planemaker
Posts: 5411
Joined: Mon Aug 25, 2003 12:53 pm

Scandinavian Airlines Ready For Take-off

Wed Mar 31, 2004 4:56 am

Interesting article about the SAS restructuring. I didn't know that management had to deal with 39 unions - North American airlines have it easy!

"By early next year, SAS Group should have reduced its cost base by 45% following a 14bn Swedish kronor (£1bn; $1.8bn) cost cutting manoeuvre, said Soren Belin, executive vice president in charge of airline strategy and coordination.

Last week's deals ended months of wrangling with the 39 trade unions that represent SAS staff in Denmark, Sweden and Norway.

At some point a deadlock was broken when the management threatened to close down the whole airline and fire all Swedish and Danish staff, then create a new carrier and rehire by offering individual contracts, the Danish newspaper Politiken reported."


Full article: http://news.bbc.co.uk/2/hi/business/3565411.stm
Nationalism is an infantile disease. It is the measles of mankind. - A. Einstein
 
Horus
Posts: 5131
Joined: Sun Feb 22, 2004 1:04 am

RE: Scandinavian Airlines Ready For Take-off

Wed Mar 31, 2004 4:58 am

Good news for Oslo and Stockholm!
EGYPT: A 7,000 Year Old Civilisation
 
Bofredrik
Posts: 1133
Joined: Sat Oct 30, 1999 4:17 pm

RE: Scandinavian Airlines Ready For Take-off

Wed Mar 31, 2004 5:56 am

What kind of SAS will we have in the future? This new deal between HQ and the staff is bad for the... staff. For the first time in SAS long history will the salaries be reduced. But not for all. The CEO have just got + 20 % himself. What kind of signals will that send trough the organisation? SAS have a danish CEO who have no experience from the trade and i think they instead need a more open and positive person with knowledge about airlines. But right now is it true to say that SAS is not what it used to be. "Airline of the year" once but not in 2004 anyhow.
 
747400F
Posts: 464
Joined: Thu Feb 26, 2004 3:36 am

RE: Scandinavian Airlines Ready For Take-off

Wed Mar 31, 2004 6:47 am

Sorry but the CEO seems to be just what SAS needed. The high salaries have been reduced - the union stronghold (SAS=Strike Always Strike) has been broken. They now have a fighting chance - the day after the uniondeal was struck he even talked about buying 4 extra longhaul planes.

Playing the fire-all-and-rehire-them-card was a great move - and perfectly legal under Swedish law, so no problem there.

The CEO has taken a paycut this year just like everyone - he only had a bonus from LAST year paid out this year according to his contract.
All humans have the right to marry the one they love
 
Bofredrik
Posts: 1133
Joined: Sat Oct 30, 1999 4:17 pm

RE: Scandinavian Airlines Ready For Take-off

Wed Mar 31, 2004 7:08 am

High salaries? For some of the staff but not all. A check-in clerk makes the same per month as the ones that work at 7-11.
 
prebennorholm
Posts: 6430
Joined: Tue Mar 21, 2000 6:25 am

RE: Scandinavian Airlines Ready For Take-off

Wed Mar 31, 2004 7:09 am

The main thing is that now it is very likely that there will be a SAS in the future.

In case of business as usual a lot of unpleasant things would begin to happen in months rather than years:

- Oil companies would require cash prepayment of fuel around the world.
- Leasing companies would become uneasy and demand 6 months prepayment of leasing costs.
- Credit card companies would stop renewing crew credit cards.
- Bank advisors would move into the SAS HQ and run the company finances. Sell off planes, cancel leasing contracts etc.
- Etc. etc.

That was what would have happened. The SAS management simply does not have the power to be able to run it into a "Swissair trap". Besides that airline creditors like banks, leasing companies, oil companies etc. learned a lot from the Swissair crash. They will take control in time and manage a decent shutdown with minimal damage to themselves.

But that's not the case now. SAS seems to have been saved.

This new deal between HQ and the staff is bad for the... staff. Right. If they can switch to another company and enjoy a more prosperous future.

Happy landing, Preben Norholm
Always keep your number of landings equal to your number of take-offs
 
DC9
Posts: 233
Joined: Sat Feb 12, 2000 6:38 pm

RE: Scandinavian Airlines Ready For Take-off

Wed Mar 31, 2004 7:16 am

I refer to this article in Swedish:
http://www.expressen.se/index.jsp?d=212&a=119727


In my eyes, a CEO who runs over the employees completly is not worth of being a CEO. Many of those I know, from top to bottom in the airline, are FULLY aware of what is needed to be done to save the airline, but the way Lindegaard is running over them is what p***es them them most and that is why the oposition arises.


 
prebennorholm
Posts: 6430
Joined: Tue Mar 21, 2000 6:25 am

RE: Scandinavian Airlines Ready For Take-off

Wed Mar 31, 2004 7:21 am

Dear DC9, just take into account that Expressen is not just the least trustworthy newspaper in Sweden, but probably in all Europe. I'm not sure that even Britain can compete there.

[Edited 2004-03-30 23:25:40]
Always keep your number of landings equal to your number of take-offs