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SAS: December Was Encouraging

Wed Jan 09, 2002 7:31 pm

Passenger traffic (RPK) showed an overall decrease of 3,1% in December 2001 vs. December 2000 and number of passengers decreased by 7,8%. Overall capacity (ASK) decreased by 4,7% and passenger load factor increased by 1,0 p.u to 62,1%.

1· Business Class traffic was down 15,9% and Economy Class was up 1,9%.

2. Capacity reductions leads to improved load factors
Trading conditions in December continued to be very difficult, but the overall traffic development in December was better compared with the October and November figures, mainly due to growth in Economy Class on Intercontinental routes. For the first time since the September 11 event, passenger load factor increased as capacity cuts are taking effect. The weakness in Business Class continued to be a challenge, but parts of this development might be explained by a different pattern in the holidays during Christmas/ New Year. In particular traffic on the European routes continued to be weak while the Intercontinental traffic developed significantly stronger. The new capacity as a result of the introduction of the Airbus A340 on Bangkok/ Singapore route was offset by increased traffic.

The overall development in December was encouraging, but it is not possible to foresee a change in the trend at this point and the outlook remains uncertain. Yields are under pressure from the negative mix developments and promotional activities, but supported by a 5% price
increase as from October 1, 2001 and the surcharge of 4USD/passenger added at the end of November.

Passenger Traffic and Capacity per route area - December 2001 Intercontinental traffic increased by 5,9% in December in line with capacity increase of 6,0%. On the North Atlantic SAS passenger load factors
averaged 70,3%. The routes to/ from Washington showed load factors close to 66%. Traffic/ to from Asia noted a smaller decrease in passenger load factors, but overall load factors continued to be close to 80%. The
introduction of the Airbus A 340 on Bangkok/Singapore route as from December 9, 2001 increased capacity by 27% and traffic increased by 28%.

Traffic on the European routes decreased by 7,3% during December 2001 vs 2000. Most parts of the capacity adjustments was finalized in December and
this brought capacity down by 9,2%. The negative mix continued to be significant on the European routes. In general traffic to/from Sweden was most affected. The traffic to/from London continued to be weak.

Intrascandinavian traffic was also negatively affected during December as the feeder traffic to Copenhagen on the European routes/ U.S. routes was down. Particularly the feeder traffic to/ from Sweden was down, a trend experienced also before September 11 as the Swedish economy continued to weaken. Danish domestic traffic was down 19,4% mainly due to negative
development to/from Greenland as Grønlandsfly has changed their flight schedule. Norwegian domestic total market continued to fall significantly during December. SAS traffic fell by 11,6% but as a result of capacity
adjustments passenger load factor improved by 2,3 p.u.
Posts: 6435
Joined: Tue Mar 21, 2000 6:25 am

RE: SAS: December Was Encouraging

Thu Jan 10, 2002 5:07 am

There is no doubt that in the present situation SAS is hunting new customers. Their marketing is very agressive. Just yesterday I got the following e-mail (translated from Danish):

Dear Preben Norholm,
We extend the period for the special [Christmas/New Year] SAS pleasure tickets to several European towns until 31st January.
Example: Paris $235 incl. taxes.
You can buy special SAS pleasure tickets to the USA up to 28th February.
Example: LA or San Francisco $435 incl. taxes.
All flights must be before 21st March.
Have a look at and read about conditions.
Here you also find extra cheap SAS pleasure tickets, which can only be bought online: London at only $145 incl. taxes. Look for the special offer "Christmas lasts until Easter"...
Kind regards, SAS Marketing

The London offer is of course a direct responce on GO and Ryanair. Ryanair has just started a route from Sturup to Stanstead - Sturup is just across the new bridge to Sweden from Copenhagen.
But the US offers, they are extremely favourable. No doubt that SAS wants to make Scandinavians used to the US west coast as their new A340s are introduced.

Regards, Preben Norholm
Always keep your number of landings equal to your number of take-offs
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Joined: Mon Aug 23, 1999 5:35 am

RE: SAS: December Was Encouraging

Thu Jan 10, 2002 5:19 am

Is it true that SAS has postponed delivery of five Q400 and has parked another five?
Flown: A319/320/321,A332/3,A380,AT4,AT7,B732/3/4/5/7/8,B742/4,B762/763,B772,CR2,CR7,ER4,E70,E75,F50/70,M11,L15,S20
Posts: 6435
Joined: Tue Mar 21, 2000 6:25 am

RE: SAS: December Was Encouraging

Thu Jan 10, 2002 5:54 am

Flying-Tiger, if we are talking about today, then I have heard nothing about it in the Danish Press. Besides that I think that all ordered Q400s have now been delivered.

But about a year ago they grounded the whole fleet and refused to take delivery of any more planes until certain problems had been eliminated. At that time I think 11 planes had not been delivered yet.

At that time, following a string of various incidents the Scandinavian CAAs were getting "very interested" in the SAS Q400 operation.

The landing gear incident last Saturday didn't promote overall confidence in the type. But I think that it has matured by now, and that the Saturday incident must be considered a "one off" which would have created much less outroar in case the introduction had been less troublesome.

But quite naturally "Q400" has become sort of four letter word here in Scandinavia.

When interpreting the press, then the even more recent introduction of the A340 has instead been piece of cake.

Regards, Preben Norholm
Always keep your number of landings equal to your number of take-offs