STOCKHOLM, Sweden, March 7, 2003 (PRIMEZONE) -- In conjunction with the publication of its year-end report on February 12, 2003, the SAS Group (Other OTC:SASDF) announced that additional structural measures would be required to ensure long-term profitability and competitiveness. A detailed analysis regarding the SAS Group's markets, traffic flows and competitive situation is currently under way with the aim of determining the demands for efficient flight operations for the Group's various traffic flows and the airlines' future roles in the Group's traffic system.
Efficient flight operations
All airlines within the SAS Group must achieve efficient flight operations to ensure long-term competitiveness and profitability. Efficient flight operations places demands on extensive structural measures in all areas. For example, the utilization of aircraft and crews must increase substantially to attain levels corresponding to the competition. In addition, a more distinct base separation in Stockholm, Oslo and Copenhagen, a reduction of the types of aircraft per base, enhancing the efficiency of maintenance, ground services, sales and distribution and reduction of overhead and support costs are being evaluated.
There is scope for increases in efficiency within all the Group's airlines, but Scandinavian Airlines is the Group company with the greatest need of further structural measures to achieve efficient flight operations. The identified unit cost reductions in Scandinavian Airlines to achieve long-term competitiveness is in the range of 25-40%, in addition to the measures already initiated depending on which market is being served. Braathens and Wideroee also need to reduce costs levels, but to a lesser degree. Spanair and Air Botnia already today fulfill most of the Group's demands for efficient flight operations in the traffic they operate.
Timetable
All employees and trade unions are being informed today and in the days ahead about the analysis work that is under way to achieve efficient flight operations for the Group's different traffic flows. No finalized proposal with measures is available and no decisions have been made to date. Work will be carried out with the greatest urgency and the timetable is very tight due to the current situation in the airline industry. The established negotiation and decision process means that the trade union negotiations shall be completed so that it is possible to present a final proposal to the Group Board already in mid-April.
For additional information, contact: SAS Group Bertil Ternert, Director Corporate Communications +46 8 797 2081 SAS Group Norway Simen Revold, Director Corporate Communications +47 957 16310 Troels Rasmussen, Director Corporate Communications SAS Group Denmark, +45 23 22 4675 Investor Relations: Sture Stoelen, Head Investor Relations +46 8 797 1451
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://www.waymaker.net/bitonline/2003/03/07/20030307BIT00850/wkr0001.doc
http://www.waymaker.net/bitonline/2003/03/07/20030307BIT00850/wkr0002.pdf