View Full Version : SAS to break up !
BRISTOLRE
8th Dec 2003, 20:04
News is being reported Scandinavian Airlines (SAS) being broken up into a series of smaller companies. All of this is to have taken effect by 2005.
A total of 11 separate airlines will be formed with separate identities including one "overall" carrier for transcontinental services..
This would include SAS, Air Baltic, Estonian Air, Snowflake, Spanair, Braathens, Wideroes, and Blue 1.
flapsforty
8th Dec 2003, 20:32
There's a thread (http://www.pprune.org/forums/showthread.php?s=&threadid=110696) on the Nordic forum about this with more background info.
This was sent to me by a friend who seems well connected -
"SAS Scandinavian Airlines (SK/Copenhagen Kastrup) will be split into five separate entities, one company operating out of each country, Denmark, Norway and Sweden and a longhaul division all operating under the SAS brand.
Its low fare division Snowflake (Copenhagen Kastrup) will also become a separate company.
SAS has increased its stake in Spanair (JK/Palma de Mallorca) from 73.9 percent to 94.9 percent."
Interesting that the major carriers are now having to change structure to cope with the onslought of the low cost carriers. Presumably this means each company will be self sufficient (or not when the time comes).
It would appear that as BA are divesting themselves of much feeder traffic that something else is likely to happen to their short haul operation which appear to be in much trouble. What chances of a re-emergence of BA European ? :uhoh:
Rollingthunder
9th Dec 2003, 02:54
Interesting. Not five years ago, airline future thinking (always somewhat fuzzy and usually wrong) was that consolidation (alliances - mergers) were the way to go. Seem to remember some saying that in this century there would be five or six carriers in essence if not in total. I remain convinced that airlines do not know what the hell is going on strategically.
PAXboy
9th Dec 2003, 03:01
Sounds like management SOPs:
[list=a]
If company operates as different divisons - then bring it all into one group and claim that you are taking it back to it's origins.
If company operates as one big group - then split it up into different divisions and claim that you are giving them freedom to be inventive.
When you don't know what to do, reverse the process.
[/list=a] Seen it all before and they won't be the last - in the airline biz or anywhere else. :uhoh: