Just came to the press and stockholders:
Harmonization of legal structure provides conditions for profitable, regionally based units
The SAS Group has provided information earlier - in its year-end report and press releases – regarding the work in progress to create a more functional legal structure for the SAS Group, which will harmonize the business structure. The change in the legal structure is being implemented in stages. In November 2003, the employees in Corporate Functions were transferred from the SAS consortium to SAS AB
and, in December 2003, a number of the SAS consortium’s subsidiaries were transferred to SAS AB
on market conditions. In addition, SAS AB
’s Board of Directors has given the management a mandate to implement the transfer of the SAS consortium’s SAS Ground Services, SAS Technical Services, SAS trading and Shared Services business units to separate SAS AB
To further improve the conditions for profitable and competitive operations, the Board of SAS AB
today decided to assign the management to integrate the SAS consortium’s flight operations in Norway with Braathens and to allow the merged operations to become a subsidiary within the SAS consortium. The Board has also decided to establish wholly owned subsidiaries of the SAS consortium in Denmark and Sweden to conduct the airline operations that the consortium currently manages through its regional business units in Denmark and Sweden. The SAS Group’s intercontinental airline operations will continue to be conducted by the SAS consortium. The change will be implemented with respect to all of the SAS consortium’s existing obligations and commitments, including political aviation and other regulatory requirements, and leasing and financial agreements.
In Norway, an interim solution is soon to be established in the form of a contractual joint venture between the SAS consortium and Braathens, by which a joint management team will assume responsibility for the total production resources in the Norwegian market.
The transfers mean that the SAS Group’s total operations will be relatively unchanged, while also creating the conditions for increased competitiveness through new cost-effective units. In its contacts with authorities, lending institutions, suppliers and other affected associates, the SAS management will now describe and explain the changes and their positive effects.
No changes will occur to the listed unit, SAS AB
, which will remain the Group’s Parent Company and continue to be listed on the exchanges in Stockholm, Oslo and Copenhagen.
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