SAS
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from politiken.dk (sorry, only in danish)
Following 2 recent, and illegal, strikes by SAS Denmark cabin crew, the CEO has announced the company will address these issues in an upcoming strategic review, due in June.
One possible outcome will be to transfer the highly lucrative shuttles between CPH and OSL, ARN to either SAS Sweden or SAS Norway. This will result in substantial reductions in the number of cabin and cockpit crews for SAS Denmark.
The latest 2-day strike resulted ın upwards of 700 cancelled flights, disruption of around 50000 customers and a loss of around DKK 100M (roughly EUR 13.5M). The CEO made comments to the effect of 'SAS is here to serve our customers, not the other way around' - a fact seemingly lost by a number of SAS DK cabin crew.
For your informatıion, a 3-year agreement between SAS DK and ıt's Danish cabin crew was signed earlier this year. The compromise agreements (and are not all agreements compromises?) was apparently not good enough for some SAS DK cabin crew.
Following 2 recent, and illegal, strikes by SAS Denmark cabin crew, the CEO has announced the company will address these issues in an upcoming strategic review, due in June.
One possible outcome will be to transfer the highly lucrative shuttles between CPH and OSL, ARN to either SAS Sweden or SAS Norway. This will result in substantial reductions in the number of cabin and cockpit crews for SAS Denmark.
The latest 2-day strike resulted ın upwards of 700 cancelled flights, disruption of around 50000 customers and a loss of around DKK 100M (roughly EUR 13.5M). The CEO made comments to the effect of 'SAS is here to serve our customers, not the other way around' - a fact seemingly lost by a number of SAS DK cabin crew.
For your informatıion, a 3-year agreement between SAS DK and ıt's Danish cabin crew was signed earlier this year. The compromise agreements (and are not all agreements compromises?) was apparently not good enough for some SAS DK cabin crew.
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Amazingly, this thread has been idle since 2007.
Two reasons to revive it.
First issue: Integration
Source: blue1.com
Second issue: SAS need cash again!
Cited from: thelocal.se
Two reasons to revive it.
First issue: Integration
Starting 1 November, 2012, the commercial responsibility of SAS Group in Finland will move from Blue1 to SAS. In practice, this means that Blue1 will become a production company whose main role will be to produce operational flight services to SAS's route network. In this new role as a production company Blue1 will continue to operate current routes on behalf of SAS.
As part of the commercial integration process, Blue1 flight numbers will change into SAS flight numbers. As an example, flight “KF 123” will become “SK 456”. The change does not require any action by customers. Corporate deals will not be affected. Passengers will be able to check in normally with the original booking reference and the new SK flight number will be printed on the boarding card.
As from November, the marketing and sales of flights will also be transferred to the SAS brand, hereby further strengthening the Finnish market within SAS Group's total route network.
As part of the commercial integration process, Blue1 flight numbers will change into SAS flight numbers. As an example, flight “KF 123” will become “SK 456”. The change does not require any action by customers. Corporate deals will not be affected. Passengers will be able to check in normally with the original booking reference and the new SK flight number will be printed on the boarding card.
As from November, the marketing and sales of flights will also be transferred to the SAS brand, hereby further strengthening the Finnish market within SAS Group's total route network.
Second issue: SAS need cash again!
Scandinavian airline SAS has moved to quash rumours that it is facing bankruptcy and that banks are considering not extending loans to the troubled carrier.
"There has been speculation all autumn, there are new things almost everyday, but nothing is decided," said SAS communications head Knut Morten Johansen to the Norwegian website E24.no.
The media has been awash with reports that SAS is facing insolvency, that its banks were losing patience and that the company is set to be sold.
Johansen rejected the sale rumours, explaining that the speculation was "frustrating".
According to a report in the Dagens Industri business daily this week, the airline and its three major shareholders - the Swedish, Norwegian and Danish states - held meetings with its creditors to discuss the airline's future.
