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SAS Core strategy for long term value

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Jensen: long term value and service for our customers

IN a bid to secure a more competitive approach and in response to the current global environment, the Scandinavian Airlines System (SAS) group launched Core SAS earlier this year.
Now a simplified and smaller SAS will continue to focus on the Nordic air travel market as well as business traveller. The Core SAS strategy aims to create an SAS that generates long term value for shareholders and one that will addresses the current industry dynamics and the global environment.
As a result of the reorganisation, several employees were unfortunately made redundant, but as Per Møller Jensen, vice president SAS International Areas, said, the move will result in a more efficient and simplified SAS with a strengthened customer focus.
Core SAS is built on five main factors – a focus on the Nordic home market, certain operations of the ground, technical and cargo services are expected to be discontinued and/or outsourced to third parties, a focus on business travellers and a strengthened commercial offering, downsizing of the network by reducing capacity to focus more on profitable business routes. In addition, a ‘service and simplicity’ concept was introduced to benefit the customer, with an improved cost reduction programme.
Another new concept is a mobile boarding pass, whereby passengers flying with SAS can now check-in for flights at seven European airports using their mobile phones.
Initially trialing until July 1, passengers with internet enabled phones will be able to use the service when travelling through London Heathrow, Copenhagen, Gothenberg, Helsinki, Oslo, Stavanger and Stockholm. Once passengers have checked in via text or through the SAS mobile portal, they will receive a mobile boarding pass direct to their phone. This includes a 2D bar code, the flight number and seat, as well as the departure and arrival time.
Passengers can then proceed straight to security at the airport, without having to print out boarding passes. The 2D bar code can also be used where appropriate to gain lounge access, when registering luggage at the SAS self service kiosks, and for fast track security access.
SAS hopes to increase the number of passengers using mobile technology. Currently around 10 per cent of SAS passengers check in via text, and 25 per cent online, according to Lars Sandahl Sørensen, senior vice president of commercial at SAS. “Our goal for 2011 is that 80 per cent of our customers check-in online or via their mobile,” he said. If the trial is a success, the service will be rolled out later this year to all destinations.
In the Middle East, Jensen confirmed the resumption of flights. “In terms of routes, we will continue operating to Dubai next winter with the same schedule of three weekly flights. There is a lot of interest to continue our route all year round, but maybe from next year. In other markets, we have discontinued two routes to Seattle and New Delhi (which began in October 2008). India being a leisure market saw a decline in bookings especially with the situation in Mumbai as well as the recession.”
by Shalu Chandran

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