SAS to Sell Airline Units to Cut Costs
Posted on: Thursday, 14 June 2007, 00:03 CDT
Scandinavian Airline System said it would sell several units, including Spanair, in an effort to save $400 million between now and 2001.
Explaining it wanted to generate annual profits of about $657 million by 2011, SAS said it also would sell its 20 percent holding in BMI and its 37.5 percent stake in Air Greenland, The Local reported Wednesday. The company said it also would move from its headquarters in Stockholm.
The company said it would review the structure and roles of SAS Ground Services, SAS Technical Services and its terminal services operation.
Another goal of the restructuring is a 20 percent increase in passengers.
The airline market is changing rapidly. We want to be in the forefront in terms of giving customers the best service and the most attractive fares, said SAS Chief Executive Officer Mats Jansson, adding that a new cooperation model would be established with the company's unions.
We have to abandon the strike culture that has long existed at SAS, Jansson said. This will ensure our future as a strong and independent airline and also give us an opportunity to involve employees in the value that is created through profit sharing and part ownership.
Source: United Press International
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