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13-Aug-2009 8:53 AM

SAS announces new SEK2 billion cost cutting programme

SAS announced (12-Aug-09) plans to launch an "entirely new" cost cutting programme, amounting to SEK2 billion to generate "sustainable competitiveness". This programme, which is in addition to SEK4.5 billion in savings under 'Core SAS', includes establishing fully competitive collective agreements for flight deck and cabin personnel, a principle for optimizing production to make greater use of the most competitive production resources and further efficiency enhancements in the Group's administration. These measures will entail further reductions corresponding to 1,000-1,500 full time employees. [more]

SAS: "The measures we are implementing under Core SAS are ahead of schedule and are generating a significant earnings effect. Despite this progress, additional measures are required to manage the unique, fierce competition in today's highly challenging market. Accordingly, it is essential that we now completely close SAS's cost gap with our competitors. This is a matter of competing on equal conditions and, ultimately, about the survival of SAS," President and CEO, Mats Jansson. Source: SAS, 12-Aug-2009.

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