the Competition for passengers is grueling, and the industry is brutal. It continues in 2017, and that is why we have to continue to be effective, think again and look at where and how we can bring down our costs if we want to have a place in the airline industry.
It writes the SAS’ operational executive vice president Lars Sandahl Sørensen in an opinion piece on the Danish bransjenettstedet check-in.dk.
SAS has in recent years carried out extensive measures to bring down the cost, but is still a piece of many of our competitors.
” We must be bold in our investments and invest in what produces real value for customers, he writes.
Opportunities for creativity
In the post says Sandahl Sørensen that there are many actors that compete for the same customers in Europe and that the european luftfartsreglene creates great opportunities to compete on a creative show.
– But it is important to create equal conditions of competition and openness in business models. It should be about delivering the right product at the right price, and not be the best to take advantage of unclear and poor regulation.
COO: Lars Sandahl in SAS.
He emphasises that the SAS will work to develop more uniform rules at the EU level.
the Airline warned earlier this month that they no longer can accept to compete with the european airlines with much lower costs. Therefore, planning the SAS to establish one or more bases outside Scandinavia where kostnadsnivåene is lower.
It is not certain how SAS will establish themselves, but more cities will be under consideration.
No choice
SAS biggest challenge is that they are again in an old model which makes it difficult for the company to compete out there, believe NHH professor Frode Steen.
at the same time, he believes 2017 is a as year for the company if they implement the plans to establish bases outside of Scandinavia.
The staff can never sit and watch that happening, but SAS might have no choice. If a scandinavian wage level to define the growth, they will never be able to grow, ” he says to E24.
SAS rejects the loungedumping
– There is something the English have though a long time ago, and that SAS can understand now. It becomes a “catch-22″, where the scandinavian employees will be growth there, but where the company can’t grow if they is with.
at the same time points out NHH-professor that the competition has not been something larger on the domestic market in Norway.
– So it has seen out there have come to a sort of equilibrium where the SAS gets to be the greatest at home to a level that is very convenient for the Norwegian and fit conveniently for the SAS, ” he says.
What I’m wondering is how much English allows SAS to grow at home before they put on the brakes and pour on with discount tickets. SAS is also depending on of that business is going well. They draw much of their full price – and flexible tickets.
Swedish newspaper: English jevnstore with SAS
Notified sparegrep
SAS delivered in the year-a solid operating profit of 939 million Swedish kronor, but has warned that the tough competition force new grip.
the Company has set the goal of savings in the period from 2017 to 2019 at 1.5 billion Swedish krona.
When E24 met the commercial director Eivind Roald earlier this month, he was clear that they are struggling to compete with the most cost-conscious privatreisende.
– It is not salary level itself that makes Scandinavia so much more expensive, but social security contributions, taxes, pensjonsutgifter, sykelønnsordninger and other social costs, he stated.
Roald describes the european airline market as a stagnant market that is beginning to resemble more and more of the united STATES. Growth SAS now attempts on will thus take place primarily through taking market share from others.
SAS has also notified that it may be relevant with cutbacks in the workforce.
It is among other things the growth of Ryanair and similar actors, which makes that the SAS management believe they need to go more powerful, working to ensure the company’s future.
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