SARANSK STATE AVIATION ENTERPRISE: Saransk Airport, Saransk, Russia; Year Founded 1999. SSAE is established at Saransk in the spring of 1999 to offer passenger charters throughout the Volga region. The company is part of the state-owned group that also operates Saransk Airport. Orders are placed by Director General Anatoly Zakharov for six Antonov An-24Bs that enter service during the spring, along with a pair of Tupolev Tu-134As, and permit the carrier to offer flights during the summer holiday season to Sochi, Mineralny Vody, and St. Petersburg. In the fall, a long-term contract is signed under which the airline will provide lift for the Saratov-based hockey team Sokol. In addition, aviation services are also provided to the automobile manu-factuer AutoVAZ at Togliatti.
At the beginning of 2000, an An-24B is leased to financially troubled Nizhegorad Airlines (Nizhegorodskiie Avialinii). The Tu-134As are chartered to unnamed airlines in Moscow and Tartarstan, both of which agree to overhaul them at their expense in return for the cost of their leases. The three remaining Antonovs return to summer charter work in April and also introduce a scheduled route to Baku. By October, the carrier has visited 258 different airports.
Following the crash of its last serviceable An-24 in early November, Cheboksary Air Enterprise (Cheboksrskoe A/P) calls upon SSAE for assistance. Upon its delivery on November 20, the fifth SSAE An-24B begins replacement service for Cheboksary on its route from Surgut to Moscow via Cheboksary. It is anticipated that the service may continue for some time as Cheboksary Air Enteprise does not have the 2.6 million rubles required to pay the Irkutsk Aircraft Repair Plant for overhauling its damaged aircraft.
SARATOV AVIATION DIVISION (SARATOVSKI OAO): Russia (1992-1994). This local unit of Aeroflot Russian International Airlines (ARIA) is established at Saratov Airport in 1992 to provide regional domestic scheduled service and international charters. U. K. Davi-dov is named general director and his operations are conducted with 5 Let 410s and 3 Yakovlev Yak-42s.
Operations continue apace in 1993 and the fleet is expanded by the addition of 8 L-410s, 9 Yak-42s, 5 Antonov An-24s, and 17 Mil Mi-2s.
The general downturn in the economy brings change in 1994, as the carrier is reformed into Saravia.
SARATOV AVIATION FACTORY (SARATOVSKI AVIAT-SIONNY ZAVOD): Russia (1994-1995). The local aircraft manufacturing concern at Saratov is granted permission in early 1994 to establish an air transport arm with which to earn funding to replace that cut by the state. V. A. Yermishin is placed in charge of the ad hoc passenger and cargo charter operation and is given 5 Yakovlev Yak-40s with which to launch revenue services. These can only be maintained for a year.
SARAVIA: Ulitsa Zhukovskogo St 25, Saratov Airport, Saratov, 410010, Russia; Phone 7 (8452) 642 969; Fax 7 (8452) 646 515; Http://www. saravia. ru; Code 6SV; Year Founded 1994. Saratov Aviation Division (Saratovskii OAO) is reformed at Saratov in 1994. Yuri Davidov becomes general manager and the fleet includes 13 Let 410s, 9 Yakovlev Yak-42s, 5 Antonov An-24s, plus 15 helicopters. Enplane-ments total 199,946.
CEO Davidov’s 42 aircraft transport a total of 167,600 passengers in 1995, a decline of 19.3%. Cargo traffic, on the other hand, increases by 9% to 5.58 million FTKs.
Flights continue without incident during the remainder of the decade.
On December 20, 2000, the company joins with BAL Bashkiri Airlines (Bashkirskie Avialinii Aviakompaniya), Nizhegorad Airlines (Nizhegorodskiie Avialinii), and Samara Airlines (Samara Avialinii)
To form a joint marketing agreement designed to keep open the air routes in the Volga Federal District. The plan is similar to one announced in Moscow earlier in the month by Domodedovo Airlines, Chelai-Chelyabinsk Airlines (Chelyabinsk Chief Aviation Enterprise), Kras Air (Krasnoyarsk Avialinii-KrasAir), and Avia Express Cruise. Details concerning possible joint schedules, tariff adjustments, and fleet combinations are not provided to the media.
