Scandinavian Airlines

Founding

The airline was founded on 1 August 1946, when Svensk Interkontinental Lufttrafik AB (an airline owned by the Swedish Wallenberg family), Det Danske Luftfartselskab A/S, and Det Norske Luftfartselskap AS (the flag carriers of Denmark and Norway) formed a partnership to handle the combined air traffic of the three Scandinavian countries.^[20] The first president of SAS was Per Norlin.^[21] On 17 September 1946, operations started under the new entity and the first international service was conducted between Stockholm and New York.^[22] Within a half-year, SAS set a new record for carrying the heaviest single piece of air cargo across the Atlantic on a scheduled passenger airliner, by shipping a 1,400-pound electrical panel from New York to the Sandvik company in Sweden.^[23]

In 1948, the Swedish flag carrier AB Aerotransport joined SAS and quickly coordinated its European operations between both carriers. Three years later, the companies formally merged to form the SAS Consortium.^[22] When established, ownership of the airline was divided between SAS Danmark (28.6%), SAS Norge (28.6%), and SAS Sverige (42.8%), all of which were owned 50% by private investors and 50% by their governments.^[24]

Transpolar route

During 1954, SAS became the first airline to commence scheduled flights on a polar route, flying Douglas DC-6Bs from Copenhagen to Los Angeles with stops in Søndre Strømfjord (now Kangerlussuaq) in Greenland and Winnipeg in Canada, pioneering a commercial route that marked a milestone in transpolar aviation history.^[22] By the summer of 1956, traffic on the route had justified the frequency to be increased to three flights per week. The service proved relatively popular with Hollywood celebrities and members of the film industry, and the route turned out to be a publicity coup for SAS. Thanks to a tariff structure that allowed free transit to other European destinations via Copenhagen, this trans-polar route gained increasing popularity with American tourists throughout the 1950s.^[3]

In 1957, SAS was the first airline to offer around-the-world service over the North Pole via a second polar route served by Douglas DC-7Cs flying from Copenhagen to Tokyo via Anchorage International Airport in Alaska.^[22] The flight via Alaska was a compromise solution since the Soviet Union would not allow SAS, among other air carriers, to fly across Siberia between Europe and Japan, and Chinese airspace was also closed.^[3]

Jet era

In 1959, SAS entered the jet age, having procured a number of French-built Sud Aviation Caravelles as the company's first jetliner.^[22] During the following year, another jetliner, the Douglas DC-8, was also inducted into the fleet.^{[citation needed]}

In addition to modern airliners, SAS also adopted innovative operating practices and systems to improve the customer experience. In 1965, it was the first airline to introduce an electronic reservation system.^[22] During 1971, SAS introduced its first Boeing 747 jumbo jet into service.^[25] Prior to the delivery of its first 747s, SAS had formed the KSS maintenance consortium with KLM and Swissair in 1969 to provide a maintenance pool and standardize aircraft specifications for the three airlines' 747 fleets. The consortium later incorporated UTA and was renamed into KSSU to jointly acquire and maintain McDonnell Douglas DC-10 widebody trijets.^[26][27] In 1982, SAS was recognised as the most punctual airline operating in Europe at that time.^[22]

During its first decades, the airline built two large hotels in central Copenhagen, SAS Royal Hotel (5 stars) and the even larger SAS Hotel Scandinavia (4 stars, with a casino on the 26th floor).^[22] In 1980, SAS opened its first hotel outside of Scandinavia, the SAS Kuwait Hotel. By 1989, SAS's hotel division owned a 40 percent share in the Intercontinental Hotels Group.^[22] Following the deregulation of commercial aviation in Europe and the competitive pressures from new rivals, SAS experienced economic difficulties (as did many incumbent flag carrier airlines) this heavily contributed to the airline's decision to sell its hotel chain to the Radisson Hotel Group during 1992.^[22]

Consolidation, acquisitions, and partnerships

In 1981, Jan Carlzon was appointed as the CEO of SAS; during his tenure, the company underwent a successful financial turnaround of the company starting in 1981 and who envisioned SAS ownership of multiple airlines worldwide. SAS gradually acquired control of the domestic markets in all three countries; this was achieved by acquiring full or partial control of various competing local airlines, including Braathens and Widerøe in Norway; Linjeflyg and Skyways Express in Sweden; and Cimber Air in Denmark. During 1989, SAS acquired 18.4% of the Texas Air Corporation, the parent company of Continental Airlines, in a bid to form a global alliance. However, this did not come about and the stake in the Texas Air Corporation was subsequently sold on. During the 1990s, SAS also acquired a 20 percent stake in British Midland, as well as purchasing 95 percent of Spanair, the second-largest airline in Spain, in addition to Air Greenland.^{[citation needed]}

