It seems SAS is going to try something different to aid its recovery, with the scrapping of the current business, premium and economy fares on domestic and short haul legs, with in the introduction of SAS Go and SAS Plus
.

With the Go fare, you’ll get:
- One piece of checked luggage
- Complimentary tea and coffee
- Buy on Board food

Meanwhile, the plus fare is a bit more tasty, offering:

- Second piece of checked luggage
- Fast track security
- Lounge access
- Complimentary in-flight food and drink,
- Double Euro Bonus points

So yes, there still is an economy and business section… Just different names. The interesting part will be his they’re catered.

SAS intend to scrap the current offerings and replace it with an onboard cafe to be served to all customers on board – so by that take, both Plus and Go we be catered from the same trolley.

These new products will be available in cabin from June onwards.

It seems that the final union that was holding out – the Danish Flight Attendants Union – has agreed to the savings plan which requires job cuts, longer hours and changes in operations to allow SAS to get extra funding.

SAS have a long way to go even after they’ve secured extra money from creditors, with the sale of lots of bits of SAS:

• Aircraft engines
• Property
• Widereo  (an airline in the SAS group)
• Its ground handling division
• Outsourcing where possible

Is it enough for SAS to stay alive or will there be further drastic action needed? SAS is being eaten from the bottom with Ryanair competing in the ultra-low cost segment, and Norwegian Air Shuttle eating from the side with lower costs (and a long haul programme to boot, with new equipment)

This is going to be one to keep an eye on – and sadly, I don’t think this is going to end very well for many people.

One things is certain: SAS will have to be a leaner and more profitable outfit… and I’m not sure that’s possible even after today…

An update on the state of SAS, with some good news, and some not so good news.

The airline has now agreed changes with seven out of the eight unions representing employees in regards to wages cuts, working schedule changes and pensions.

Only the cabin crew union of Denmark has yet to reach agreement with management.

The airline needs to get agreement from all eight unions as a condition of a 3.5 billion Swedish crown ($515 million) loan from the governments and six banks.

Espen Pettersen, deputy leader of the main Norwegian cabin union states:

“It has been a very gruelling process.”

“We have made big concessions in this agreement. We are not very happy, but we felt we had no other choice but to sign to secure the jobs and the company.”

The management are aiming to finish talks as soon as possible, but talks have been going on since Sunday, and have spilled over to Monday morning (with them continuing as we speak).

Progress in the talks sent SAS shares soaring.

Hopefully, the final union will seek agreement, and SAS can pull back from the edge.

It seems talks with Unions and SAS Management have continued overnight, with talks going beyond the deadline of yesterday.

As you’re all aware, SAS is trying to reorganise again, and needs buy-in from the unions to make the deep cuts it needs to survive, and there are parts of SAS that are preparing for shutdown – the most worrying example from Bloomberg should scare most people:

Airline management ordered all aircraft outside Scandinavia to be refueled and ready to return to base, and crews on all outbound flights were told to carry enough cash to meet expenses, SAS spokesman Mikkel Thrane said.

If that’s not a sign to worry, I don’t know what is.

SAS spokeswoman Elisabeth Manzi said negotiations were continuing after midnight.

“We continue very intense negotiations, but we cannot currently say when they may be concluded.”

Agreement so far has been reached so far with 1 out of 8 unions so. Negotiations are in progress, but this is pretty much a dire situation which needs to be resolved quickly.

Failure to agree will push SAS towards possible bankruptcy protection and bankruptcy.

There are multiple cancellations however today, so check before you travel. This one has also has the ability to turn ugly today, so I’ll be keeping an eye on this too.

For everyone’s sake – I hope SAS survives so that passengers can get home, and employees have job to go to the next day.

It was well reported yesterday that SAS’s future is bleak  with 6,000 jobs for the cut and a SEK3 Billion (or ~US$444 Million) costs savings plan.

