Tuesday, December 11, 2012

SAS urges to change its business strategies



This year, is the most difficult years for Trio - scandinavian national carrier SAS. The airlines reportedly would cut more 6000 jobs and reduce salaries as part of restructuring plan. SAS faces fierce competition with low cost airlines, Middle East airlines and Thai Airways. Moreover, other problems such low demand, high fuel price and European debt crisis also attribute more problems to the airlines. according to Reuters SAS may to sell are its profit - making Norwegian regional unit - Wideroe, aircraft engines, some real estate and carrier's handling unit. This will cut a deficit in the company pension plan to 76 billions from 12 billions crowns. SAS is also reported that unions until Sunday to agree to cut jobs up to 17 percent for some staffs.




So this my suggestions to SAS team management
  1. Cut jobs should be the last options
  2. Reduce salaries especially top management
  3. Reduce and eliminate unnecessary things.
  4. Cut unprofitable routes
  5. Improve service. Please get rid buy - onboard service it is not good idea as premium airlines
  6. Strengthening cooperation with member of Star alliance especially Turkish Alliance, TK has extensive networks in Africa, Middle East, and Far East.
  7. If possible formING alliance with Middle East airlines, such as Emirates, Qatar Airways or Etihad Airways.
  8. Final suggestions, sell subsidiary units potential buyers. in order for survival, SAS no longer to become trio - national airlines. Denmark, Sweden and Norway needs to have its own airlines. It is hard to focus route networks, bases and costs. Such as SAS - Denmark rebrand to form as national carriers of Denmark and focus its network from based in Copenhagen airport. Learn from Gulf Air. 







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