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1960s SAS Scandinavian Airlines TIME MONEY WEIGHTS MEASURES Brochure AVIATION
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Scandinavian Airlines, usually known as SAS, is the flag carrier of Denmark, Norway and Sweden.[3] SAS is an abbreviation of the company's full name, Scandinavian Airlines System[4] or legally Scandinavian Airlines System Denmark-Norway-Sweden.[5] Part of the SAS Group and headquartered at the SAS Frösundavik Office Building in Solna, Sweden, the airline operates 180 aircraft to 90 destinations (as of December 2019).[6] The airline's main hub is at Copenhagen-Kastrup Airport, with connections to 109 destinations around the world. Stockholm-Arlanda Airport (with 106 destinations) is the second largest hub and Oslo Airport, Gardermoen being the third major hub of SAS.[7] Minor hubs also exist at Bergen Airport, Flesland, Göteborg Landvetter Airport, Stavanger Airport, Sola, and Trondheim Airport, Værnes. SAS Cargo is an independent, wholly owned subsidiary of Scandinavian Airlines and its main office is at Copenhagen Airport.[8]
In 2017, SAS carried 28.6 million passengers, achieving revenues of 40 billion Swedish kronor.[9] This makes it the eighth-largest airline in Europe and the largest in Denmark and Sweden. The SAS fleet is composed of 180 aircraft consisting of Airbus A319, Airbus A320, Airbus A320neo, Airbus A321, Airbus A330, Airbus A340, Airbus A350, and Boeing 737 Next Generation aircraft.[6] SAS also wet leases Airbus A320neo, ATR 72, and Bombardier CRJ900 aircraft.[10]
The airline was founded in 1946 as a consortium to pool the transatlantic operations of Swedish airline Svensk Interkontinental Lufttrafik, Norway's Det Norske Luftfartselskap and Det Danske Luftfartselskab of Denmark. The consortium was extended to cover European and domestic cooperation two years later. In 1951, all the airlines were merged to create SAS. SAS has been described as "an icon of Norwegian–Swedish–Danish cooperation".[11] On 27 June 2018, the Norwegian government announced that it had sold all its shares in SAS.[12][13]
In 1997, SAS was a founding member of one of the major airline alliances, Star Alliance.
The airline was founded on 1 August 1946, when Svensk Interkontinental Lufttrafik AB (an airline owned by the Swedish Wallenberg family), Det Danske Luftfartselskab A/S, and Det Norske Luftfartselskap AS (the flag carriers of Denmark and Norway) formed a partnership to handle the intercontinental air traffic of these three Scandinavian countries.[14] Operations started on 17 September 1946. In 1948 the Swedish flag carrier AB Aerotransport joined SAS and the companies coordinated European operations and finally merged to form the SAS Consortium in 1951. When established, the airline was divided between SAS Danmark (28.6%), SAS Norge (28.6%), and SAS Sverige (42.8%), all owned 50% by private investors and 50% by their governments.[15]
Transpolar route
In 1954 SAS was the first airline to start scheduled flights on a polar route. The Douglas DC-6B flew from Copenhagen to Los Angeles with stops in Søndre Strømfjord (now Kangerlussuaq) in Greenland and Winnipeg in Canada. By summer 1956 frequency had increased to three flights per week. It was popular with Hollywood celebrities and film industry people, and the route turned out to be a publicity coup for SAS. Thanks to a tariff structure that allowed free transit to other European destinations via Copenhagen, this trans-polar route gained increasing popularity with American tourists throughout the 1950s. In 1957 SAS started a second polar route when a Douglas DC-7C flew from Copenhagen to Tokyo via Anchorage International Airport in Alaska. The flight via Alaska was a compromise solution since the Soviet Union would not allow SAS, among other air carriers, to fly across Siberia between Europe and Japan, and Chinese airspace was also closed.[4]
Jet era
Radisson Blu Royal Hotel in central Copenhagen, originally SAS Royal Hotel, designed by Arne Jacobsen and built in 1960.
SAS entered the jet age in 1959 when the Sud Aviation Caravelle entered service, with the Douglas DC-8 then joining the fleet the next year. In 1971, SAS put its first Boeing 747 jumbo jet into service.[16]
During its first decades, the airline built two large hotels in central Copenhagen, SAS Royal Hotel (5 stars) and the even larger SAS Hotel Scandinavia (4 stars, with a casino on the 26th floor). After the deregulation of European commercial aviation and the crisis afterwards which affected SAS, like many other national airline corporations, Scandinavian Airlines sold its hotels to Radisson.
The company logo in the 1980s was made up of stripes in the colours of the flags of Denmark, Norway, and Sweden
SAS operated flights to Greenland for more than 50 years until March 2003. The route re-opened spring 2007 until January 2009. Pictured: a Boeing 767-300ER at Kangerlussuaq Airport (2001).