More details have emerged with the Norwegian regional airline – Wideroe now on the sale block too, along with SAS Ground Handling.

SAS’s CEO Rickard Gustafson says

“We are facing a very serious situation. That is clear,”

“We have not made money in a number of years and you cannot continue to operate if you don’t make money. We need to create a new business model. We need to stand on our own two feet. That is what we need to demonstrate very rapidly.”

Other assets up for sale make sorry reading with the airline selling some its crown jewels (its some property, even some aircraft engines).

They’re also trying to save money by outsourcing more work to external suppliers including the call centres.

The elephant in the r0oom however is agreement with staff (pilots and cabin crew) with a chilling warning being given out

“The company’s existence is subject to the new collective agreements being reached.“

The plan calls for staff to agree to take pay cuts of up to 17%, and cabin crew pay being cut by an average of 12%.

With SAS’s board meeting again on the 18th November, it could be that time is starting to run out for this carrier unless some serious fixes are found.

SAS’s problems are exhausted by Norwegian Air Shuttle and other low cost carriers eating into its traditional markets. Norwegian is preparing to launch 787 services to Bangkok and New York with a much lower cost base as the crews will be based in Thailand.

Whilst services at the moment are unaffected, I’d be watching extremely carefully what happens next week at the meeting to see if SAS can survive – or if we’ll see the implosion of the airline and something being born out of it that is leaner and meaner…

It seems that pressure from multiple angles has forced SAS to suspend its Copenhagen to Bangkok route.

The route which has been running for over 63 years (and was SAS’s first destination in Asia) will be suspended from 7th April 2013 due to an airline it mentored – Thai Airways International and “Gulf Airlines” – and SAS cannot compete.

Thai Airways International offers direct links from Oslo and Stockholm and Copenhagen as opposed to SAS who ask that you change at Copenhagen for the long haul leg – a convenience to the customer.

Meanwhile, attacking from the other side are the “Gulf Carriers”, who have begun moving into Scandinavian cities, providing much cheaper fares for cost-conscious customers compared to SAS – even with the one-stops in Doha or Dubai.

SAS currently operates it Copenhagen to Bangkok with an Airbus A340-300. SAS will try and make some more money with this aircraft as it expands its USA flying programme when the plane commences a new service from  Copenhagen to San Francisco service which is due to commence on 8th April 2013.

Other airlines are looking at the Bangkok route, with Air France downgrading its service from Paris-CDG to Bangkok, Air Berlin discontinuing its service and handing the route partially over to Etihad (Shuttling passengers to Abu Dhabi and Etihad shuttling to BKK), and even Lufthansa looking at its route to the area.

Certainly, it’s a challenging time in the industry – something that some airlines don’t want as they want to focus on trying to make money….

SAS is refining its North America routes with a couple of announcements today.

First up, is the launch of a six times-weekly service between Copenhagen and San Francisco starting the 8th April 2013.

Copenhagen to San Francisco

SK935 DEPART CPH 1225 ARRIVE SFO 1445 Operates Mon, Wed, Thurs, Fri, Sun
SK935 DEPART CPH 1255 ARRIVE SFO 1515 Operates Sat

Commences: 08/04/13
SK935 operates daily except Tuesdays, and a timetable variation on Sat.
Booked Equipment: Airbus A340-300

San Francisco to Copenhagen

SK936 DEPART SFO 1735 ARRIVE CPH 13:15+1

Commences: 08/04/13
Operates Daily except Tuesdays
Booked Equipment: Airbus A340-300

SAS’s move represents a move to be the first link between Northern Europe and San Francisco.

