heisan67
Posts: 1001
Joined: Sun Aug 22, 1999 8:34 am

SAS - Braathens

Tue Aug 21, 2001 1:09 am

Airlines furious over merger denial

Scandinavian Airlines (SAS), domestic carrier Braathens and their employees were reeling Monday after it became clear that Norwegian regulators will block a merger of the two carriers. The regulators also want to dump frequent flier programs within Norway.

"This is a major step backwards to the times before free competition in the air," said an openly irritated SAS boss Gunnar Reitan.

Norway's competition authority (Konkurransetilsynet) signalled Monday that it won't allow SAS to take over the ailing Braathens. It also said it wanted to do away with the bonus programs each carrier has to reward loyal customers.

That would affect all incentives given to individuals, travel agencies and companies for repeat business.

Employees at both SAS and Braathens, meanwhile, expressed bitter disappointment Monday afternoon over the regulators' move to block a merger of the two arch-rivals.

Many now fear that Braathens' owners may declare bankruptcy, a move that would ground the fleet, force the return of leased aircraft and spark mass layoffs.

The leader of one employees' union said the existence of two carriers in Norway's small domestic market has led to overcapacity, higher ticket prices and major losses at both carriers.

Regulators and consumer groups, however, have feared that an SAS takeover of Braathens would result in one dominant player in Norway, and eliminate competition.

SAS intends to appeal the authorities' decision.
 
GOT
Posts: 1843
Joined: Sun Dec 31, 2000 6:44 am

RE: SAS - Braathens

Tue Aug 21, 2001 3:06 am

I think that this might be a good decision for the passengers, but in the end SAS will take Braathens share of the market anyway. Maybe they can buy Braathens after a new discussion with the Norweigian authorities or they might have to compete with them until Bratthens goes bankructy.

GOT
Just like birdwatching - without having to be so damned quiet!

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos