In the light of worsening results, Scandinavian Airlines (SAS) is taking further action to cut costs, including a further 2,700 job cuts on top of the 3,500 already announced. For the first nine months of 2002 it made a SKr377 million ($42 million) loss, compared with a loss of SKr350 million for the same period in 2001, although it did make a SKr192 million pre-tax profit in the third quarter.
SAS is increasing its 2005 target for cost savings from SKr4 billion to SKr6.4 billion. The additional savings will come from a variety of operational means such as increasing aircraft utilisation and raising cockpit and cabin crew hours, as well as simplified call centres and increased Internet bookings. The airline intends to reduce its unit costs by 20% by 2005.
Some good news for SAS came from the Swedish Supreme Court. It upheld an appeal court decision that ruled in favour of SAS over the Swedish Civil Aviation Administration (SCAA) on an overpayment by SAS of user charges at Stockholm Airport between 1993 and 1996. The SCAA will now have to repay SAS some SKr600 million.
Source: Airline Business
