TR From UK - England, joined May 2001, 964 posts, RR: 0 Posted (14 years 7 months 1 week 6 days 14 hours ago) and read 3407 times:
SAS has previously reported that the development in passenger mix worsened in July and August compared with previous months. Overall Business Class was lower than last year, which has put yields and revenues under pressure. The demand has continued to weaken significantly in the wake of the terrorist acts in the U.S.A., and put significant additional pressure on yields and revenues.
"As a result of these events and the great uncertainties
facing SAS and the whole airline industry, SAS has decided to implement a series of measures to prevent a loss in the Full Year 2001. SAS plans to replace its long-haul fleet is still intact, but we will adjust the pace of the replacement" SAS CEO Jørgen Lindegaard says.
These measures can be divided into three parts:
1. Capacity adjustments
2. Result improvement measures
3. Price increases
1. Overall capacity (ASK) will be adjusted down 12% in 2002 compared with earlier planned production. In total, 5 destinations will be closed down.
These destinations are Kaliningrad, Tel Aviv, Barcelona,
Delhi and Stansted. In addition several frequencies will be cut to/from Budapest, Wroclaw, Prague, Zurich, Amsterdam, Tallinn; Berlin, Paris and Milan. SAS will also
reduce several frequencies on Swedish domestic routes. The flights between Oslo- Newark, Gothenburg-Paris and Stockholm- Hamburg will be closed down. In addition to the above an additional intercontinental aircraft will be withdrawn from operations but the route and/or destination will be announced within a few weeks.
A total of 16 aircraft will be taken out of traffic. These are 3 wide-body jets, 10 narrow bodies and 3 commuter
A total of 800-1100 in redundancies is expected as a
result of the reductions. It is our ambition to handle the
redundancies in Scandinavia through voluntary solutions and transfers.
In the view of the profitability problem within the airline industry and increased costs caused by significantly higher insurance premiums as well as tighter security measures and procedures, SAS will implement a price increase of 5% as from October 1, 2001.
TR From UK - England, joined May 2001, 964 posts, RR: 0
Reply 2, posted (14 years 7 months 1 week 6 days 14 hours ago) and read 3261 times:
My own words on the message from SAS, So much for my friends words earlier today! Just called him and he was very surpriced!!
Anyway now this is a fact - SAS as not as optimistic anyway. Sad to see CPH-DEL and OSL-EWR axed. Tel Aviv does not come as a surprice to me as load factors have been going down for quite some time. EL AL also pulled out on this route.
As for the rest I don´t know that much. Stansted was planned to be stopped some time ago with further flights being added on the CPH-LHR route. However I´m not sure that there will be any increase afterall.
VirginA340 From United States of America, joined Jul 2005, 15 posts, RR: 0
Reply 6, posted (14 years 7 months 1 week 6 days 12 hours ago) and read 3218 times:
Ax the CPH-DEL route!?! Are they on crack!?! That route is profitable next to the EWR-CPH. I and my uncle flies SAS and the 767s were always more than half full. Now flying to DEL will be even more expensive now that I'll have to pay up the wazzoo to AI and VS (Shudder)
Swiss-airplane From Switzerland, joined May 2000, 591 posts, RR: 4
Reply 7, posted (14 years 7 months 1 week 6 days 12 hours ago) and read 3221 times:
I'm sad to see how all the airlines are cutting routes. I know this is the best way for going out of the crisis, but it makes me sad. I loved to see the big network of the companies and now that. And the Scandinavian people have to connet even more at other airports instead direct flights.
TR From UK - England, joined May 2001, 964 posts, RR: 0
Reply 11, posted (14 years 7 months 1 week 6 days 12 hours ago) and read 3202 times:
I just saw on danish TV that the OSL-EWR and CPH-DEL are axed as business class passengers have left the routes. This means that the routes were making losses - eventhough they had high load factors in economy class.
Kaitak From Ireland, joined Aug 1999, 13242 posts, RR: 34
Reply 12, posted (14 years 7 months 1 week 6 days 12 hours ago) and read 3185 times:
I'm wondering how the Norwegian government will react to this, since OSL-EWR is effectively Norway's only long haul route and certainly the only one to the US; won't this hit Norwegian tourism badly. As a shareholder in SAS, won't the Norwegian government kick up a fuss?
Ironically, it was once said that SAS was run by the Swedes for the benefit of the Danes, but paid for by Norwegians!
I know times are hard, but certain routes should be considered necessary from a national strategic point of view.
GOT From Sweden, joined Dec 2000, 1912 posts, RR: 1
Reply 13, posted (14 years 7 months 1 week 6 days 12 hours ago) and read 3186 times:
First: TR, where have you got this information from? Is it just pure speculation (it is until you give a source) or do you have a contact within SAS or anywhere else?
Cutting DEL seems wrong since it was the first route that got the A340 whcih must mean that it was one of the first to need capacity upgrade. In my eyes the first long range route to be cut would be one of the two CPH-EWR.
I really hope that SAS wont cut to much and that the routes that are cut can resume quite soon. Sad to here that GOT-CDG might go, but if it's needed to make SAS profitable - go ahead.
Just like birdwatching - without having to be so damned quiet!
Jaws707 From United States of America, joined Aug 2001, 708 posts, RR: 1
Reply 14, posted (14 years 7 months 1 week 6 days 11 hours ago) and read 3149 times:
Cutting EWR-OSL is not that big of a deal. This is because they fly there anyway from CPH with a few flights a day. From Oslo it is a short stop over in CPH, but it is not anything that will really harm the economy of Norway.
B744F From Germany, joined Jan 2006, 0 posts, RR: 0
Reply 19, posted (14 years 7 months 1 week 6 days 6 hours ago) and read 3078 times:
GOT, I think that all the nowegian that fly to the US will hate to mak another connection. It will mean that the whole trip will be from one and a half to two and a hlf hour longer.
i don't think so. as far as i know, EWR is ONLY longhaul scheduled destination ex OSL. so, norwegians are not a kind of people at London, Paris or Frankfirt, who always assuming they can reach almost every destination in the world directly without connections. no real reasons to hate it.