During the early 1990s, SAS unsuccessfully tried to merge itself with KLM, along with Austrian Airlines and Swissair, in a proposed combined entity commonly called Alcazar.^[28][29] However, months of negotiations towards this ambitious merger ultimately collapsed due to multiple unsettled issues; this strategic failure heavily contributed to the departure of Carlzon that same year and his replacement by Jan Reinås.^[21] The airline marked its 50th year of operation on 1 August 1996 with the harmonization and name of SAS's parent company to SAS Danmark A/S, SAS Norge ASA and SAS Sverige AB.^[22] During May 1997, SAS became a founding member of the global Star Alliance network, joining with airlines such as Air Canada, Lufthansa, Thai Airways International, and United Airlines.^[30][31]

In June 2001, the ownership structure of SAS was changed, with a holding company being created in which the holdings of the governments changed to Sweden (21.4%), Norway (14.3%), and Denmark (14.3%), while the remaining 50 percent of shares were publicly held and traded on the stock market.^[22] During 2004, SAS was again restructured, being divided into four separate companies: SAS Scandinavian Airlines Sverige AB, SAS Scandinavian Airlines Danmark A/S, SAS Braathens AS, and SAS Scandinavian International AS. SAS Braathens was re-branded SAS Scandinavian Airlines Norge AS in 2007.^[32][22] However, during October 2009, the four companies were once again united into one company, named SAS Scandinavian System AB.^{[citation needed]}

2009-2021: Restructuring

This section needs to be updated. The reason given is: recent crisis and strike. (July 2022)

With the growth of budget airlines and decreasing fares in Scandinavia, the business experienced financial hardship. By 2009, competitive pressures had compelled the airline to launch a cost-cutting initiative. In the first step of which, the business sold its stakes in other companies, such as British Midland International, Spanair, and airBaltic, and began to restructure its operations.^[33][34][35] During January 2009, an agreement to divest more than 80 percent of the holdings in Spanair was signed with a Catalan group of investors led by Consorci de Turisme de Barcelona and Catalana d'Inciatives.^[36] These changes reportedly reduced the airliner's expenses by around 23 per cent between 2008 and 2011.^[37]

In November 2012, the company came under heavy pressure from its owners and banks to implement even heavier cost-cutting measures as a condition for continued financial support. Negotiations with the respective trade unions took place for more than a week and exceeded the original deadline; in the end, an agreement was reached between SAS and the trade unions that would increase the work time, cutting employee's salaries by between 12 and 20 percent, along with reductions to the pension and retirement plans; these measures were aimed at keeping the airline as an operating concern. SAS criticized how it handled the negotiations, having reportedly denied facilities to the union delegations.^[37]

During 2017, SAS announced that it was forming a new airline, Scandinavian Airlines Ireland, operating out of Heathrow Airport and Málaga Airport to fly European routes on its parent's behalf using nine Airbus A320neos.^[38] SAS sought to replace its own aircraft with cheaper ones crewed and based outside Scandinavia to compete better with other airlines.^[39][40] The Swedish Pilots Union expressed its dissatisfaction with the operational structure of the new airline, suggesting it violated the current labour-agreements.^[41] The Swedish Cabin Crew Union also condemned the new venture and stated that SAS established the airline to "not pay decent salaries" to cabin crew.^[42]

In 2018, SAS announced that it had placed an order for 50 Airbus A320neo narrow-body jetliners to facilitate the creation of a single-type fleet. That same year, the Norwegian government divested its stake in the airline.^[22] As part of an environmental initiative launched by San Francisco International Airport (SFO), SAS flights operating out of SFO since December 2018 have been supplied with sustainable aviation fuel from Shell and SkyNRG.^[43][44]

In July 2021, the European Commission has approved a Swedish and Danish aid measure of approximately US$356 million to support SAS.^[45] In September 2021, SAS announced that it would establish two operating subsidiaries; SAS Connect and SAS Link, with its existing SAS Ireland subsidiary to be rebranded as the new SAS Connect, while SAS Link would initially operate the airline's Embraer E195 aircraft, and the operations of both companies to begin by early 2022.^[46][47][48]

2022-2024: Sweden's exit, Air France-KLM entry and alliance shift

Following little progress with SAS's restructuring plan, SAS Forward, the Swedish government announced on 7 June 2022 that Sweden, which owns 21.8% of the company, would not inject new capital into SAS and that it did "not aim to be a long-term shareholder in the company".^[49][50] The airline filed for Chapter 11 bankruptcy protection in the United States on 5 July 2022.^[51]

