- Sweden edition
- Change edition:
- France |
- Germany |
- Norway |
- Switzerland
February 14, 2012
SAS slashes workforce to save cash
Published: 12 Aug 09 08:39 CET | Double click on a word to get a translation
Online: http://www.thelocal.se/21256/20090812/
Scandinavian airline SAS has announced cuts of 1,000 to 1,500 jobs as part of a new austerity programme to shave 2 billion kronor ($274 million) off its outgoings.
- SAS earnings hit by Spanair bankruptcy (9 Feb 12)
- Electrolux profits plunge amid weak demand (2 Feb 12)
- SAS to lose profits over Spanair bankruptcy (28 Jan 12)
Restructuring costs have come in higher than projected and have increased by 800 million kronor to 1.70 billion kronor for the full year 2009.
In total 1,066 full-time staff have left the concern and seven aircraft have been taken out of service. A further 14 aircraft will be grounded during the remainder of the year.
Passenger numbers continue their dramatic decline in the second quarter, down 17.1 percent.
The airline reported a pre-tax loss of 1.039 billion kronor for the second quarter, in comparison to a profit of 131 million kronor in the corresponding period of 2008.
Turnover amounted to to 12.223 billion kronor in comparison to 14.412 billion a year earlier.
According to a survey compiled by Reuters, analysts had expected a pre-tax loss of 1.143 billion kronor and a turnover of 12.123 billion.
Growth is expected to be negative during 2009, CEO Mats Jansson confirmed. It remained uncertain when the recovery would begin with SAS expecting further falls in passenger numbers in 2009.
Mats Jansson announced plans to push through significant pay cuts for aircraft staff.
SAS explained in its report that both the new savings measures and the previous CORE program are designed to slim down the airline's costs to closer to those of its rivals.
"In sum SAS has to compete on the same conditions as the competition, which is ultimately a question of survival," Jansson said.
SAS staff costs are an average of 20 percent higher than many of its competitors.
Claus Sonberg at SAS explained that it can not be ruled out that Norwegian cabin staff are replaced by cheaper Swedes.
"In the long term we can not compete on different conditions and have more expensive staff than, for example, Norwegian," he explained.
What do you think? Leave your comment below.
Fark It!
Digg This
Share everywhere
Send to a friend
Printable version
Twitter ThisEU to probe Sweden's 'economic imbalance'
Sweden is among twelve countries set to be discussed in a report from the EU commission, due to what the European Commission has identified as imbalances in the economy. READ (6 COMMENTS) »
House prices in Sweden begin upward climb
After observing a slight rise in real estate prices after the first month of 2012, Swedish realtors are hoping that this may be the beginning of a positive trend after last year's plummeting prices. READ »
Swedish recruiters check jobseekers on the net
40 percent of recruiters are checking potential employee’s social networking pages during the hiring process, a figure which has shot up from last year, according to a recent report. READ (3 COMMENTS) »
Narcolepsy victims in new compensation bid
Families of children in Sweden suffering from narcolepsy caused by vaccination for the swine flu can expect some form of compensation, Swedish health minister Göran Hägglund said on Sunday in response to new calls for help from parents. READ (1 COMMENT) »
Saab shares dive despite strong 2011 report
Swedish defence group Saab on Friday reported a major boost in earnings for 2011 thanks to winning several major contracts, but a drop in orders left investors jittery, sending Saab's stock price down nearly 10 percent. READ (3 COMMENTS) »
Mats Sundin in massive kid's health research gift
Mats Sundin, the ex-Swedish hockey great, has made a donation supporting research into children's health at Karolinska Institutet in Stockholm and the University of Toronto. READ (5 COMMENTS) »
H&M under fire over Cambodia mass faintings
H&M has been criticized for choosing not to attend a hearing to highlight poor conditions for textile workers in Cambodia, where hundreds of employees at a plant run by the Swedish fashion giant mysteriously passed out in August. READ (6 COMMENTS) »
SAS earnings hit by Spanair bankruptcy
The bankruptcy of Spanair pulled SAS into the red for 2011, despite improved operating profits, the Scandinavian airline reported on Wednesday. READ (2 COMMENTS) »
Saab to cut Swiss Gripen fighter price: report
Swedish defence group Saab have announced that it will cut the price on its Gripen fighter jet to secure its Swiss order after a threat by French planemaker Dassault to undercut them. READ (6 COMMENTS) »
Few Swedes ready to work until they're 75: poll
An overwhelming majority of Swedes disagree with Swedish prime minister Fredrik Reinfeldt's suggestion that workers should be ready to stay on the job until they are 75, a new poll shows. READ (34 COMMENTS) »
- 07/02 US ISPs block hacker probes: Swedish police (5 comments) »
- 06/02 Kinnevik in bid to buy up publisher Metro (2 comments) »
- 06/02 Fire brigade slammed for 'renting out' rooms (2 comments) »
- 03/02 New bidder in the Saab saga shows its hand (8 comments) »
- 03/02 Volvo group announces record sales for 2011 »
- 03/02 TeliaSonera reports profit drop for 2011 »
- 02/02 Electrolux profits plunge amid weak demand »
- 02/02 AstraZeneca job cuts hit Södertälje hard (7 comments) »
- 02/02 Europe's banks set for years of 'shrinkage': Borg (2 comments) »
- 01/02 'Underclass-safari' post lands official in trouble (1 comment) »
20 things to know before moving to Sweden
As diverse as Sweden is, there are a few societal norms that are distinctly Swedish. Understanding a handful of them will hopefully prepare you culturally before you relocate. When you're invited home to a Swede, you better be on time and take your shoes off, writes expat Lola Akinmade-Åkerström. Read more »
How far can English take you in Sweden?
