SAS to start up flag of convenience operation
02-06-2017, 04:52 AM
#1
Gets Weekends Off
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Joined APC: Oct 2015
Posts: 147
SAS to start up flag of convenience operation
Ive been saying it for a while: its not Norwegian we need to be worried about, its the precedent Norwegian is setting. Just like the US Maritime industry, we can and should expect more and more companies to adopt or be established under this model. The question is will the big 3 be able coexist with these flag of convenience operators, unlike the US cruise lines were? A lot of you say yes, but I think it is more likely history will repeat itself.
SAS complements its production with a new air operator certificate (AOC) and bases outside Scandinavia
February 1, 2017 08:30 / Capital market, SAS News / English
SAS’s strategy is to focus on those customers who travel frequently to, from and within Scandinavia. SAS continuously develops its offering and network to meet this customer group’s needs. The air travel market in Europe is experiencing intense price pressure and rising demand for leisure travel. To secure the company’s long-term competitiveness and to take an active role in the growing leisure market, SAS is now taking a further step to reduce the cost differential to newly established competitors.
If SAS is to secure the long-term profitability of key traffic flows and actively participate in the growing leisure market, SAS must have the same preconditions as other market participants. Therefore, SAS has decided to establish a new AOC in Ireland with operational bases in London and Spain. The aim is for the new operations to be up and running from winter 2017/2018, providing a smaller number of departures as a complement to SAS’s existing production.
“In line with SAS’s strategy of focusing on those customers who travel frequently to, from and within Scandinavia, the majority of SAS’s airline operations will continue to be based in Scandinavia moving forward. The establishment of new bases means we can complement our Scandinavian production and, in time, build an even broader network with a superior schedule to the benefit of our customers,” says Rickard Gustafson, SAS President and CEO.
The aircraft based in London and Spain will have the same customer offering and appearance as other airline operations at SAS and with corresponding requirements in terms of safety and standards.
At the start, smaller start-up costs for the new AOC and new bases are expected to impact earnings. Initially, the financial effects from operations at these bases will be small, but will gradually increase as operations grow.
In parallel with establishing the new AOC, SAS has planned further structural measures for its operations, in line with those announced in the 2015/2016 year-end report.
February 1, 2017 08:30 / Capital market, SAS News / English
SAS’s strategy is to focus on those customers who travel frequently to, from and within Scandinavia. SAS continuously develops its offering and network to meet this customer group’s needs. The air travel market in Europe is experiencing intense price pressure and rising demand for leisure travel. To secure the company’s long-term competitiveness and to take an active role in the growing leisure market, SAS is now taking a further step to reduce the cost differential to newly established competitors.
If SAS is to secure the long-term profitability of key traffic flows and actively participate in the growing leisure market, SAS must have the same preconditions as other market participants. Therefore, SAS has decided to establish a new AOC in Ireland with operational bases in London and Spain. The aim is for the new operations to be up and running from winter 2017/2018, providing a smaller number of departures as a complement to SAS’s existing production.
“In line with SAS’s strategy of focusing on those customers who travel frequently to, from and within Scandinavia, the majority of SAS’s airline operations will continue to be based in Scandinavia moving forward. The establishment of new bases means we can complement our Scandinavian production and, in time, build an even broader network with a superior schedule to the benefit of our customers,” says Rickard Gustafson, SAS President and CEO.
The aircraft based in London and Spain will have the same customer offering and appearance as other airline operations at SAS and with corresponding requirements in terms of safety and standards.
At the start, smaller start-up costs for the new AOC and new bases are expected to impact earnings. Initially, the financial effects from operations at these bases will be small, but will gradually increase as operations grow.
In parallel with establishing the new AOC, SAS has planned further structural measures for its operations, in line with those announced in the 2015/2016 year-end report.
02-07-2017, 07:56 AM
#7
Gets Weekends Off
Joined APC: Dec 2007
Position: 747 captain
Posts: 1,549
Originally Posted by 50SeatsofGrey
The real issue is the flag of convenience scheme. The fact that they use contract labor is just a kick to the beanbag.
How about Copa? You guys are complaining to the high heavens that this will destroy jobs in the US....., Well, How about UCAL forming a flag of convenience company in Panama and competing into the US market with pilots making 60% of what the NAI pilots are making?
Or DAL investing big into Aeromexico and GOL and competing with their mainline workers on the same markets paying a LOT less than what NAI is paying? A captain at Aeromexico makes about 7 or 8 grand a month....., they are flying 787's purchased with the investments of the mainline carriers flying into the US market.
You want to be the cat chasing the laser pointer handled by the same ****faces that sold everyone out with the regional feeds back in the day........., be my guest
02-07-2017, 10:03 AM
#8
Gets Weekends Off
Joined APC: Nov 2012
Posts: 1,083
Originally Posted by The Dominican
Yeah......, you mean like Endeavor? Gojets and the likes?
How about Copa? You guys are complaining to the high heavens that this will destroy jobs in the US....., Well, How about UCAL forming a flag of convenience company in Panama and competing into the US market with pilots making 60% of what the NAI pilots are making?
Or DAL investing big into Aeromexico and GOL and competing with their mainline workers on the same markets paying a LOT less than what NAI is paying? A captain at Aeromexico makes about 7 or 8 grand a month....., they are flying 787's purchased with the investments of the mainline carriers flying into the US market.
You want to be the cat chasing the laser pointer handled by the same ****faces that sold everyone out with the regional feeds back in the day........., be my guest
How about Copa? You guys are complaining to the high heavens that this will destroy jobs in the US....., Well, How about UCAL forming a flag of convenience company in Panama and competing into the US market with pilots making 60% of what the NAI pilots are making?
Or DAL investing big into Aeromexico and GOL and competing with their mainline workers on the same markets paying a LOT less than what NAI is paying? A captain at Aeromexico makes about 7 or 8 grand a month....., they are flying 787's purchased with the investments of the mainline carriers flying into the US market.
You want to be the cat chasing the laser pointer handled by the same ****faces that sold everyone out with the regional feeds back in the day........., be my guest
https://www.quora.com/How-good-is-a-...in-Mexico-City
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