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Scandinavian Airlines

Scandinavian Airlines or SAS, previously Scandinavian Airlines System, is the flag carrier of Sweden, Norway and Denmark, and the largest airline in Scandinavia.

Part of the Scandinavian Airlines System Aktiebolag and headquartered at Stockholm-Arlanda Airport in Sigtuna, Sweden, the airline operates 182 aircraft to 90 destinations. The airline's only major intercontinental hub is at Copenhagen-Kastrup Airport. Copenhagen-Kastrup airport is also the largest of three hubs for European routes, with Oslo Airport, Gardermoen and Stockholm-Arlanda Airport as second and third respectively. Minor hubs also exist at Bergen Airport, Flesland, Gothenburg-Landvetter Airport, Stavanger Airport, Sola and Trondheim Airport, Værnes.

In 2012, SAS carried 25.9 million passengers, achieving revenues of SEK 36 billion. This makes it the ninth-largest airline in Europe. The SAS fleet consists of Airbus A319, A320, A321, A330 and A340, Boeing 737 Next Generation, and Bombardier CRJ900 aircraft.

The airline was founded in 1946 as a consortium to pool the transatlantic operations of Svensk Interkontinental Lufttrafik, Det Norske Luftfartselskap and Det Danske Luftfartselskab. The consortium was extended to cover European and domestic cooperation two years later. In 1951, all the airlines were merged to create SAS.

SAS is one of the founding members of Star Alliance.

History

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. 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.

Trans polar route

In 1954 SAS was the first airline to start scheduled flights on a polar route. The DC-6B flew from Copenhagen to Los Angeles, California, U.S.A. with stops in Søndre Strømfjord, Greenland, and Winnipeg, 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 DC-7C flew from Copenhagen to Tokyo, Japan, via Anchorage, Alaska. The flight via Alaska was a compromise solution since the Soviet Union would not allow SAS - and other air carriers - to fly across Siberia between Europe and Japan, while the airspace of the PR China was also closed. SAS publicized this service as "round-the-world service over the North Pole".

Jet Era

SAS entered the jet age in 1959 when the Caravelle entered service. In 1971, SAS put its first Boeing 747 jumbo jet into service.

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, 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. There are plans to dispose of all of these holdings and an agreement to divest more than 80 percent of the holdings in Spanair was signed with a Catalonian group of investors led by Consorci de Turisme de Barcelona and Catalana d'Inciatives in January 2009.

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.

Contemporary history (2004–present)

In 2004 Scandinavian Airlines System (SAS) was divided into four companies; SAS Scandinavian Airlines Sverige AB, SAS Scandinavian Airlines Danmark AS, SAS Braathens AS and SAS Scandinavian International AS. SAS Braathens was re-branded SAS Scandinavian Airlines Norge AS in 2007. 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 bmi, Spanair and AirBaltic, and began to restructure its operations. This was to save costs by about 23 percent between 2008 and 2011. The next big cost-cutting measure followed by the end of 2011. It should generate cost savings of another three to four percent until 2015. In June 2012 the airline announced that they will extend this measure. 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 worktime, cutting salary between 12-20%, pension and retirement plans, and thus keep the airline flying. SAS drew some criticism for how they handled the negotiations, in denying facilities to the union delegations. As of November 2013, there was the expectation that the company would show 2013 as its first profitable year since 2007.

Corporate affairs

During its first decades, Scandinavian Airlines, SAS, build two large hotels in central Copenhagen, SAS Royal Hotel (5 stars) and the even larger SAS Hotel Scandinavia (4 stars and a Casino at 26th floor). After the deregulations of European commercial aviation, and the crisis which afterwards affected SAS, like many other national airline cooperations, Scandinavian Airlines sold their hotels to Radisson.

Corporate offices

Scandinavian Airlines' head office is at Stockholm Arlanda Airport (ARN) in Sigtuna Municipality, Sweden. The SAS Cargo Group A/S head office is in Kastrup, Tårnby Municipality, Denmark.

Until 2011, the SAS head office, the SAS Frösundavik Office Building, was located in Frösundavik, Solna Municipality, Sweden, near Stockholm. It was designed by Niels Torp Architects and built between 1985-1987. The move from Solna to Arlanda was completed in 2010. A previous SAS head office was located on the grounds of Bromma Airport in Stockholm.

Partners

Besides the agreements SAS has with its Star Alliance partners, SAS has strategic agreements with Lufthansa, Swiss, Austrian and United. The agreement includes code sharing and schedule coordination to facilitate improved connections between SAS and its partner airlines. SAS also co-operates with the other airlines in the SAS Group.

SAS has begun code-sharing with Shanghai Airlines, complementing its code-share arrangement with Air China.

Accidents and incidents

Of the airline's twenty-three major accidents and incidents, four have resulted in the loss of life. The first was the 1948 Northwood mid-air collision over London, with which 39 fatalities made it the deadliest accident in the United Kingdom at the time. In the 1960 Flight 871 to Istanbul, the aircraft descended too early, resulting in 42 people perishing in the first accident of the Sud Aviation Caravelle. The same cause was responsible nine years later in Los Angeles, when 15 people were killed in Flight 933. The final and most deadly accident was Flight 686, where 114 people were killed in a runway collision in Milan.

SAS has been subject to three hijackings—none of which have resulted in the loss of lives. Two were successful: Flight 130 in 1972 was captured by the Croatian National Resistance, while Flight 347 in 1994 was captured in the ruse of the Bosnian War. Two accidents have been dramatized as part of the television series Mayday. In addition to Flight 686, it featured Flight 751, which crashed without fatalities in a forest in Gottröra after foreign object damage. Fifteen accidents have resulted in aircraft being written off. This includes two of the Dash 8 landing gear incidents in September 2007, which resulted in a group-wide retirement of the Bombardier Dash 8-Q400.

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