Sweden is a country where almost everyone can speak English. So why bother to learn Swedish? Edina Varnagy from Hungary managed with English for a whole year but then found that Swedish could open doors – to a job, a social life and greater understanding. Read more »
| 14/02 | Channel Marketing Campaign Manager/Specialist - B2B SAP |
Stockholm |
| 14/02 | Quality Manager Volvo information Technology AB |
Göteborg |
| 14/02 | Production leader Kornboden Resurs AB |
STHM |
| 14/02 | Application SW Architects/Developers within Product Development Volvo information Technology AB |
Göteborg |
| 14/02 | IT Development Graduates Danske Bank |
Copenhagen |
| 14/02 | Regulatory Affairs Associate Poolia AB |
Göteborg |
| 14/02 | Sales Coordinator Bureau Veritas S.A. Frankrike Filial |
Göteborg |
| 14/02 | System developer within Q&A (Java och C) in Mid Sweden Qwork AB |
Karlstad |
| 14/02 | UX Engineer (.NET) - Limited Contract Monster |
Prague |
| 14/02 | Software Engineer - Gameplay/Audio EA DICE |
Stockholm |
- 14/02 Investor confidence tops 10-month high »
- 14/02 OECD sees German growth slowing in 2012 »
- 13/02 Deutsche Bank 'to pay €800 mln' in Kirch case »
- 13/02 Greece leaving the euro not so scary - Germans »
- 10/02 Berlin defies EU over copyright deal »
- 10/02 Germans don't trust Greece to tighten belt »
- 09/02 Tourists flock to Germany in 2011 »
- 09/02 Daimler books record €6-billion profit »
- 08/02 Exports top €1 trillion despite euro crisis »
- 08/02 GM threatens major job cuts at Opel »
- 13/02 Looking for a long term appartment
- 13/02 Babysitter
- 13/02 flat or room available
- 13/02 Party Photographer
- 13/02 Apartment Near Arlanda
- 13/02 Apartment Needed Immediately
- 17:39 Big Fat Gypsy weddings
- 17:25 Where do you live?
- 16:58 Volunteering in Sweden
- 16:41 Upper abdominal pain
- 16:34 Need to replace windows
- 16:29 Women drivers & safety
- 16:01 What is death?
- 15:43 Tax deductible for rented property
- 15:32 A question answered!
- 15:30 Which song are you currently listening to?
Individuals & Couples - Stockholm Beth Rogerson PhD - Clinical, Marriage & Family Therapist
Click or call 08-5580 1266 now
Therapy in English in Stockholm Trained in California Individuals & Couples (08) 93 81 48 FREE phone consultation
Visit anxiousorblue.se
The new Online Tennis Store with the largest selection of Babolat Products in Sweden
http://www.babolatshop.se
Turning Point Counselling centre offers the international community of Stockholm a safe space for personal development, counselling and coaching.
http://www.turning-point.se/show.asp
Swedish Down Town PR Consulting and Productions is an innovative business company which provides valuable assistance with Public Relations and Communications in the swedish and the international market.
www.swedishdowntown.com
Find products and services that are specifically focused on English speakers living in Sweden!
FULL DETAILS
British-Australian Male Counsellor. Counselling Therapy for Depression, Mental Health, Sex, Relationship & Expat Issues
08-559 22 636 or CLICK HERE
Your comments about this article:
The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.
I wonder how much of a pay cut he will take?
The SAS staff in Chicago organized and offered upper management to take an 8 percent pay cut, and said they were willing to do more. It was all arranged on a local level.
Not only did SAS management not even acknowledge their offer, they were served with a lay off notice that their positions would be outsourced within a week of their offer being made.
... loads of money wasted on grandiose acquisitions of hotels and unsafe Spanish airlines
... near comtempt for premium fare passengers who are the difference between profit and loss on many (particularly longhaul) flights
... more time spent lobbying Scandinavian governments against foreign (non-Scandi) low fare airlines than on improving their price/service levels
... their lobbying has succeeded in limiting Ryanairs ambitions in the region, but opened the door for Scandinavian competitors like Norwegian and Cimber who are decimating SASs short-haul customer base