• Sweden's news in English
 
jobs_header_v3

No future for SAS in Europe: expert

The Local · 19 Nov 2012, 17:13

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

Facebook Twitter Google+ reddit

“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)

Facebook Twitter Google+ reddit


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
Police launch manhunt after deadly Stockholm shooting
No suspects have yet been arrested over the attack. Photo: Claudio Bresciani/TT

Swedish police have launched a massive manhunt after masked gunmen barged into a Stockholm café and shot two people to death late on Friday.

Sweden has fourth happiest workers in the world: report
Is Swedish fika the secret? Photo: Fredrik Sandberg/TT

Sweden is home to the fourth happiest workers in the world, an international survey has claimed.

Here's how much Ikea staff are getting for Christmas
Christmas comes early for Ikea staff. Photo: Vegard Wivestad Grøtt/NTB scanpix/TT

Staff at Ikea are getting an early Christmas treat in the form of millions of euros to share between them.

Sweden threatens action to stop Facebook 'hate and lies'
Should Facebook crack down on hate speech? Photo: AP Photo/dapd, Timur Emek

Sweden could impose legal obligations on Facebook as a last resort if the social network does not crack down on hate speech and fake news, the culture and democracy minister has threatened.

In pictures
This is what Sweden's new Icehotel looks like
An artist's impression of the hotel in winter. Photo: PinPin Studio/Icehotel

The famous Icehotel in Jukkasjärvi has just opened its new year-round section. Have a look at some of the first pictures of one of the world's most unusual hotels here.

The Local List
Sweden's pioneering free press act turns 250
It doesn't look bad for 250 years old. Photo: Regeringen

On the day of its 250th anniversary, The Local looks at five facts worth knowing about Sweden's groundbreaking Freedom of the Press Act.

Beware ice, Swedes warned after string of accidents
File photo of a Swedish car not related to the story. Photo: Tomas Oneborg / SvD / TT

Swedes have been warned to be on their guards as stretches of the country's southern roads turned into ice rinks due to the chilly temperatures, causing a string of car accidents.

The Local List
Ten things you should never say to a Swede
These things are guaranteed to anger Swedes. Photo: Fredrik Sandberg/TT

The Local List
Seven bizarre Swedish academic traditions
Student life in Lund, southern Sweden. Photo: Johan Nilsson/SCANPIX

The Local guides you through Sweden's ancient universities' top academic traditions all foreign students need to know about.

Swedish study: Virtual reality relieves phantom limbs
A man testing the software used in the study. Photo: Ortiz-Catalan et al/ The Lancet

A new study by Gothenburg's Chalmers University shows that training a virtual arm in virtual reality can relieve the phantom limb pain suffered by amputees.

Sponsored Article
Smart songwriters: Sweden's next big music export?
National
Final proof that Sweden has NOT banned Christmas lights
Sponsored Article
Why Stockholm attracts so much talent from abroad
Travel
IN PICTURES: Stockholm's new myth-busting Viking museum
The Local Voices
Job market matchmaker hooks up 1,300 newcomers and Swedes
Blog updates

14 November

Hello darkness, my old friend (The Diplomatic Dispatch) »

"I started thinking about November’s blog for The Local at the end of October, as the…" READ »

 

6 October

10 useful hjälpverb (The Swedish Teacher) »

"Hej! I think the so-called “hjalpverb” (auxiliary verbs in English) are a good way to get…" READ »

 
 
 
Sponsored Article
18 Stockholm innovations to keep an eye on
Gallery
People-watching: November 30th
Sponsored Article
Sweden to Hong Kong: The Local guide
National
This is how cold it's going to get in Sweden this week
Gallery
Property of the week: Skellefteå
National
Inside Sweden's perilous Sami reindeer pilgrimage
Sponsored Article
Programmers' bootcamp: Change your life in 12 weeks
The Local Voices
'My name is Sami and I am a proud Swede - it hurts when people say I'm not Swedish'
Sponsored Article
We visited 5 'murder spots' in Malmö
National
Swedish Advent 'less popular than Christmas Eve'
Gallery
People-watching: November 25th-27th
Sponsored Article
Why Stockholm startups are teaching kids to program
Swedish city to put all workers through LGBT course
Sponsored Article
Smart songwriters: Sweden's next big music export?
National
The five weirdest attacks on Sweden's giant straw yule goat
Gallery
People-watching: November 23rd
Sponsored Article
'Learning to trade gave me the life I wanted'
The Local Voices
'Swedes are stylish: you need to dress well if you want to fit in'
Sponsored Article
Stockholm: leading the way in clean energy innovation
National
Critics slam Swedish paper's Donald Trump cartoon as anti-Semitic
Sponsored Article
Michael Björklund: 'Being a chef is crazy work'
National
Men call Sweden's mansplaining hotline for mansplaining tips
Sponsored Article
We visited 5 'murder spots' in Malmö
Gallery
Property of the week: Gotland
Sponsored Article
HIV in Sweden today is not like it was yesterday
Gallery
People-watching: November 18th-20th
Sponsored Article
Mette Helbæk: ‘We have a basic human need to connect'
Culture
Shooting starts on The Bridge 4
Sponsored Article
Terje Håkonsen: 'I try to make everything count'
Travel
Sweden's ten most beautiful places
Sponsored Article
Lina Thomsgård: 'I try to break down barriers every day'
The Local Voices
Having a Swedish girlfriend didn't help this Egyptian evade culture shock
Sponsored Article
'We wanted to turn ideas into action'
Gallery
People-watching: November 16th
Culture
What the world of Harry Potter would look like... set in Sweden
National
Here's where Sweden's best non-native English speakers live
The Local Voices
This new book by a Syrian writer gives refugee children their own hero
Politics
Do Swedish polls underestimate support for Sweden Democrats?
3,562
jobs available