SAS reinstates Palma as costs shrink

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Scandinavian Airlines's (SAS) decision to reinstate its Copenhagen-Palma de Mallorca route comes after improvements in the company's internal cost structure and continued growth of the market to the Balearic island.

SAS will restart the route from 3 September, initially flying twice weekly and stepping up to a five-times weekly frequency from the start of the summer 2012 season.

The sector will initially be served with an MD-80 but later by an Airbus A321 as SAS phases out the former type, says vice-president, brand marketing and EuroBonus, Per Moller Jensen. EuroBonus is SAS's frequent flyer programme.

Jensen says that two factors are behind the decision to go back onto the route. The company's Core SAS cost-cutting programme. which produced a greater-than-expected total earnings effect of SKr3.6 billion ($559 million) in 2010 means that "our cost structure is now much better than before". Additionally, the route is showing increasing potential; not only is Mallorca a popular holiday destination for Danes, particularly in winter, but many have second homes on the Mediterranean island.