Budget airlines impact on SAS

Scandinavian Airlines (SAS) has felt the pinch from increased competition in the airline market, forcing it to sharply drop ticket prices and cut ground crew costs. On Tuesday analysts said the plummeting prices could be a “catastrophe” for SAS and recommended people hold off buying shares ahead of next week’s half-yearly results, while the Danish […]

SAS keeps stake in Widerøe, for now

Scandinavian Airlines (SAS) will be raising needed cash by selling off its short-haul, Norwegian-based airline Widerøe, but won’t be cutting its ownership ties to the carrier just yet. SAS doesn’t intend to shed its stake in Widerøe completely until 2016. SAS reported just before the weekend that it had struck a deal to sell 80 […]

EasyJet takes off for Norway

EasyJet, the low-fare airline launched by the son of a Greek shipowner, will start flying a route between London and Bergen next month, and looks set to pose more serious competition to Scandinavian Airlines (SAS). EasyJet also is expected to expand its routes to and from Norwegian airports. “We’re looking at more routes to Norway,” […]

More red ink at SAS

Scandinavian Airlines (SAS), which announced the sale of its ground services division this week as part of a major cost-cutting effort, didn’t manage to head off more heavy losses in its own first quarter. The losses announced Friday, though, weren’t as bad as expected. SAS struck a deal to eventually sell off its SAS Ground […]

SAS defies bonus ban, under probe

After Scandinavian Airlines (SAS) defied a domestic ban and reinstated its bonus program for business travellers this week, competition authorities opened an immediate investigation and Norway’s consumer protection council urged the government to nip SAS’ defiance in the bud. The government said it remains firm in its decision to uphold the ban, but an ongoing case with […]

SAS defends bonus program

UPDATED: Norwegian politicians have joined the chorus of critics furious with management at Scandinavian Airlines (SAS), for paying themselves large bonuses at a time when other employees of the financially ailing airline were being laid off or forced to take pay cuts. “Perverse” and “unwise” were among the descriptions used by members of the Norwegian […]

Banks demanding more cuts at SAS

Scandinavian Airlines (SAS) is under new pressure from both its banks and the three national governments of Sweden, Denmark and Norway that are its major shareholders. Intense negotiations involving the Swedish finance ministry reportedly won SAS a bit more breathing room, but the airline still must sell assets and cut costs in order to get […]

SAS tries to head off another crisis

UPDATED: Weeks of new crisis speculation that’s been swirling around long-troubled Scandinavian Airlines (SAS) effectively forced the company to reveal on Tuesday that it finally will post a third-quarter operating profit, but still must undergo another round of major cost-cutting. SAS personnel, however, aren’t willing to take another pay cut. “The situation in SAS is […]

Airlines face off with new routes

Scandinavian Airlines (SAS) and its arch rival in Norway, Norwegian Air, are both planning new routes when intercontinental competition heats up next year. The plans include the return of SAS to California, more than 20 years after it stopped flying to Los Angeles. SAS has begun selling a new, non-stop route between Copenhagen and San […]

Norway cool to bailing out SAS

Norway’s government minister in charge of business and trade doesn’t seem inclined to infuse Scandinavian Airlines (SAS) with more capital, after the airline reported more heavy losses this week. Norwegian Trade Minister Trond Giske called SAS’ financial situation “worrisome,” but he’s more interested in selling off Norway’s stake in SAS than boosting it. “I have […]