- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Route Maps
- Fast Fact Report
- Airline Status
- IATA Code
- ICAO Code
- Corporate Address
- Frosundaviks Alle 1
- Main hub
- Copenhagen Kastrup Airport
- Business model
- Full Service Carrier
- Domestic | International
- Airline Group
- Part of SAS Group
- Frequent Flyer Programme
- Star Alliance
- Joined Alliance
- Association Membership
- Codeshare Partners
- Adria Airways
All Nippon Airways
LOT Polish Airlines
South African Airways
Based in Stockholm, Scandinavian Airline System (SAS) is the national airline of three Scandinavian States; Denmark, Norway and Sweden, operating three primary hubs at Copenhagen-Kastrup Airport, Stockholm-Arlanda Airport and Oslo Gardermoen Airport. SAS’ network consists of extensive regional services within Scandinavia and Europe as well as international services to Asia and North America. SAS is member of the Star Alliance.
Location of SAS main hub (Copenhagen Kastrup Airport)
SAS Group share price
2,134 total articles
125 total articles
CityJet: regional airline consolidator is re-energised & refocussed after second change of ownership
It is just over six months since CityJet chairman, Pat Byrne, and a group of private investors bought the airline from previous owner Intro Aviation. Meanwhile, CityJet has received its first two Sukhoi Superjets this summer. With 13 more scheduled for delivery by 2018 they will be replacements for its ageing BAE146 fleet at London City Airport, but the Superjet first needs steep approach certification. This will be important in restoring profitability to CityJet's refocused core network at London City.
In addition, CityJet has a growing presence in contract flying for other airlines. It inherited an Air France wet-lease operation at Paris CDG from its days under Air France-KLM ownership and acquired an SAS regional operator a year ago. Recent reports of possible consolidation involving CityJet in the European regional contract flying space demonstrate that it now has a higher profile and greater credibility than at any time for many years.
Although unconfirmed, these reports link CityJet with another SAS regional operator, Cimber, and with Stobart Air, which operates wet-lease capacity for Aer Lingus and Flybe. Even if they do not come to fruition, reports of such transactions are a sign of CityJet's increased status and revitalisation after years of near invisibility as part of Air France-KLM.
Oslo Gardermoen Airport has sat out the recent boom in Asian growth. This is not just in comparison to neighbouring Helsinki's rapid Asian growth in tandem with Finnair, but even more broadly. Norway is the largest Western European country without a flight to China, and is the smallest of Western European countries with flights to Asia. Its only destination is Bangkok.
This is a juxtaposition to Norway's strong credentials: maritime and gas businesses, a wealthy population (much more so than Finland's) for outbound travel, and untapped year-round tourism opportunity – not just for Oslo but for all of Norway, from fjords in the summer to northern lights in the winter.
New management at Oslo airport wants to regain the initiative in Asia. Norway has the credentials to follow Iceland's sudden rise in tourism, especially from China. Management is considering foreign airlines, since SAS is in low-growth mode and has historically favoured Copenhagen, and Norwegian Air Shuttle lacks US approval for the NAI license it seeks – but perhaps more importantly is unable to access Russian overflight rights.
The last of Europe's leading listed airline groups reported 1H2016 results on 19-Sep-2016. This now allows analysis of the aggregate trends for the 15 largest European airline groups listed on the stock market that publicly report financial results for the first six months of the calendar year. These groups account for 53% of ASKs flown to/from/within Europe by all airlines and 71% of ASKs flown by European airlines (week of 19-Sep-2016, source: OAG).
Collectively, these 15 groups enjoyed an improvement in operating margin in 1H2016 versus 1H2015. This was achieved in spite of heavy downward pressure on unit revenue – thanks largely to lower fuel prices, which allowed them to cut unit costs more rapidly. However, there was a wider range of levels of profitability in the individual results compared with last year.
Moreover, in margin terms, there was a trend towards the strong getting stronger and the weak getting weaker. Further, there has been a number of profit warnings in the sector – particularly since the UK's Brexit referendum. This may mean that further improvements in the aggregate results of Europe's listed airline sector will be harder to achieve in 2017.
Airports in the US energy capital of Houston appear to be effectively weathering the downturn in that business sector due, in part, to a diversification scheme undertaken three to four years ago. This scheme was designed to shore up the number of foreign airlines serving the area’s largest airport – Houston Intercontinental. International passenger growth at the airport has helped to alleviate some of the pressure created by fewer domestic connecting passengers from its biggest operator United.
Houston Hobby is also posting solid growth, partially attributable to new transborder services that Southwest started up from a new international terminal at the airport in late 2015. The new service has helped to sustain overall passenger growth of 1.3% in the Houston area for 1H2016. For the first five months of 2016 Hobby recorded 10% passenger growth year-on-year.
With two airports offering commercial service for the metro area Houston has a unique operating profile. Southwest’s dominance at Hobby and Frontier, and Spirit’s operations at Intercontinental, also ensure a solid mix of full service and low cost airlines.
Part 1 of CAPA's Brexit follow-up report assessed the ASK exposure of UK and non-UK airlines to market segments where existing traffic rights could potentially change once the UK finally leaves the European Union. This second part reviews recent comments by leading European-listed airlines on how they see the impact of Brexit, both in the short term and in the longer term. Most of them acknowledge that there are considerable uncertainties, while simultaneously insisting that they will not be significantly affected in the long run.
There have been two initial impacts on airlines. First, Brexit has added to economic uncertainty, thereby muting demand and lowering yields. The magnitude and duration of this impact is unpredictable. Secondly, the consequent weakening of the GBP has made outbound international travel from the UK more expensive and less appealing, and lowered the value of GBP revenue earned by airlines.
The longer term impact will depend on whatever new traffic rights regime is negotiated between the UK and the EU. As a number of the airlines have acknowledged, this remains unknown and is, indeed, unknowable until the UK formally triggers its exit from the EU and then completes its two-year exit negotiations.
CAPA's previous analytical coverage of the UK referendum vote to leave the European Union flagged several questions surrounding UK airlines' future access to the European single aviation market. Traffic rights post-Brexit will depend heavily on the wider relationship between the UK and the EU and its markets. In turn, this may depend on how far the UK is prepared to go in embracing the EU's four key freedoms: the movement of capital, goods, services and people.
The UK has not yet triggered its formal two-year exit negotiation period and all aspects of its future relationship with the EU remain unknown. However, politicians in the UK are very reluctant to accept the continued freedom of movement of people, so existing airline market access is likely to be compromised in some way.
Rather than speculate on how negotiations might proceed, this report identifies the main market segments that could be affected by changes to the traffic rights regime, and evaluates the ASK exposure of airlines from the UK and from countries in Europe's single aviation market to these segments. A further report will review recent comments by Europe's leading listed airlines on how they see the impact of Brexit.