SAS now cheapest on several European routes
18 Apr 2013, 16:25
Published: 18 Apr 2013 16:25 GMT+02:00
SAS now has the cheapest fares on seven out of 29 routes surveyed in the most recent edition of Swedish airfare index Svenskt Flygprisindex, which is published by travel website Travelmarket.se and measures ticket prices from airports in Sweden and Denmark to ten popular destinations in Europe.
"There are indications that SAS has succeeded in lowering its costs with new routes and competitive agreements," Travelmarket.se CEO Ole Stouby said in a statement.
"That's going to benefit consumers in the long run, as low-cost airlines will hardly sit idly by when they see that SAS is trying to regain lost market share."
After tough negotiations last autumn that helped the company avoid bankruptcy, SAS has lowered its costs substantially and can use its personnel more effectively, according to Jacob Pedersen, an airline industry analyst with Danish bank Sydbank.
"Staffing costs have dropped and efficiency has risen. By lowering ticket prices, they're better able to fill their planes. They are probably able to earn money at the same time," he told the TT news agency.
Pedersen added that Norwegian's plans to introduce intercontinental flights will put "enormous pressure" on ticket prices should its efforts succeed.
According to Travelmarket.se, Prague is one of several European destinations where SAS ticket prices come in lower than the competition, landing an average of 10 percent lower than prices with Norwegian.
SAS routes to major European cities like Amsterdam, Rome, and Paris have also become cheaper.