seems to be doing so well and SK is in such a pickle.

User currently offlineTomFoolery From Austria, joined Jan 2004, 528 posts, RR: 2
Reply 20, posted (1 year 8 months 2 weeks 17 hours ago) and read 1904 times:

I flew with them 2 years ago, and found them to be a pretty nice airline. I flew with them 2 weeks ago, and was really disappointed with the product. The MD82 was in fair enough shape (for the age), but I found it really gross to find chewing gum in the seat pocket, all over the magazine, barf bag, and my newspaper. My connecting flight also found a wad of gum under my armrest and dried soda on the tray table.

The first flight was a 45 minute turn around time in MUC, which for an MD82, is plenty of time to tidy up. Not a great impression.

Not sure how to gauge SAS to other carriers.

Intra Europe:
Water, Tea, Coffee = Free
Buy on board for all other items (Prices only noted in DKK, NOK, SEK)
One checked bag = Free
Seat Selection= Sometimes it works on line, other times not until at the airport.

Not quite LCC, not quite Full service.

IB is the closest I can think of.



Paper makes an airplane fly
User currently offlinekyrone From United States of America, joined Mar 2011, 126 posts, RR: 0
Reply 21, posted (1 year 8 months 2 weeks 17 hours ago) and read 1904 times:

I'm curious if all these cuts will affect their SFO opening..

User currently onlineKiwiRob From New Zealand, joined Jun 2005, 7112 posts, RR: 3
Reply 22, posted (1 year 8 months 2 weeks 15 hours ago) and read 1903 times:

Quoting kyrone (Reply 21):
I'm curious if all these cuts will affect their SFO opening..

Hope not I've got tickets booked for July and August return.


User currently offlineMortyman From Norway, joined Aug 2006, 3835 posts, RR: 1
Reply 23, posted (1 year 8 months 2 weeks 14 hours ago) and read 1905 times:

Quoting TC957 (Reply 19):
Odd that AY seems to be doing so well and SK is in such a pickle.

AY don't have 35 unions in spread over 3 countries ...


User currently offlineviasa From Switzerland, joined Jun 2005, 1870 posts, RR: 6
Reply 24, posted (1 year 8 months 2 weeks 12 hours ago) and read 1903 times:

If SK will shut down it's operation, that would be a mess for many airports/destinations. For example is SK the only operator for the following destinations:

- Longyearbyen (LYR)
- Kalmar (KLR)
- Ronneby (RNB)
- Skellefteå (SFT)

And lot of routes within Scandinavia will be unserved.


User currently offlineMortyman From Norway, joined Aug 2006, 3835 posts, RR: 1
Reply 25, posted (1 year 8 months 2 weeks 12 hours ago) and read 2158 times:

Quoting viasa (Reply 24):
- Longyearbyen (LYR)

Norwegian will start flying to LYR fromk OSL in march.


User currently offlineRyanairGuru From Australia, joined Oct 2006, 5177 posts, RR: 4
Reply 26, posted (1 year 8 months 1 week 1 day 14 hours ago) and read 2239 times:

Quoting viasa (Reply 24):

Because these routes are so important to Norway I could see the government immediately nationalizing WF in the case of a bankruptcy. Presuming that it happens this week there is no way an agreement over its sale could be reached in time, and this would allow the Norwegian government to keep these routes open. If the chose to privatise it again down the line, then of course the can.

For long flights such as Oslo to Svalbard which are clearly beyond the range of a Dash, I provide subsidies to DY (or in fact anyone) to launch the flight ASAP



Worked Hard, Flew Right
User currently offlineThule From United States of America, joined Feb 2009, 100 posts, RR: 0
Reply 27, posted (1 year 8 months 1 week 1 day 13 hours ago) and read 2434 times:

Quoting Mortyman (Reply 25):
Norwegian will start flying to LYR fromk OSL in march.

Interesting to hear - looks like 3X weekly. Is there a press release anywhere? I'm wondering if DY plans to operate this route only seasonally as a summer tourist bus, or year round...

Quoting RyanairGuru (Reply 26):
Because these routes are so important to Norway I could see the government immediately nationalizing WF in the case of a bankruptcy. Presuming that it happens this week there is no way an agreement over its sale could be reached in time, and this would allow the Norwegian government to keep these routes open. If the chose to privatise it again down the line, then of course the can.

For long flights such as Oslo to Svalbard which are clearly beyond the range of a Dash, I provide subsidies to DY (or in fact anyone) to launch the flight ASAP

That would be the only option for LYR, wouldn't it? I'm guessing the current SK routes to LYR are heavily subsidized (but I could be wrong). A big part of the daily SK flights there is the cargo and of course the expertise required to fly in Svalbard weather conditions. Hopefully DY is up to the job if they need to take over!


User currently offlineAeroWesty From United States of America, joined Oct 2004, 20375 posts, RR: 62
Reply 28, posted (1 year 8 months 1 week 1 day 9 hours ago) and read 2499 times:

The end is nigh:

http://www.thelocal.se/44486/20121118/

• Downroute cabin crew advised to keep cash on hand to manage on their own
• Aircraft ordered to be fueled in order to make it back to base in case of a bankruptcy filing

Fairly ominous moves.



International Homo of Mystery
User currently offlinesouthwest737500 From , joined Dec 1969, posts, RR:
Reply 29, posted (1 year 8 months 1 week 1 day 9 hours ago) and read 2350 times:

What happens to Blue1

User currently offlineAsturias From Spain, joined Apr 2006, 2068 posts, RR: 16
Reply 30, posted (1 year 8 months 1 week 1 day 8 hours ago) and read 2311 times:

I hope SK pulls through, it is not just the name but the infrastructure that SK has that would be a real shame to lose.