The Swedish state has invested some 2.4 billion kronor ($360 million) in the loss-making airline in the past three years, money which has long since been exhausted.
The airline posted losses of 1.69 billion kronor in 2011 and CEO Rickard Gustafsson pledged to accelerate the firm's cost-cutting programme, seeking five billion kronor in savings and new revenue in 2012.
According to the Dagens Industri report, the company's loan facilities expire in March 2013 and rumours that the banks were disinclined to extend the loans have persisted.
"There has been speculation all autumn, there are new things almost everyday, but nothing is decided," said SAS communications head Knut Morten Johansen to the Norwegian website E24.no.
The media has been awash with reports that SAS is facing insolvency, that its banks were losing patience and that the company is set to be sold.
Johansen rejected the sale rumours, explaining that the speculation was "frustrating".
According to a report in the Dagens Industri business daily this week, the airline and its three major shareholders - the Swedish, Norwegian and Danish states - held meetings with its creditors to discuss the airline's future.
The Swedish state has invested some 2.4 billion kronor ($360 million) in the loss-making airline in the past three years, money which has long since been exhausted.
The airline posted losses of 1.69 billion kronor in 2011 and CEO Rickard Gustafsson pledged to accelerate the firm's cost-cutting programme, seeking five billion kronor in savings and new revenue in 2012.
According to the Dagens Industri report, the company's loan facilities expire in March 2013 and rumours that the banks were disinclined to extend the loans have persisted.
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SAS was forced today to release the Q3 results ten days earlier than planned to try to stop the speculation flood the last days. The EBT for Q3 was +568 MSEK and with that the EBT for the nine first months this year will have an EBT of -193 MSEK.
Source: http://feed.ne.cision.com/wpyfs/00/0...7C/wkr0006.pdf
Source: http://feed.ne.cision.com/wpyfs/00/0...7C/wkr0006.pdf
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This really is our "final call" if we want SAS to survive, said the airline's CEO Rickard Gustafson, announcing the job loss of 800. I know we ask a lot of our employees, but there is no other way, the Swedish government will not give more money, he said. The airline has agreed a new credit facility of around 3.5 billion Swedish crowns ($520 million).
At the end of October a new plan will be announced to boost pretax profits by around 3 billion Swedish crowns ($445 million).
At the end of October a new plan will be announced to boost pretax profits by around 3 billion Swedish crowns ($445 million).
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How the customers can express their lack of confidence? Well, sometimes in a very unusual way. For example... by buying even more! SAS customers are doing just that, buying. Not necessarily flight tickets, though. Last days they have stormed SAS Internet store to use up their bonus points in the event of bankruptcy. As the result, Thursday the web shop closed for several hours. According to SAS in Sweden the EuroBonus shop was down due to high load, but in fact it seems that the shop's suppliers started to demand the advance payments. Tough times ahead, apparently.
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SAS - 'A Dinosaur In The Process Of Dying'?
When should we expect to hear what is happening at SAS, I understand meetings were happening today?
Above is a link to a story online, similar to what was reported above.
When should we expect to hear what is happening at SAS, I understand meetings were happening today?
Above is a link to a story online, similar to what was reported above.
Paxing All Over The World
The thread running in R&N tells the story. Two points being, you can't run three hubs in regional proximity AND a wide diversity of a/c.
It is too late and, sadly they will go. If not today, Very soon. It is the way of the Western World at this time. The 'fault' is not one group, but many differnet circumstances, most of which could not have been imagined 20/30/40 years ago.
It is too late and, sadly they will go. If not today, Very soon. It is the way of the Western World at this time. The 'fault' is not one group, but many differnet circumstances, most of which could not have been imagined 20/30/40 years ago.
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Not really getting any better. Who will move in and take on some of the routes?
BBC News - SAS in overnight talks with unions to avoid bankruptcy
fr-
BBC News - SAS in overnight talks with unions to avoid bankruptcy
fr-
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Taken from theforeigner.no:
CAU was the last of eight unions to reach agreement with SAS, fifteen hours after the deadline for agreement was breached. This brought a meeting that had lasted all night to a close.
