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Wednesday, July 6, 2011

Included In This Article Are Some Highlights From Scandinavian Airlines For Today's Travelers.

By Lex Simian Xavier


Scandinavian Airlines is not the only airlines born out of war time eras in the twentieth century. One common attribute these start-up airlines shared with Scandinavian Airlines was their steadfastness. It takes a unique person to manage an airline and make it profitable. It's not a job for the faint-hearted. Two attributes that are observed in the airlines that succeed are innovation and risk-taking. If you look at the history of Scandinavian Airlines you will see that this is a characteristic they displayed when they were the first airline in the world to deploy a route over the North Pole in 1954. This new route was very popular with Hollywood and production people who had to be in Europe. SAS realized a new class of passengers and an increase in revenue. This report will endeavor to bring you more interesting information about Scandinavian Airlines.

It is not surprising that SAS was formed as a business partnership involving entities across Scandinavia. The date of birth for the company is August 1, 1946, and merely one year after the end of the second world war. The era after the end of WW II heralded a new beginning for countries all around the world and, therefore, an association such as that between the airlines of these three countries would not be unexpected. One month after the founding of this company, in September of 1946, the first flight took place. In 1951, the SAS Consortium was created with the coordination of European operations as their prime mission. Each country, after the Consortium was formed and shares were allotted, divided their respective ownership interest half and half with private investors and their governments.

All airlines seem to have one thing in common, and that is a highly dynamic investor and ownership portfolio. But that is really not too surprising when you consider the difficulties with financial operations. So once more, in the 1990s, Scandinavian Airlines went through more ownership changes and restructuring of their financial investment holdings. Nevertheless, this didn't stop SAS from adding other airlines to its acquisitions. They also bought 95% of Spanair, the 2nd largest airline in Spain, and Air Greenland. An agreement was reached with a Catalonian group in 2009 for SAS to divest more than 80% of its holdings in Spanair.

The current state of affairs for Scandinavian Airlines finds them continuing in the tradition of a global air passenger carrier. Scandinavian Airline's long-distance routes include destinations in both North America and Asia. The two primary hubs for SAS are Stockholm Sweden and Copenhagen Denmark, and it is from these locations that most international traffic is served. SAS International is the division that handles the intercontinental traffic for SAS and employs slightly less than 1,000 people. This International Division operates separately from the Denmark, Sweden, and Norway European traffic divisions.

The current state of affairs for Scandinavian Airlines finds them continuing in the tradition of a global air passenger carrier. Internationally, SAS has long-distance routes that cover destinations in North America and Asia. Their two main hubs in Stockholm and Copenhagen are the launching points for most of their international travelers. The international division of the airlines is known as Scandinavian Airlines International, not surprisingly, and the number of employees is a little under 1,000. This International Division operates separately from the Denmark, Sweden, and Norway European traffic divisions.

It is clear that the vigorous acquisition efforts of Scandinavian Airlines has paid off over the years. They were instrumental in the creation of the global Star Alliance group of airlines during the 90s. To increase the capabilities of each airline, such business alliances exist to provide extra financial security. Air and aviation are hyper competitive, therefore, there is strength in numbers. The divisions that make up the SAS since the 90's are Denmark, Norway, and Sweden. SAS Global is the international flight division.

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