• Sweden edition
 
FINANCIAL WOES AT SAS
No future for SAS in Europe: expert

No future for SAS in Europe: expert

Published: 19 Nov 2012 17:13 GMT+01:00
Updated: 19 Nov 2012 17:13 GMT+01:00

“It’s like the meaning of life – it’s complicated,” airline industry consultant Anders Lidman told The Local.

“And it hasn’t even really started yet, there’s a long way to go.”

Lidman’s comments come after the announcement that all eight SAS unions signed new labour agreements with the troubled airline, a precondition for SAS to move ahead with a comprehensive cost-cutting plan touted by management as the only way to save the airline from bankruptcy.

The new union agreements include centralization of administration functions, reduction of compensation to market levels, new pension terms and outsourcing of call centers and ground handling, the airline said in a statement.

The airline’s staff members agreed to pay-cuts, longer work hours and a time-out on salary negotiations for at least two years.

Some pilots have essentially received a 30 percent pay cut, with extra hours to boot.

However, the fact that negotiations came to a close was a foregone conclusion, according to Lidman.

“If it’s a choice of a job or not I can’t say I’m surprised. It’s not so easy to get jobs these days. And it’s not as if the pilots were starving anyway,” he told The Local.

Lidman explained that since SAS lost its monopoly status following deregulation, the company has suffered to adjust to new market conditions.

He pointed to a flight between Madrid and Stockholm costing a quarter as much today as it did in the eighties, even though costs are much higher now in comparison.

“All the other airlines drew the conclusion that you can’t make money unless you’re a low-cost airline,” he said.

“But SAS has kept its traffic where it’s the worst – Europe.”

In terms of the next step for the airline, Lidman criticized SAS’s lack of a new plan, stating that changes must be made to avoid further turbulence.

“I can’t see a future for SAS if they stay in Europe. They will have to work out a plan and I can’t see a positive plan for them to move forward. They’ve not announced any change of direction and they must do this to survive.”

Meanwhile, passengers should keep an eye on developments, but have no cause for concern, according to Lidman.

“There’s no need to worry now, but passengers should be aware of the situation, and should be keeping an eye on the company,” he told The Local.

Oliver Gee

Follow Oliver on Twitter here

The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

20:59 November 19, 2012 by cogito
Please, SAS, don't kill your non-stop to Paris.
21:33 November 19, 2012 by Beavis
some "expert"... Its EASY for SAS to survive-

1 fire the ceo and senior management team- you failed miserably. (I mean fire not let go)

2 Hire any 16 year old who can calculate to replace them all

3 Match the prices of the competition or at least offer a sligtly higher price (not 20 times the price)

(500 euro one way for a shorthaul euro fare is NOT reasonable!!!)

Come out of the 80s and into 2012 or go bust you choose SAS!!
14:54 November 20, 2012 by DrMartin
SAS bankruptcy is a delight for the modern traveler; it will allow more companies to compete for the routes allowing for lower prices and better service. SAS has a monopoly and can't make a profit, which shows you the level of incompetence we would allow to survive if it doesn't go busy. Goodbye SAS, you will not be missed!
19:41 November 23, 2012 by james7
Since the Swedish and other governments own a percentage of the airline, it is up to them to take the lead to save it from bankruptcy as it would be detrimental to the airline for the governments to sell their stake.. They should demand changes that would make it more profitable and efficent. The more airlines we as consumers have to choose from, the better prices and service we will receive. If Lufthansa can survive and thrive, why can't SAS? SAS is a national treasure that has always had a reputation as one of the best airlines in the world. The Swedish government missed its chance with Volvo and Saab, don't allow SAS the same fate.
13:38 November 25, 2012 by Beavis
@james SAS has anything but a good reputation.. Its prices are the worst in Europe. Its fleet of planes are the oldest and most dangerous in Europe. (tons of MD82s that should have been retired 10 years ago) Rude old battleaxes on most fligts, piltos caught over the alchol limits, poor customer service,awful poorly thoguht flight times, etc etc
Today's headlines
Sweden resumes aid to 'anti-gay Uganda'
Hillevi Engström and protesters against Uganda's anti-gay laws. Photos: Maja Suslin/Ben Curtis/TT

Sweden resumes aid to 'anti-gay Uganda'

Sweden has resumed sending development aid funds to Uganda, after suspending payouts back in March due to "anti-gay legislation". READ  

The Local List
Top ten coffee spots in central Stockholm
Fanny feels at home at the Blå Lotus. Photo: Isabela Vrba