Meanwhile, SAS is to boost its services into Newark International Airport at around same time (1st April 2013). The new service pattern increase SAS’s Copenhagen to Newark International to 10 times a week

Copenhagen to Newark International Airport

SK909 DEPART CPH 12:25  ARRIVE EWR 14:50 A330-300 (All days except Tues)
SK909 DEPART CPH 12:25  ARRIVE EWR 14:50 A340-300 (Tues Only)
SK901 DEPART CPH 18:25  ARRIVE EWR 20:50 A340-300 (3x - see below)

Commences: 01/04/13
Booked Equipment: As above
SK909 Operates Daily, with equipment variances on Tuesday Service
SK901 Operates Monday, Thursday and Friday ONLY

Newark International Airport to Copenhagen

SK910 DEPART EWR 17:40  ARRIVE CPH 07:15+1 A330-300 (All days except Tues)
SK910 DEPART EWR 17:40  ARRIVE CPH 07:15+1 A340-300 (Tues Only)
SK902 DEPART EWR 23:30  ARRIVE CPH 13:15+1 A340-300 (3x - see below)

Commences: 01/04/13
Booked Equipment: As above
SK910 Operates Daily, with equipment variances on Tuesday Service
SK902 Operates Monday, Thursday and Friday ONLY

SAS has a fair reach of USA Services, connecting:

• Copenhagen, Oslo and Stockholm to New York, Copenhagen
• Stockholm to Chicago
• Copenhagen to Washington DC.

And from the looks of it, it really wants to add more traffic to these destinations.

If you were a a member of Spanair’s Frequent flyer programme, and were Gold or Silver, there is some good news. Some Star Alliance Carriers will now match your status.

BUT… and here’s the big BUT – No miles transferred. In other words, all your earned Spainair miles have gone in smoke.

Star Alliance will be contacting you, but if you’ve heard nothing by February 23rd… you’ll need to contact Star. On the Star Alliance Web site the following is displayed

“Star Alliance offers Status Match to SpanairStar Gold and Silver Card Holders

With Spanair having ceased operations since 27 January this year, the airline’s Frequent Flyer Programme (FFP), SpanairStar, has also been discontinued.

In appreciation of Spanair’s FFP members’ loyalty, all SpanairStar Gold and Silver card holders are being contacted with a status match offer from several Star Alliance member carrier’s FFP. Please note however, that the accumulated miles can unfortunately not be transferred into other Star Alliance member airline FFPs.

If you are SpanairStar Gold or Silver member and still haven’t received the email from Spanair about the SpanairStar Status Match by 23 February, please contact us at status.match@staralliance.com and we will direct your concern to Spanair. Please include your name, your SpanairStar status and your SpanairStar FFP number”

Now which airlines are offering a match? Well… here is the list:

• Aegean Miles & Bonus
• Air Canada Aeroplan
• Air China PhoenixMiles
• Air New Zealand Airpoints
• SAS EuroBonus
• TAP Victoria
• Thai Royal Orchid Plus
• United Mileage Plus
• US Airways Dividend Miles

Now I can’t advise you what will be best for you (as to be honest, all the programmes have their up and downs. But you’ll notice one small airline is missing from that list: Lufthansa with it’s Miles and More programme…

It’s Sunday again, so it must be time for some airplane art.

Today it’s a SAS Airbus A330-300 parked up a Newark International Airport after completing its long journey from Oslo.

More Airplane art of course next week!

Time for this week’s airplane p0rn.

And this is one taken on the ground in Downtown Seattle – about a block from the Space Needle – A SAS Airbus A340 climbing out and beginning its long flight back to Scandinavia.

More Airplane p0rn next week!

Well we know that SAS are reorganising themselves as they’ve suffered in the current climate, and are in the process of disposing 21 of its MD-80 fleet.

It seems that Allegiant Air was in the market for some aircraft, and thus have brought 18 MD-80′s.

These veteran aircraft are currently on the ground and are between 19 and 25 years old, so they’re easy money for SAS to make with a total sale value of 200 million Swedish Krona.

This move sees Allegiant boost its MD-80 fleet to 52 units, and SAS reduce its MD fleet to 24 units for intra-Scandinavia use (although knowing SAS, they’ll be be on Intra-Europe routes faster that you can think)