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sail4fun · 03-02-2009, 08:03

SAS Group launches Core SAS - renewed strategic approach for a competitive and profitable airline, including a rights issue of SEK 6 billion

In response to the current global operating environment and internal challenges and with the aim of strengthening SAS Group's ("SAS") long term competitive positioning and profitability, SAS management and Board of Directors have decided on a new strategic direction for the Group. The renewed SAS strategy, Core SAS, is intended to provide the key elements necessary to support a new competitive SAS, including a new, streamlined and simplified organization. The strategy, the implementation of which will commence in 2009, aims to create an SAS that generates long-term value for shareholders and pro-actively addresses the current industry dynamics, internal challenges and the global recessionary environment.

As a result of the re-organisation, about 3,000 SAS employees will be made redundant. In addition, 5,600 employees will leave the Group as part of operations that will be divested or outsourced. Of these, Spanair accounts for approximately 3,000 employees. Core SAS will result in a more efficient and simplified SAS with a strengthened customer focus.

In brief, SAS's new strategic approach, Core SAS, is built on five pillars:
· Focus on Nordic home market
o Divestment of Spanair, airBaltic, Spirit, Air Greenland, BMI, Estonian Airways, Skyways, Cubic and Trust (of which Spanair is already signed and airBaltic is already signed and closed)
o Certain operations of SAS Ground Services, SAS Technical Services and SAS Cargo are expected to be discontinued and/or outsourced to third parties

· Focus on business travellers and a strengthened commercial offering
o Downsizing of the network by reducing capacity to focus more on profitable business routes which the company, based on 2008 accounts, estimates would have had an pre-tax earnings effect of approximately MSEK 800; fleet reduction within Scandinavian Airlines of about 10 percent in short-haul and 18 percent in long-haul
o "Service and Simplicity" concept to be introduced with expanded customer offering

· Improved cost base
o Cost reduction program of approximately SEK 2.7 billion (excl. collective agreements) running 2009-2011
o Breakthrough in collective agreement negotiations expected to lead to annual savings of approximately SEK 1.3 billion

· Streamlined organization and customer oriented culture
o Operations of national subsidiaries to be transferred into new organization
o Efficiency enhancement of all operations

· Strengthened capital structure
o Rights issue of approximately SEK 6 billion to facilitate the implementation of Core SAS
o Extension of certain debt facilities

The following table sets out the effects that Core SAS would have had on the SAS Group's 2008 results:

Link http://wpy.waymaker.net/client/wayma...fn=wkr0003.pdf

03-02-2009, 08:03	#2
sail4fun ScanFlyer Mile High Club Join Date: Sep 2004 Location: NO Posts: 10,014	Re: SAS - Minus 6 milliarder og 9000 ansatte skal bort SAS Group launches Core SAS - renewed strategic approach for a competitive and profitable airline, including a rights issue of SEK 6 billion In response to the current global operating environment and internal challenges and with the aim of strengthening SAS Group's ("SAS") long term competitive positioning and profitability, SAS management and Board of Directors have decided on a new strategic direction for the Group. The renewed SAS strategy, Core SAS, is intended to provide the key elements necessary to support a new competitive SAS, including a new, streamlined and simplified organization. The strategy, the implementation of which will commence in 2009, aims to create an SAS that generates long-term value for shareholders and pro-actively addresses the current industry dynamics, internal challenges and the global recessionary environment. As a result of the re-organisation, about 3,000 SAS employees will be made redundant. In addition, 5,600 employees will leave the Group as part of operations that will be divested or outsourced. Of these, Spanair accounts for approximately 3,000 employees. Core SAS will result in a more efficient and simplified SAS with a strengthened customer focus. In brief, SAS's new strategic approach, Core SAS, is built on five pillars: · Focus on Nordic home market o Divestment of Spanair, airBaltic, Spirit, Air Greenland, BMI, Estonian Airways, Skyways, Cubic and Trust (of which Spanair is already signed and airBaltic is already signed and closed) o Certain operations of SAS Ground Services, SAS Technical Services and SAS Cargo are expected to be discontinued and/or outsourced to third parties · Focus on business travellers and a strengthened commercial offering o Downsizing of the network by reducing capacity to focus more on profitable business routes which the company, based on 2008 accounts, estimates would have had an pre-tax earnings effect of approximately MSEK 800; fleet reduction within Scandinavian Airlines of about 10 percent in short-haul and 18 percent in long-haul o "Service and Simplicity" concept to be introduced with expanded customer offering · Improved cost base o Cost reduction program of approximately SEK 2.7 billion (excl. collective agreements) running 2009-2011 o Breakthrough in collective agreement negotiations expected to lead to annual savings of approximately SEK 1.3 billion · Streamlined organization and customer oriented culture o Operations of national subsidiaries to be transferred into new organization o Efficiency enhancement of all operations · Strengthened capital structure o Rights issue of approximately SEK 6 billion to facilitate the implementation of Core SAS o Extension of certain debt facilities The following table sets out the effects that Core SAS would have had on the SAS Group's 2008 results: Link http://wpy.waymaker.net/client/wayma...fn=wkr0003.pdf