Acquisition of local airlines
SAS gradually acquired control of the domestic markets in all three countries by acquiring full or partial control of local airlines, including Braathens and Widerøe in Norway; Linjeflyg and Skyways Express in Sweden; and Cimber Air in Denmark. In 1989, SAS acquired 18.4% of Texas Air Corporation, the parent company of Continental Airlines, in a bid to form a global alliance. This stake was later sold. During the 1990s, SAS also bought a 20% stake in British Midland. SAS bought 95% of Spanair, the second-largest airline in Spain, as well as Air Greenland. An agreement to divest more than 80 percent of the holdings in Spanair was signed with a Catalan group of investors led by Consorci de Turisme de Barcelona and Catalana d'Inciatives in January 2009.[17]
Star Alliance founding member
In May 1997, SAS formed the global Star Alliance network with Air Canada, Lufthansa, Thai Airways International, and United Airlines. Four years earlier SAS unsuccessfully tried to merge with KLM, Star Alliance partner Austrian Airlines, and the now-defunct Swissair, in a project called Alcazar. This failure led to the departure the following year of CEO Jan Carlzon, who was credited for the financial turnaround of the company starting in 1981 and who envisioned SAS ownership of multiple airlines worldwide. The ownership structure of SAS was changed in June 2001, with a holding company being created in which the holdings of the governments changed to Sweden (21.4%), Norway (14.3%), and Denmark (14.3%) and the remaining 50% publicly held and traded on the stock market.
Recent history (2004–present)
In 2004 Scandinavian Airlines System (SAS) was divided into four companies; SAS Scandinavian Airlines Sverige AB, SAS Scandinavian Airlines Danmark A/S, SAS Braathens AS, and SAS Scandinavian International AS. SAS Braathens was re-branded SAS Scandinavian Airlines Norge AS in 2007.[18] In October 2009 the four companies were once again united into one company, SAS Scandinavian System AB.
With the coming of low-cost airlines and decreasing fares in Scandinavia, the business turned into the red. To be profitable again, the airline had to cut costs. In a first step, the airline sold its stakes in other companies, such as British Midland International, Spanair, and airBaltic, and began to restructure its operations.[19][20][21] This was to save costs by about 23 percent between 2008 and 2011. In November 2012 the company came under heavy pressure from its owners and banks to implement even heavier cost-cutting measures as a condition for continued financial support. Negotiations with the respective trade unions took place for more than a week and exceeded the original deadline, but in the end, SAS and the trade unions reached an agreement that would increase the work time, cutting salary between 12-20%, pension, and retirement plans, and thus keep the airline flying. SAS drew some criticism for how it handled the negotiations, in denying facilities to the union delegations.[22]
In 2017, it was announced that SAS would form a new airline, Scandinavian Airlines Ireland, operating out of Heathrow Airport and Malaga Airport to fly European routes on its parent's behalf using nine new A320Neo aircraft.
As part of an environmental initiative launched by SFO, in December 2018 SAS flights operating out of SFO have been supplied with sustainable aviation fuel from Shell and SkyNRG.[23][24]
Corporate affairs
Business trends
The key trends for Scandinavian Airlines Group (which includes SAS Cargo, SAS Ground Handling, and SAS Tech), are shown below:
2008 2009 2010 2011 2012[a]
Jan–Oct 2013 2014 2015 2016 2017 2018
Turnover (SEKm) 47,536 39,696 36,524 36,735 33,148 42,182 38,006 39,650 39,459 42,654 44,718
Profit before tax (EBT) (SEKm) −188 −1,522 −33 543 228 1,648 −918 1,417 1,431 1,725 2,041
Number of employees (average FTE) 16,286 14,438 13,723 13,479 13,591 14,127 12,329 11,288 10,710 10,324 10,146
Number of passengers (m) 30.9 27.0 27.1 29.0 25.9 30.4 29.4 28.1 29.4 30.1 30.1
Passenger load factor (%) 72.3 72.7 75.6 74.9 76.7 75.0 76.9 76.3 76.0 76.8 75.7
Total unit cost (CASK) (SEK) 0.94 1.01 0.95 0.86 0.81 0.80 0.75 0.79 0.70 0.69 0.72
Total unit revenue (RASK) (SEK) 0.91 0.92 0.86 0.82 0.82 0.78 0.70 0.80
Number of aircraft (at year end) 181 172 159 147 145 139 138 152 156 158 157
Figures for SAS Group. Notes/sources: [26] [26] [27] [28] [29][30] [31] [32] [33] [33]
Head office
The current head office, the SAS Frösundavik Office Building as seen in 2007.
Scandinavian Airlines' head office is located in the SAS Frösundavik Office Building in Frösundavik [sv], Solna Municipality, Sweden, near Stockholm.[34] Between 2011 and 2013, the head office was located at Stockholm Arlanda Airport (ARN) in Sigtuna Municipality, Sweden.[35] The SAS Cargo Group A/S head office is in Kastrup, Tårnby Municipality, Denmark.[36]
The SAS Frösundavik Office Building,[37][38] was designed by Niels Torp Architects and built between 1985 and 1987. The move from Solna to Arlanda was completed in 2010.[39] A previous SAS head office was located on the grounds of Bromma Airport in Stockholm.[40] In 2013 SAS announced that it once again would relocate to Frösundavik.[34]
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