• Sweden's news in English
 
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

“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
Thailand's tsunami: Ten years on
The wave Sweden will never forget
Tsunami "Wall of Remembrance" in Mai Khao in northern Phuket. Photo: TT

The wave Sweden will never forget

The Local looks at how Swedes are remembering the tidal wave that shook South-East Asia exactly ten years ago, leaving 543 Swedes dead. READ  

Swedish police warn of migrating elk herds
An elk, known as a moose in northern America, crosses the road. Photo: TT

Swedish police warn of migrating elk herds

Police in northern Sweden have urged holiday motorists to be careful after reports of unusually large herds of migrating elk. READ  

Swedish parties in secret election talks: report
Finance Minister Magdalena Andersson. Photo: TT

Swedish parties in secret election talks: report

The government and opposition parties are reported to be conducting negotiations in a bid to avoid government chaos, putting the new March election in doubt, according to a media report. READ  

Sweden's wild carnivore population on the rise
A family of lynx. Photo: Shutterstock.

Sweden's wild carnivore population on the rise

An extensive European study has found that the numbers of carnivorous animals are on the rise across the continent, with Sweden seeing a hike in the populations of bears, lynxes, wolves, and wolverines. READ  

My Swedish Career
Meet the Italian sketching a new Swedish future
Filippo Vanzo. Photo: Private

Meet the Italian sketching a new Swedish future

For this week's My Swedish Career, The Local chats to Filippo Vanzo, a freelance illustrator who started to picture life in Stockholm after meeting his Swedish girlfriend online. READ  

Icy roads as Swedes head home for Christmas
Photo: TT

Icy roads as Swedes head home for Christmas

The Swedish weather agency has issued a warning for icy roads across the country as many city-dwellers head out to the countryside for Christmas. READ  

Bomb blasts rock Malmö's Rosengård
Photo: TT

Bomb blasts rock Malmö's Rosengård

Police suspect that a rental dispute is behind a twin explosion which rocked the area around Ramels Väg in the Rosengård area of Malmö over the weekend. READ  

Romanian beggar lands bumper lottery win
Photo: TT

Romanian beggar lands bumper lottery win

A Romanian man who slept under a bridge in a Swedish city and lived by begging recently landed a 210,000 kronor ($27,000) lottery win after buying a ticket on impulse, saying he now wants to build himself a house. READ  

Agency: Dream in vain of a white Christmas
There is little chance of snow in Stockholm this Christmas. File photo: TT

Agency: Dream in vain of a white Christmas

Sweden's weather agency SMHI has warned those living in southern parts of the country to stop dreaming of a white Christmas or risk disappointment. READ  

Shots fired at Stockholm migrant camp: report
File photo: TT

Shots fired at Stockholm migrant camp: report

Stockholm police have launched an investigation after reports that shots were fired at an EU migrant camp in the south of the city on Saturday. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Society
Video: The best & worst of Swedish Christmas
National
Second baby on the way for Princess Madeleine
Gallery
People-watching: December 20th - 21st
Lifestyle
What's On in Sweden: December 18th to 25th
National
'Unprecedented' Russian activity: Armed Forces
Blog updates

22 December

A Tale of Three Cities (The Diplomatic Dispatch) »

"Today I am pleased to welcome a guest blogger on my blog, Sir David King, The..." READ »

 

19 December

-t or no -t? (The Swedish Teacher) »

"Hej! There are many things in the Swedish language that can give you a grey hair or two,..." READ »

 
 
 
Society
Interview: The Local chats with Melinda Gates
Society
VIDEO: Stockholmers try out some Swedish tongue twisters
Society
Eight things to do when it gets dark in Umeå
National
Inside Sweden's first 'light therapy' school
Finest.se
Gallery
People-watching: December 17th
Estelle through the years
Gallery
Princess Estelle through the years
Society
Why are there so many 100-year-olds in one Swedish town?
Society
Is it time to better celebrate Sweden's diverse identity?
Gallery
Property of the week: Huddinge
National
Why has The Local got a new logo?
National
CATCH UP: Russian plane in Baltic near-miss drama
Lifestyle
How my compass drew me to Sweden
National
The man whose memory you need to remember
Gallery
People-watching: December 13th - 14th
Sponsored Article
How to get your own office anywhere in the world
Politics
'Our party will stand alone': Stefan Löfven
Society
The Local chats to Ruben Östlund, director of Golden Globe nominated Force Majeure
Lifestyle
Ten things to know before a Swedish party
Lifestyle
What's On in Sweden: December 12th to 19th
Gallery
IN PICTURES: The 2014 Nobel Banquet
National
The Local's guide to the Nobel Prizes 2014
Education
Introducing... Education in Stockholm
Society
The Swedish Christmas market with a twist
Lifestyle
Why do so many Swedes have tattoos?
Society
Get 20% off Swedish Christmas decorations
National
Dewani family: We only heard half the story
Business & Money
Business in Stockholm: 'efficiency is money'
Gallery
Property of the week: Östermalm
National
Meet the Swedes hosting festive feasts for 'lonely' guests
Gallery
TIMELINE: Swedish honeymoon killing murder trial
Gallery
People-watching: December 7th
Gallery
IN PICTURES: What's it like to fly planes in Sweden?
National
Submarine hunters 'robbed' of reward cash
National
The Local's Countdown to Christmas
National
'Dangerous' USB charger recalled in Sweden
Gallery
IN PICTURES: Sweden's King and Queen wrap up France tour
National
Analysis: Should Snowden get asylum in Sweden?
National
Swedish schoolboy in female saint role row
Gallery
IN PICTURES: Sweden's political crisis unfolds
Sponsored Article
SIS: the thinking behind globalised learning
Sponsored Article
Introducing... Family life 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

818
jobs available
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:
psdmedia.se
The Local Spain is hiring!
The Local is seeking a new editor for our site in Spain to join our growing team of internationally-minded, driven, ambitious and clued-up journalists.
Details and how to apply
Counselling and Psychotherapy in English
Sometimes living in another culture can cause stress, confusion and feelings of sadness and loneliness. Talking to a professional psychotherapist/counsellor might help you. I am a UKCP Reg. psychotherapist. My practice is in Södermalm, Stockholm.
Contact me to discuss your options