• 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)

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
Russian jets violate Swedish airspace: report
Russian Su-24 medium-range bomber, known by Nato as 'Fencer,' flies at undisclosed location in Russia in 2002. File photo: AP

Russian jets violate Swedish airspace: report

Two Russian fighter jets violated Swedish airspace on Wednesday, prompting the government to request an urgent report from the Armed Forces. READ  

Business
Sweden’s growth 'better than expected'
Strong household consumption is helping Sweden's growth. Photo: Mona-Lisa Djerf/SvD/TT

Sweden’s growth 'better than expected'

Sweden’s gross domestic product grew 2.6 percent in the second quarter of 2014 compared to the same period a year earlier, with the economy performing much better than previously thought. READ  

Presented by West Sweden
West Sweden prepares for lobster premiere
Sweden's lobster season starts on Monday. Photo: Jonas Ingman

West Sweden prepares for lobster premiere

It's almost time to catch your own dinner off the west coast of Sweden. The lobster season gets underway on Monday, with fishermen and tourists taking to the seas in the hope of stocking up on the traditional Swedish delicacy. READ  

National
Gas leak leaves Sony staff in Sweden hospital

Gas leak leaves Sony staff in Sweden hospital

An Ozone gas leak at Sony Mobile's offices in Lund has put eight people in hospital, with nine others needing to be checked by doctors. READ  

Elections 2014
Social Democrats get permission to govern
Stefan Löfven is set to become Prime Minister. Photo: TT

Social Democrats get permission to govern

Sweden's parliamentary speaker has given Social Democrat leader Stefan Löfven the all-clear to form a government. On Friday Löfven is expected to meet the heads of the Liberal and Centre parties. READ  

Elections 2014
Vote quirk gives Sweden Democrats extra seats
Sweden Democrat leader Jimmie Åkesson celebrates his party's election success. Photo: Lars Pehrson/SvD/TT

Vote quirk gives Sweden Democrats extra seats

The Sweden Democrats, who became the third largest party in Sunday's election, have learned they will get two more seats than expected due to a quirk in the country's election system. READ  

Tech
Ericsson to axe modems and cut jobs
Ericsson CEO Hans Vestberg, pictured here presenting the comapny's quarterly report in July. Photo: Annika af Klercker/TT

Ericsson to axe modems and cut jobs

Swedish telecom giant Ericsson has confirmed it will cut jobs in Sweden and abroad after the company announced on Thursday morning it would stop developing modems. READ  

Elections 2014
Centre party laughs off Löfven's advances
Annie Lööf speaks after her meeting with parliament's speaker on Wednesday. Photo: Fredrik Persson/TT

Centre party laughs off Löfven's advances

UPDATED: Centre Party leader Annie Lööf has reiterated her reluctance to cooperate across bloc lines with Social Democrat leader Stefan Löfven, as he renews his attempts to form a fresh government. READ  

Elections 2014
Sweden Democrats want prized speaker job
Sweden Democrat party secretary Björn Söder celebrates Sunday's election result. Photo: Anders Wiklund/TT

Sweden Democrats want prized speaker job

UPDATED: As Sweden’s third largest party, the Sweden Democrats "assume" they will be given one of a handful of prestigious parliamentary speaker jobs, party secretary Björn Söder tells The Local. READ  

National
Teens in intensive care after school 'initiation'
Photo: Peder Skrivares school

Teens in intensive care after school 'initiation'

School inspectors are investigating after an initiation ceremony at a high school in Varberg in south west Sweden left four girls in hospital. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Society
What's on in Sweden
Politics
How Sweden Democrats went mainstream
Politics
Scandinavia and Scotland: closer links?
Gallery
Property of the week - Eskilstuna
Sponsored Article
How to start a business in Stockholm
Blog updates

17 September

Deep election analysis (Blogweiser) »

"You think you’re bad? Well I’m American. http://www.youtube.com/watch?v=NFbomLID0vU Deep deep analysis on Swedish election results. Vlog post: https://t.co/tjQgfa5Yie #svpol #val2014 #politics pic.twitter.com/oEK5ADFT8L — Joel Sherwood (@joeldsherwood) September 17, 2014 " READ »

 

15 September

Liten, litet, små & lilla (The Swedish Teacher) »

"Hej igen! Have you ever been confused about when to use “liten”, “litet”, “små” and “lilla”? Today I’m going to sort out how use the adjective “liten” (small) and the different forms of it. Liten or litet? “Liten” is the form we will use when referring to a noun with the gender “en”. For example: Min pappa har en..." READ »

 
 
 
Society
How I became a surf blogger when I moved to Sweden
Gallery
People-watching: September 13th
Society
Why is Stockholm's Södermalm so cool?
Gallery
People-watching: September 11th
Gallery
People-watching: September 13th
Politics
Five possible election outcomes
Politics
Sweden elections: How do they work?
Politics
Sweden elections: Who's who?
Lifestyle
What's on in Sweden
Gallery
Property of the week - Hornstull, Stockholm
Analysis
Five differences between the UK and Sweden
Welshman Jonny Luck is now a chef in Sweden
Society
How I opened my own restaurant in Sweden's Malmö
Sponsored Article
Stockholm tech fest: relive the magic
Gallery
People-watching September 8th
Photo: TT
Politics
Feminists fight for first seats
Politics
Immigration cut push from Sweden Democrats
Sheryl Sandberg says women have "low expectations"
Tech
Facebook exec talks women's limits in Swedish business
Politics
Left Party calls for justice and equality
Politics
Green Party wants 'better world' for kids
Lifestyle
The five best Swedish songs of the month
Sponsored Article
Introducing… Insurance in Stockholm
Sponsored Article
Graduates: Insure your income in Sweden with AEA
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

860
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
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
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