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Nordic market highlights the adapt or perish philosophy

2-Mar-2010

The Nordic market is a good case study of the general requirements for carriers operating in a challenging environment, emphasising the need for airlines to adapt to the environment or perish. While each of major carrier has adopted differing strategies throughout the global economic crisis, the successful ones are those that have been forward thinking and proactive, and have been able to react to opportunities as well as the challenges in a timely manner, within the constraints of their market, product and financial position. [6267 words]

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Subheadings:

  • Norwegian returns to profitability; Finnair reports expected loss; SAS reports wider-than-expected loss in 4Q2009
  • Market reaction differs: Finnair and SAS’s share price suffers; Norwegian gains
  • Growing (ancillary) revenues a boost for Norwegian
  • Yield pressures appear for Norwegian; SAS and Finnair yields continue to suffer
  • Norwegian has a “strong cost advantage on head-on competition”
  • Finnair and SAS Group focus on improving efficiency, reducing costs
  • Finnair adversely affected by industrial unrest in 2009
  • Norwegian boosting market share, while SAS and Finnair reduce capacity 
  • Norwegian, SAS and Finnair handle a combined 11 million pax in 4Q2009 
  • Norwegian, SAS and Finnair handle a combined 11 million pax in 4Q2009 
  • Norwegian’s balance sheet remains modest, but moving in the right direction; Finnair and SAS focus on strengthening the balance sheet
  • Nordic carriers into hedging
  • Norwegian expanding fleet to capitalise on growth opportunities; Finnair and SAS fleet growth slowed
  • SAS’s government shareholders considering selling down 
  • Cimber Sterling reduces full-year outlook….again
  • Iceland hit by the GFC - Icelandair and Iceland Express survive 
  • Icelandair’s RASK up 27% in 2009
  • Iceland Express remains optimistic about its prospects
  • Outlook: Signs of improvement, but a long road to recovery

Graphs and data:

  • Norwegian financial highlights for three months ended Sep-2009
  • EBIT margin for SAS Airlines, Finnair and Norwegian Air Shuttle: 1Q2009 to 4Q2009
  • Finnair financial highlights for three months ended Dec-2009
  • Revenue growth for SAS Airlines, Finnair and Norwegian Air Shuttle: 1Q2009 to 4Q2009
  • SAS Group financial highlights for three months ended Dec-2009
  • Norwegian, Finnair and SAS airlines share price index: Jan-2010 to Feb-2010
  • European Airlines share price growth in 2009
  • Norwegian revenue growth (domestic and international): 4Q2005 to 4Q2009
  • Norwegian Air Shuttle yield growth: May-2008 to Jan-2010
  • SAS Airlines yield growth: 1Q2009 to 4Q2009
  • Finnair yield per passenger growth: 1Q2009 to 4Q2009
  • Unit cost data for SAS Airlines, Finnair and Norwegian Air Shuttle: 1Q2009 to 4Q2009
  • Unit cost among select airlines: based on Norwegian Air Shuttle data
  • Norwegian cost breakdown: 4Q2009 vs 4Q2008 
  • Finnair cost breakdown: 4Q2009 vs 4Q2008
  • SAS Group and Finnair efficiency/cost-saving plans
  • Norwegian’s market share on major routes from Oslo: 2006 to 2009
  • Passenger growth for SAS Airlines, Finnair and Norwegian Air Shuttle: 1Q2009 to 4Q2009
  • Passenger load factor growth for SAS Airlines, Finnair and Norwegian Air Shuttle: 1Q2009 to 4Q2009
  • Capacity (seats) by region for SAS Airlines, Finnair and Norwegian Air Shuttle: 1Q2009 to 4Q2009
  • Finnair turnover by region: 4Q2009
  • SAS Group traffic (RPKs) and capacity (ASKs) growth by region: 4Q2009
  • Norwegian, SAS and Finnair cash and cash equivalents: as at Dec-2009
  • Norwegian, SAS and Finnair hedging activities: as at Dec-2009
  • Norwegian fleet growth: 1Q2008 to 2014
  • Norwegian fleet plan: as at Feb-2010
  • Cimber Sterling revised outlook: Key details
  • Cimber Sterling Danish domestic market share: Feb-2009 to Oct-2009
  • Cimber Sterling destination map
  • Icelandair route map: Feb-2010
  • Iceland Express Summer 2010 Network
  • Iceland Express Winter 2009/2010 schedule
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