The first of the unions to reach agreement with management was the SAS Norway Kabinforening union, which signed at 1am Monday. The second Norwegian union, Norsk Kabinforening, reached agreement at 8am Monday.
Whilst some of the unions want to ask their members’ approval for the agreement, this is viewed as a technicality by union leaders.
The agreement means that SAS staff will work longer hours, with the working week extended from 44 hours to 47.5, and the working day extended to up to 13 hours.
Jens Lippestad, who led negotiations for the pilots, told NTB, “Pilots will be 30 per cent cheaper, because we will be earning less and working more.” According to Lippestad, pilots are giving up the equivalent of month’s salary.
Cabin staff appear to have been spared the salary cut, but have agreed to a rise in pensionable age to 65 years, as well as changes to working hours.
The demand for cuts to salaries and pensions come from the banks that have been keeping SAS afloat in recent months. The banks have also requested that SAS dispose of assets.
The company now believes it has met the conditions laid down by the banks and by the major shareholders in the company, the Norwegian, Swedish and Danish governments, as well as the Swedish Wallenberg foundation.
This guarantees a line of credit equivalent to 3.5 billion Swedish kroner until March 2015.
CAU was the last of eight unions to reach agreement with SAS, fifteen hours after the deadline for agreement was breached. This brought a meeting that had lasted all night to a close.
The first of the unions to reach agreement with management was the SAS Norway Kabinforening union, which signed at 1am Monday. The second Norwegian union, Norsk Kabinforening, reached agreement at 8am Monday.
Whilst some of the unions want to ask their members’ approval for the agreement, this is viewed as a technicality by union leaders.
The agreement means that SAS staff will work longer hours, with the working week extended from 44 hours to 47.5, and the working day extended to up to 13 hours.
Jens Lippestad, who led negotiations for the pilots, told NTB, “Pilots will be 30 per cent cheaper, because we will be earning less and working more.” According to Lippestad, pilots are giving up the equivalent of month’s salary.
Cabin staff appear to have been spared the salary cut, but have agreed to a rise in pensionable age to 65 years, as well as changes to working hours.
The demand for cuts to salaries and pensions come from the banks that have been keeping SAS afloat in recent months. The banks have also requested that SAS dispose of assets.
The company now believes it has met the conditions laid down by the banks and by the major shareholders in the company, the Norwegian, Swedish and Danish governments, as well as the Swedish Wallenberg foundation.
This guarantees a line of credit equivalent to 3.5 billion Swedish kroner until March 2015.
>but many differnet circumstances, most of which could not have been imagined 20/30/40 years ago.
See my comments on the R and N thread. All the current challenges, principally increased competition and the need to reduce cost, was warned to the staff circa 1988. I worked for SAS.
r
See my comments on the R and N thread. All the current challenges, principally increased competition and the need to reduce cost, was warned to the staff circa 1988. I worked for SAS.
r
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What did you expect from someone who fancies himself as a business analyst but sounds more like a horoscope writer from a glossy women's magazine. Apparently there is very little one does not become an expert at by sitting 5 minutes in a cabin seat.
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Who will move in and take on some of the routes?
Routes from Norway/Sweden/Denmark to Germany/Switzerland/Austria
As far I as know there is some sort of ATI between LH and SAS on those routes between Germany and Norway/Sweden/Denmark and I think the same applies to OS and LX in relation to Austria and Switzerland
So if SAS closed down, LH/OS/LX will take control of those routes
All other Mainline Routes from Copenhagen, Oslo and Stockholm:
I will suppose overseas airline competing on overseas routes served by SAS will increase the frequencies, anything else will have to be filled by Norwegian
What to do with the remainder of SAS:
I would guess Wideroe will be either sold off or the Government of Norway will take control of the airline and the stake in Air Greenland will be sold off to the governments of Greenland and Denmark
Last edited by BALHR; 20th Nov 2012 at 10:46.