In September 2022, SAS announced it was returning at least ten aircraft to lessors, including five long-haul aircraft - amongst them two barely two year old Airbus A350s. This measure is a result of the closure of Russian airspace for flights to Asia which caused a severe drop in demand and efficiency.^[52] As of November 2022, SAS announced it was searching for a buyer for one of their Airbus A350 aircraft.^[53]

In October 2023, it was announced that the Air France–KLM Group would be investing alongside the Danish government and two investment firms in SAS, with the airline group buying up to 20% of SAS shares following the airline's ongoing Chapter 11 process in the United States. With the investment (if approved by the EU Commission, and respective US and Swedish courts),^[54] SAS will leave Star Alliance and join SkyTeam alongside Air France–KLM.^[17]

On 19 March 2024, US Bankruptcy Court approved the new restructuring plan and investment, allowing SAS to exit Chapter 11 by mid-2024.^[55][56] It also applied for company reorganization in Sweden on 27 March.^[57] announced it would leave Star Alliance by 31 August 2024, becoming a SkyTeam member the next day, as confirmed on 29 April.^[19][58][59] On 12 June, Stockholm District Court announced that it will held a hearing for the company reorganization on 12 July,^[60] eventually approving it on 19 July.^[61] On 28 June, European Commission announced that it approved the restructuring plan.^[62][63]

In September 2024, Scandinavian Airlines announced it would terminate its wet-leasing contract with Xfly by November 2024.^[64] On 17 September 2024, SAS announced a partnership with Braathens Regional Airlines (BRA), designating them as a subcontractor to operate flights from Stockholm Arlanda Airport starting in 2025, with BRA announcing it would cease operating its own domestic flight network from Stockholm Bromma Airport.^[65] This collaboration, valued at approximately SEK 6 billion over seven years, aims to strengthen SAS's domestic network in Sweden, increasing daily departures to destinations such as Visby, Gothenburg, Malmö, and Luleå.^[66]

On 18 September 2024, just a month after the completion of the restructuring, SAS announced expansion of the route network from Copenhagen Airport with 15 new destinations from Summer 2025. Following the new ownership structure, the airline will focus on positioning the airport as the airline's main hub for international travel.^[67]

Business trends

The key trends for Scandinavian Airlines Group (which includes SAS Cargo, SAS Ground Handling, and SAS Tech), are shown below (since 2012, for years ending 31 October):^[68]

Head office

Scandinavian Airlines' head office is located in the SAS Frösundavik Office Building in Frösundavik [sv], Solna Municipality, Stockholm County.^[85] Between 2011 and 2013, the head office was located at Stockholm Arlanda Airport (ARN) in Sigtuna Municipality, Sweden.^[86] The SAS Cargo Group A/S head office is in Kastrup, Tårnby Municipality, Denmark.^[87]

The SAS Frösundavik Office Building,^[88][89] was designed by Niels Torp Architects and built between 1985 and 1987. The move from Solna to Arlanda was completed in 2010.^[90] A previous SAS head office was located on the grounds of Bromma Airport in Stockholm.^[91] In 2013 SAS announced that it once again would relocate to Frösundavik.^[85]

Codeshare agreements

Scandinavian Airlines has codeshare agreements with the following airlines:^[95]

Interline agreements

Scandinavian Airlines has interlining agreements with the following airlines:

• Air Greenland^[102]
• Pakistan International Airlines^[103]

Current fleet

As of February 2024^[update], Scandinavian Airlines operates an all-Airbus fleet composed of the following aircraft:^[104][105]

Additionally, SAS operates a single Boeing 737-700 equipped for MEDEVAC on behalf of the Norwegian Armed Forces and the Norwegian Directorate for Health and Social Affairs. This last remaining 737 is to be retired and replaced by a similarly configured Airbus A320neo.^[111]

As of December 2023^[update], Scandinavian Airlines also has the following aircraft operated by its subsidiaries and other carriers under wetlease agreements:

Future fleet plans

Short haul

On 20 June 2011, SAS announced an order for 30 new A320neo aircraft as part of its fleet harmonization plan.^[116] SAS' stated goal is to have an all-Airbus fleet at its bases in Stockholm and Copenhagen by 2019, with a mixed A320neo and A320ceo fleet operation at both bases. The base in Oslo was then operate mostly Boeing 737-800 aircraft, with a few 737-700s also being retained at the time. The older, smaller 737-600s were disposed of in 2019.^[117] The first order of A320neos was delivered in October 2016.^[118]