Top ten coffee spots in central Stockholm

If you're wondering where to grab your next cappucino, then wonder no more. The Local talked to the locals in Stockholm and found out the best spots in town for the ultimate fika experience. READ  

Swedish neo-Nazis join fight in Ukraine
The Azov task force. Photo: Sergei Chuzavkov/TT

Swedish neo-Nazis join fight in Ukraine

Four Swedes are fighting with the Ukrainian task force Azov - a squad which flies a flag with Nazi symbols and, according to one Swedish soldier, fights for "a white Ukraine". READ  

Swedish elk get one-way ticket to Denmark
The elk in this picture are not the ones that will be sent to Denmark. Photo: The Uppsala Koala

Swedish elk get one-way ticket to Denmark

Up to a dozen elk will be transported from Sweden to Denmark in an effort to help maintain local marshlands. READ  

Sweden worst in EU at getting foreigners jobs
Photo: Henrik Trygg/Imagebank Sweden

Sweden worst in EU at getting foreigners jobs

UPDATED: Swedish citizens are the most likely to be employed in the EU, but Sweden is among the very worst when it comes to getting non-EU citizens into work. READ  

Man arrested for burning partner's face
Photo: Linn Malmén/TT

Man arrested for burning partner's face

Police suspect that a man in western Sweden is responsible for the extreme burns on his partner's face. The man has been arrested on suspicion of aggravated assault - and potentially attempted murder. READ  

In Pictures: Conchita Wurst in Stockholm
Photo: Maja Suslin/TT

In Pictures: Conchita Wurst in Stockholm

Eurovision winner and LGBTQ idol Conchita Wurst is in Stockholm this week for Stockholm Pride - and joined Swedes at Skansen for a colourful summer sing-along. READ  

Stockholm holds colour contest for new metro
Photo: Joel Bagon

Stockholm holds colour contest for new metro

Stockholm's new metro line is not set for preliminary construction until 2016, and will not be completed until 2022 - but Swedes already have the chance to vote for the new line's colour. READ  

Sweden's heat wave officially over
Photo: Johan Nilsson/TT

Sweden's heat wave officially over

The heat wave that swept over Sweden recently has finally passed, meteorologists reported on Wednesday, promising cooler and more autumnal temperatures around the corner. READ  

Ukraine rebels release kidnapped Swede
Rebel tanks on the road to Horlivka in June. Photo: TT

Ukraine rebels release kidnapped Swede

The Swede who was kidnapped by pro-Russian rebels has been released after nearly three weeks of being held hostage - although no one knows where he is now. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Lifestyle
Stockholm Pride kicks off
Analysis
The top six ways the US and Sweden differ
National
Swedish youth suicides hit 25-year high
National
Politician reported for selling 'negro ball'
National
Police turn blind eye to Swedish 'slave trade'
Blog updates

27 July

Approaching Stockholm (Around Sweden in a kayak) »

"I woke up in the comfort of my own little cabin on Eva and Rolf’s boat, it was 7:30am and I was feeling a bit groggy after a couple of beers with all the lovely locals the night before. The previous day had really taken its toll on my body and I was very stiff and..." READ »

 

24 July

Sharing our Pride: Celebrating Love & the LGBT Community! (Stockholm in my American Heart) »

"It’s mid- July in Stockholm, and with much of the city on vacation, things can seem a little quiet – the streets, the bus, and the grocery store. One thing that has not paused for a summer break, though, is preparation for Stockholm’s Pride Festival, which will take place from July 28 to August 2...." READ »

 
 
 
Gallery
Stockholm Pride: Allsång på Skansen with Conchita Wurst
Skatteverket
Sponsored Article
Introducing... ID cards and permits in Stockholm
Gallery
People-watching, June 26th - 28th. Get inside Stockholm's hottest nightclubs
Gallery
Top ten Swedish taboos
Society
Seven-year-old Swede cycles to Berlin
Politics
'Gaza conflict needs help, not empty rhetoric'
Society
Swedes voted 'most beautiful' in the Nordics
Business & Money
Sweden demands EU clarity on Bitcoin tax
National
Swedish organic sales enjoy 'amazing' growth
Photo: Johan Nilsson/TT
Society
What's On in Sweden
Gallery
People-watching July 23
National
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
Gallery
People-watching Båstad
Business & Money
Sweden falls to third in global innovation index
Society
Swedish ornithologists keep webcam watch
Photo: Andreas Nordström/Image Bank Sweden
Gallery
Top ten Swedish beach hot spots
Tech
Swedish Wiki vet sets new content record
Photo: Fastighetsbyrån
Lifestyle
In Pictures: The Local's Property of the Week
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

751
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se