SAS opens up a new Swedish airline based in Kastrup for its “Midsize” aircrafts.

SAS, Scandinavian Airlines, opens up a new Swedish airline based in Kastrup for its “Midsize” aircrafts.
Their concrete plans for “midsize” aircraft are closer to reality, they will have a Swedish AOC (certificate for commercial traffic).

A high-ranking source says that SAS will have Copenhagen Kastrup Airport as a base for SAS’s new Swedish subsidiaries. The aircraft type that SAS evaluates as the ultimate “midsize” aircraft is the Brazilian Embrear 195. The aircraft has room for about 130 seats, which is below the segment known as midsize.

For months now, SAS has been concretizing the plans for its new company for medium-sized aircrafts. In the letter to the employees earlier this year, SAS wrote that they had to speed up their efforts to improve cost efficiency. Starting a new company with completely blank papers can be exactly what SAS needs.

SAS comments:

“As SAS previously communicated, we continue to develop our operational platforms to become even more competitive. As for the part we call “Midsize”, it is true that one of the aircraft types we are evaluating is E195. “

The airline giant increased revenues by almost 60 percent and reduced losses by 34 percent in its third quarter, according to the September 1 report. In the report, they also write that SAS is celebrating 75 years in the industry and has a history of successfully adapting to changing market conditions.

Cost savings and reduced personnel costs and streamlining of operations continue to deliver. Can the new subsidiary for medium-sized aircraft be proof that this is exactly what they are doing right now?

SAS is adapting to the reality of a new market, which is increasing the number of flights between the Scandinavian capitals and other important destinations in the network to further improve accessibility. The new company gives them the opportunity to operate in the segment they were in when they operated 737-600 and 737-700. This allows for tougher competition with a focus on more frequent trips. In this situation, they are positioning themselves against the increasingly fierce competition in Scandinavia from low-cost airlines, by being able to offer a smaller number of seats but with more departures.

The fact that SAS is also starting the new airline based in Kastrup raises many thoughts and reflections. Now that we all have tougher competition from Stockholm Arlanda, the question is whether SAS has almost given up on the Swedish market.

Third quarter (May to July 2021)
Revenue:  3,982 million SEK
2020: 2,507 million SEK
Profit before taxes: –1,358 million SEK
2020: –2,071 million SEK
Net profit:  -1,355 million SEK
2020: –2 365 mkr SEK

Photo credit: Scandinavian Airlines