SAS to sell stake in bmi
SAS is to sell its 20% stake in Bmi, offload subsidiary Spanair and interest in Air Greenland as part of a major shake-up.
The Scandinavian carrier is to concentrate on its core business of flying to from and within Northern Europe.
“Certain units that do not belong to the core business – such as Spanair – will be sold,” the airline confirmed.
SAS and Lufthansa both have shareholdings in Bmi, which controls the second largest pool of take off and landing slots at Heathrow after British Airways at 12%.
Lufthansa has a shareholding of 30% minus one share and bmi chairman Sir Michael Bishop is the majority shareholder of the UK carrier with 50% plus one share. SAS has had a shareholding in bmi for 20 years.
Air Berlin denied rumours about an alleged takeover of the Spanish airline Spanair.
Chief financial officer Ulf Hüttmeyer: “We have no interest in Spanair. There are no discussions about an investment or takeover.”
The range of non-stop SAS routes and departures will be increased. New concepts for leisure travel will be developed, according to the airline which is to scale back central administration and move its headquarters as part of a plan to cut costs by 2.8 billion SEK by 2011.
Negotiations with affected unions will be started immediately.
“The board believes it will be feasible to implement these measures in 2007-2009,” a statement said.
SAS CEO Mats Jansson said: “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.
“A new co-operation model with the unions will be established. We have to abandon the strike culture that has long existed at SAS.
“We have to stand together behind a new customer-oriented business culture based on the needs, requirements and expectations of customers.
“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.”
SAS admitted that it needs to take action due to a growing number of airlines which are “putting pressure on air fares” for both leisure and business travel.
The airline aims to increase passenger carryings by 20% over four years.
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.
by Phil Davies
Phil Davies
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