TR
Topic Author
Posts: 939
Joined: Thu May 03, 2001 1:28 am

SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 12:03 am

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 In addition to the above an additional intercontinental aircraft will be withdrawn from operations but the route and/or destination will be announced within a few weeks.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
aircraft.

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.
 
johnnybgoode
Posts: 2144
Joined: Wed Jan 03, 2001 8:47 pm

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 12:08 am

and we thought for SAS it was "business as usual"...
i´m just curious to which route the only a340 which is in service on the DEL route, will be transferred to...
any ideas?


daniel
If only pure sweetness was offered, why's this bitter taste left in my mouth.
 
TR
Topic Author
Posts: 939
Joined: Thu May 03, 2001 1:28 am

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 12:10 am

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.

Sad day for us Scandinavians...

Cheers
Thomas
 
ARN
Posts: 255
Joined: Tue Feb 20, 2001 12:34 am

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 12:11 am

Closing down Delhi is indeed a big surprise. I was given the impression that this route was the most profitable among the asian routes.
 
TR
Topic Author
Posts: 939
Joined: Thu May 03, 2001 1:28 am

RE: Johnnybgoode

Thu Sep 27, 2001 12:12 am

I guess the A340 will transfer to one of the US routes (CPH-EWR or CPH-ORD) or Beijing. Return flights on these routes can be made within 24 hours. But lets see..

Thomas
 
transswede
Posts: 969
Joined: Fri Sep 21, 2001 9:30 am

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 12:35 am

The 2nd SAS A340 was going to start on CPH-Beijing in October/November. So I presume the that's where the 1st one may go now instead. Pure speculation, though.
 
VirginA340
Posts: 2556
Joined: Sun Jul 17, 2005 12:35 pm

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 1:27 am

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)
"FUIMUS"
 
swiss-airplane
Posts: 557
Joined: Wed May 03, 2000 3:08 pm

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 1:28 am

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.
Greetings

Mike
 
TR
Topic Author
Posts: 939
Joined: Thu May 03, 2001 1:28 am

RE: Swiss-airplane

Thu Sep 27, 2001 1:30 am

I don´t mind Swissair  Smile/happy/getting dizzy But you already know so don´t let them cut too many routes!

Cheers mate
Thomas
 
airblue
Posts: 1785
Joined: Sat May 19, 2001 9:16 pm

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 1:30 am

No more Stansted means they axe SVG-STN routes??
And about Milan, they reduce flights to MXP or LIN??
 
TR
Topic Author
Posts: 939
Joined: Thu May 03, 2001 1:28 am

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 1:32 am

Yes, no more SVG-STN! However Braathens might take over that route!

I don´t know in detail on the Milan routes...

Cheers
Thomas
 
TR
Topic Author
Posts: 939
Joined: Thu May 03, 2001 1:28 am

RE: Loss Making Routes Are Cut

Thu Sep 27, 2001 1:40 am

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.

Cheers
Thomas
 
kaitak
Posts: 8937
Joined: Wed Aug 18, 1999 5:49 am

RE: Loss Making Routes Are Cut

Thu Sep 27, 2001 2:01 am

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
Posts: 1843
Joined: Sun Dec 31, 2000 6:44 am

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 2:06 am

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.

GOT
Just like birdwatching - without having to be so damned quiet!
 
Jaws707
Posts: 667
Joined: Mon Aug 06, 2001 10:45 am

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 3:15 am

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.
 
GOT
Posts: 1843
Joined: Sun Dec 31, 2000 6:44 am

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 3:21 am

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.

BTW, I saw the news on TV now. A pressrelease told that SAS would cut operations by 12%, but nothing was menchened about which route would be affected.

GOT
Just like birdwatching - without having to be so damned quiet!
 
transswede
Posts: 969
Joined: Fri Sep 21, 2001 9:30 am

GOT - Here Is The SAS Release

Thu Sep 27, 2001 3:46 am

You were doubting the accuracy of the report, well here is a link to the SAS press release:

http://www.scandinavian.net/company/investor/newsdesk/0109262.asp
 
atwingo
Posts: 155
Joined: Tue Jul 17, 2001 4:40 am

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 4:01 am

What do you guys think the additional intercontinental route which they will cut is going to be?
 
johnnybgoode
Posts: 2144
Joined: Wed Jan 03, 2001 8:47 pm

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 7:06 am

TR, "business as usual" -

i was aware that those were your words on a different topic, that´s why i quoted them  Wink/being sarcastic

best wishes
daniel
If only pure sweetness was offered, why's this bitter taste left in my mouth.
 
B744F
Posts: 2927
Joined: Sat Jan 21, 2006 4:52 pm

RE: SAS To Axe OSL-EWR And CPH-DEL!

Thu Sep 27, 2001 8:16 am

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.

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