SAS Scandinavian Airlines first launched flights Copenhagen to Dubai last year, which quickly became one of their most popular routes. As is the trend globally, there has also been a slight decrease in bookings for the current winter season, according to ANNA
LYZCAK-CZEPUKOJC, general manager, SAS Scandinavian Airlines.
“2008 has been an extremely tough year for the aviation industry, with over 30 airlines having filed for bankruptcy. As competition has increased even more, SAS’ earnings has decreased over the year and were only marginally positive, at an operating level, for third quarter.”
SAS was also the first airline to reduce capacity by keeping aircraft on the ground. Months later some airlines followed suit.
Objectives for this year were to reduce operating costs even further and to improve productivity in order for SAS to be competitive, she said.
At the start of the year (2008) the company received record bookings for destinations such as the US, but by the third and fourth quarter there was a considerable drop in bookings and the airline was forced to introduce a fuel surcharge to offset the high oil prices.
SAS launched one new long haul route this year (between Copenhagen and Delhi) at the beginning of the serious economic down turn, so it was “launched at an ‘unfair’ time, so to say. Demand for India has decreased, but we are confident it will pick up. With regards to European routes, most have been leisure routes that have been launched seasonally and therefore performed positively,” said Lyzcak-Czepukojc.
A few new European routes are planned for this year, but there will be no new long haul routes.
She said that according to passenger surveys, SAS continues to have one of the best Business and Economy classes compared to other long-haul carriers, and it was still one of few airlines to offer a premium Economy product called Economy Extra. “During 2008 we noticed a growth of Economy Extra bookings by well over 20 per cent.
“For 2009 we will continue to offer a typical Scandinavian service and Scandinavian products onboard.”
Key strengths for SAS is that it has an established and reliable name within the Scandinavian community in the UAE and the GCC, it has a product which offers a truly Scandinavian experience the minute you board the aircraft, and it is a Star Alliance member, which is well known in the UAE due to the long standing partners that have been flying into the region.
“SAS is the only airline offering direct service to Copenhagen from Dubai with excellent connections to Northern Europe, connecting to more than 70 cities,” concluded Lyzcak-Czepukojc.