In April 2018, SAS announced an order of 50 more A320neos to replace all 737NGs and older A320ceos in service as part of its goal to have an all-Airbus fleet by 2023.^[107] The last Boeing 737 has been phased from the fleet on 19 November 2023. This Boeing 737-700, registered LN-RRB and named "Dag Viking", was operating as SAS Flight 737.^{[citation needed]}

Livery

In September 2019, SAS unveiled an all-new livery,^[120] which will initially be showcased on a new A350 and an A320neo, before gradually being rolled out to the whole fleet. SAS expects the whole fleet to be repainted by 2024. The fuselage is kept in a light beige with the "SAS" logotype in silver displayed prominently across the height of the front section. The vertical stabilizer and adjacent parts of the fuselage are blue, with the SAS logo in white shown on the stabilizer. The blue area on the rear fuselage extends towards the front in a curved line. The horizontal stabilizers are beige (except for the ATR-72 aircraft, where they are blue). Winglets are blue as well. The engine casings are beige with a vertical blue stripe at the front and bear the word "Scandinavian" in blue. "Scandinavian" in large blue letters is also displayed on the underbelly of the aircraft.^[121][122]

The previous livery was introduced in 1998 and was designed by SthlmLab (Stockholm Design Lab). SAS aircraft look predominantly white; however, the fuselage is in a very light beige (Pantone Warm Gray 2/Pantone 9083C) with "Scandinavian" above the windows in silver lettering (Pantone 877) and "Airlines" below the windows in white. The typeface used is Rotis Semi Serif. The vertical stabilizer (and winglets) are painted blue (Pantone 2738C) with the classic white SAS logo on it. It is a variant of the traditional SAS logotype, slimmed slightly and stylized by the design company Stockholm Design Lab as part of the SAS livery change. The engine casing is painted in scarlet (Pantone Warm Red/Pantone 179C) with the word Scandinavian in white, the thrust reversers in the color of the fuselage. All other text is painted in Pantone Warm Gray 9. The design also features stylized versions of the Scandinavian flags. All aircraft are named, traditionally after Vikings.^{[citation needed]}

Apart from the standard livery, SAS also operates an Airbus A319-100 in retro livery.

SAS Business

On long-haul flights business class, called SAS Business, is offered and features wide sleeper seats. On the A330s and A350s seating is 1-2-1 on seats that convert into 196–202-centimetre (77–80 in) flat beds, with power sockets and a 15-inch (380 mm) entertainment screen. On the A321LRs business class has alternating 2-2 and 1-1 seating, all convertible to flat beds.^[123]

SAS Plus

Plus is SAS' premium economy class. On the A330s seating is 2-3-2, 2-4-2 on the A350s and on the A321LR it is 2-2. The seats offered on SAS Plus are wider than those in the SAS Go section.

On European flights, SAS Plus tickets are refundable and include a meal, a double checked-in baggage allowance, and access to lounges and fast track security at the airport. The SAS Plus passengers are seated at the front of the aircraft and passengers can choose their seat at booking for free, but the seats there are otherwise the same as the SAS Go seats. The two-class system was introduced in June 2013, when business class was eliminated from intra-European flights.^[124]

SAS Go

SAS Go, or economy, offers 3-3 seating on intracontinental flights, 2-4-2 on the A330s and 3-3-3 on the A350s.

SAS offers free coffee and tea to GO passengers on short-haul services, except very short flights like Bergen-Stavanger or Stockholm-Visby. Meals are served to all passengers on long-haul flights.

SAS Go Light

SAS Go Light is a variant of SAS Go with no checked luggage included. Tickets are sold in the same booking class as SAS Go and are otherwise identical. As of 14 December 2017, SAS Go Light is available on both European and long-haul flights. SAS Go Light is aimed at competing with low-cost carriers for those who travel with hand luggage only. Extra luggage allowance for Star Alliance Gold, and EuroBonus Silver, Gold, and Diamond members does not apply on SAS Go Light tickets and is only valid for EuroBonus Pandion members.

EuroBonus

SAS's frequent-flyer program is called EuroBonus. Members earn points on all SAS flights, Widerøe routes with no SAS competition (except Public Service Operations) as well as on Star Alliance flights. Around 50 percent of SAS' total revenues are generated by EuroBonus members. By August 2015, the EuroBonus program had in excess of four million members.^[125]

Wi‑Fi

During May 2018, SAS launched a new high-speed Wi‑Fi Internet access system supplied by Viasat. The new system was announced to enable passengers to stream movies on board. Prior to this, SAS offered Internet access on board on its long haul aircraft and a small number of Boeing 737s. Wi‑Fi Internet access is free for Eurobonus Gold and Diamond members and those with Business class ticket. Otherwise, it can be purchased with EuroBonus points or for a fee.^[126]

Non-aviation related incidents