Scandanavian airline SAS has announced that it will be taking measures to strengthen its position as Northern Europe's leading airline. SAS is to concentrate on its core business - flying to, from and within Northern Europe, the home market of its most important customer groups and where SAS' market position is also the strongest. Certain units that do not belong to the core business, such as Spanair, will be sold. Results are to be created for future capital expenditure and development.

"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 CEO Mats Jansson. 

To ensure development and cover future investment needs, the copmpany aims to between now and 2011 increase pre-tax profit to approximately SEK 4 billion per year , while simultaneously lowering costs by SEK 2.8 billion. Measures will be taken to scale back the central administration and move headquarters from Frösundavik. 

Through the new direction, SAS will create over a four-year period the preconditions for growth in all markets and increase the number of passengers by a total of 20 percent. 

Airline operations will be operated by Scandinavian Airlines Danmark, Norge, Sverige and International, Blue 1, Widerøe, airBaltic and Estonian Air. Holdings in other airlines, Spanair, bmi, and Air Greenland, will be sold. 

The future structure and roles of other operations, such as SAS Ground Services (SGS), SAS Technical Services (STS) and Spririt, will be evaluated. The purpose is to determine which parts of its operations SAS should continue to operate on its own and which parts should be operated by other players. This evaluation is taking place during this autumn in consultation with affected employees and other stakeholders. 

The decision about the new direction was made by the SAS Board of Directors on 13 June. Negotiations and discussions with affected unions will be started immediately. The board believes it will be feasible to implement these measures in 2007-2009. 

The strategic plan will be presented at a press conference on Wednesday 13 June, at 17.00 CET at SAS head office, Frösundavik, Solna.