An airline is an infrastructure and as such needs to be protected for the public interest.

I'm not sure privatizing SAS was a good move to begin with. It certainly was a dumb move with Iberia.



Tonight we fly
User currently offlineflyorski From United States of America, joined Dec 2004, 987 posts, RR: 1
Reply 31, posted (1 year 8 months 1 week 1 day 8 hours ago) and read 2308 times:

Flew SK a few times trans-atlantic. Always exceptional service and a really great time. I would hate to see them go.


"None are more hopelessly enslaved, than those who falsly believe they are free" -Goethe
User currently offlinePlymSpotter From Spain, joined Jun 2004, 11611 posts, RR: 60
Reply 32, posted (1 year 8 months 1 week 1 day 7 hours ago) and read 2261 times:

Quoting Mortyman (Reply 25):
Norwegian will start flying to LYR fromk OSL in march.
Quoting Thule (Reply 27):
Interesting to hear - looks like 3X weekly. Is there a press release anywhere? I'm wondering if DY plans to operate this route only seasonally as a summer tourist bus, or year round...

They flew it a few years ago, just in the summer - twice weekly IIRC.

Quoting Thule (Reply 27):
That would be the only option for LYR, wouldn't it? I'm guessing the current SK routes to LYR are heavily subsidized (but I could be wrong).

The winter months probably don't pull in great yields, but during the summer seats are easy to sell and fares are sky high. It's a 1,200 mile round trip with fares are generally above £250rtn cheapest and the planes are full all summer.


Dan  



...love is just a camouflage for what resembles rage again...
User currently offlineHELyes From Finland, joined Oct 2010, 893 posts, RR: 1
Reply 33, posted (1 year 8 months 1 week 1 day 3 hours ago) and read 2221 times:

Quoting TC957 (Reply 19):
I'm wondering if SAS should just concentrate on long-haul and domestic feed to it and leave inter-european services to Norwegian et all. Odd that AY seems to be doing so well and SK is in such a pickle.

AY have had problems too but this year looks ok. They want to focus on long-haul and find partners for feeding, Flybe Nordic operates their Embraers already. SK's structure is heavy and they have been walking on three legs, while AY has been more flexible.

Quoting southwest737500 (Reply 29):
What happens to Blue1

Blue1 is SAS Finland now, they probably would go down too.

I feel sorry for the SK employees, they will be hit hard even if the company is somehow saved today  


User currently offlinesouthwest737500 From , joined Dec 1969, posts, RR:
Reply 34, posted (1 year 8 months 1 week 1 day 2 hours ago) and read 2204 times:

Quoting HELyes (Reply 33):

Wow this is so sad. I've never flown them but it seems like all the good airlines our going through trouble


User currently offlinelegacyins From United States of America, joined Aug 2003, 2054 posts, RR: 0
Reply 35, posted (1 year 8 months 1 week 1 day 1 hour ago) and read 2190 times:

Negotiations between management and the Unions is still going on. Two Unions have agreed and only six more to go.

http://news.yahoo.com/airline-sass-s...ded-monday-001605266--finance.html



John@SFO
User currently offlineMortyman From Norway, joined Aug 2006, 3835 posts, RR: 1
Reply 36, posted (1 year 8 months 1 week 1 day 1 hour ago) and read 2183 times:

Quoting legacyins (Reply 35):
Negotiations between management and the Unions is still going on. Two Unions have agreed and only six more to go.

Other way around my friend

6 has agreed, two to go ...  


User currently offlinelegacyins From United States of America, joined Aug 2003, 2054 posts, RR: 0
Reply 37, posted (1 year 8 months 1 week 1 day 1 hour ago) and read 2210 times:

Quoting Mortyman (Reply 36):

So, is this an update from the article?

"SAS spokeswoman Elisabeth Manzi said SAS had inked deals with Norwegian cabin crew unions SNK and NKS, and it was still in talks with the remaining six unions."



John@SFO
User currently onlineKiwiRob From New Zealand, joined Jun 2005, 7112 posts, RR: 3
Reply 38, posted (1 year 8 months 1 week 1 day ago) and read 2179 times:

All the lastest news here in English

http://www.newsinenglish.no/2012/11/19/pilot-unions-agree-to-sas-cuts/

It's the Danish and Norwegian cabin attendants unions which are the 2 holdouts.


User currently offlineCPHFF From Sweden, joined Aug 2011, 140 posts, RR: 0
Reply 39, posted (1 year 8 months 1 week 23 hours ago) and read 2164 times:

Nice to see them SK planes in the air this morning. I was really worried.



  



Detroit is bankrupt. Don't forget to thank UAW folks!
User currently offlineAeroWesty From United States of America, joined Oct 2004, 20375 posts, RR: 62
Reply 40, posted (1 year 8 months 1 week 15 hours ago) and read 2057 times:

Quoting KiwiRob (Reply 38):
It's the Danish and Norwegian cabin attendants unions which are the 2 holdouts.
SAS 'saved,' at least for now

"Scandinavian Airlines (SAS) was able to avoid filing for bankruptcy on Monday after the last of nine key labour unions finally agreed to go along with pay and pension cuts, along with more demanding work rules. The agreement ended a weekend drama that some say put the entire Nordic transport system at stake."



International Homo of Mystery
User currently onlineKiwiRob From New Zealand, joined Jun 2005, 7112 posts, RR: 3
Reply 41, posted (1 year 8 months 1 week 11 hours ago) and read 1992 times:

Quoting RyanairGuru (Reply 26):
For long flights such as Oslo to Svalbard which are clearly beyond the range of a Dash,

If WF gets bought by Per Braathen which has been widely reported in the Norwegian press, Braathens have Bombardier C series on order for Malmo Aviation, shouldn't be any problem for a C series to do Oslo Svalbard.


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