At the end of the year, a homepage is opened on the Internet’s World Wide Web.
SARO (SERVICIOS AEREAS RUTAS ORIENTE, S. A. de C. V.): Hidalgo #2724, Col Jardin Obisrado, Monterrey, 64000, Nuevo Leon, Mexico; Phone 52 (83) 301 190; Fax 52 (83) 330 779; Code UF; Year Founded 1991. SARO is established at Monterrey in 1991, its owners hoping to become competitors to the majors, Mexicana Airlines, S. A. de C. V. and Aeromexico (2) (Aerovias de Mexico, S. A. de C. V.). Revenue services commence to major domestic communities with a fleet that over the next year grows to include 2 leased Boeing 737-2L9As, 2 chartered B-737-264As, 1 leased B-727-77, and 3 chartered B-737-130s. A British Aerospace (BAC) 1-11-201AC is acquired as a backup, but is never flown.
The fleet is altered in 1993; although the B-737-2L9As and B-737-130s are retained, the other planes flown earlier are replaced by 2 leased B-727-2Q4As and 1 Douglas DC-9-31. Charter services are briefly operated to Las Vegas.
When DOT officials discover in September that the airline has failed to receive the appropriate route authority, the carrier’s rights to fly into the U. S. are revoked and it is fined $43,000.
Unable to achieve its dream of becoming a full-service scheduled airline, SARO continues charter flights in 1994. The chartered B-737-2L9As are returned to their lessor.
Enplanements total 330,119.
Flights continue in 1995-2000. During these years, the DC-9-31 is returned and the all-chartered fleet comprises 3 B-737-130s and 1 B-737-217.
SAS (SCANDINAVIAN AIRLINES SYSTEM): Frosundaviks Alle 1, Stockholm, S-16187, Sweden; Phone 46 (8) 797-0000; Fax 46 (8) 797-1515; Http://www. sas. se; Code SK; Year Founded 1946. In 1938, representatives from the governments of Sweden, Norway, and Denmark and their national airlines—Aktibolaget Aerotransport/ABA Swedish Airlines, A. B., Det Norske Luftfartselskap/DNL Norwegian Air Lines, A. S., and Det Danske Luftfartselskab/DDL Danish Air Lines, A. S.—agree to pursue the idea of a joint Bergen-New York flying boat service in cooperation with Pan American Airways (PAA).
The German invasion of Norway and Denmark in the spring of 1940 and the Swedish government’s refusal to grant ABA Swedish Airlines, A. B. a subsidy to support any deal with Pan American Airways (PAA), conspires to force delay in proposals for cooperative operations.
In neutral Sweden on June 9, 1943, Marcus Wallenburg founds Svensk Interkontinental Luftrafik, A. B. (SILA), which becomes his nation’s international carrier. ABA Swedish Air Lines, A. B. assumes responsibility for regional and domestic services. Representing the as-yet unformed SAS, Per Norlin, with SILA backing, orders 7, later 10 Douglas DC-4s on November 27.
Norlin and his associates negotiate a North Atlantic concession under the 1944 U. S.-Swedish bilateral air treaty. Nine interned Boeing B-17 bombers are taken in hand and converted to civil status by SAAB; it is tacitly agreed that the planes will be given to and paid for equally by the three state airlines. Although occupied, the Danes promptly smuggle out funds to pay for their share.
On March 23, 1945, SILA formally receives the North Atlantic route authority negotiated the year before. In SILA livery, a converted Flying Fortress makes a token Stockholm-New York flight on June 27. Negotiations between the three national carriers for the actual establishment of a joint consortium begin anew.
An order for four Boeing 377 Stratocruisers is placed on February 28, 1946. In the colors of ABA Swedish Airlines, A. B., the first DC-4, christened Nordan, is delivered on May 1. On July 31, the Scandinavian Airlines System (SAS) is formally established. The consortium agreement is the first of its kind in commercial aviation history and a model for later collaborative efforts, such as Air Afrique, S. A. The agreement is formalized in a constitution signed by Prince Axel of Denmark, DDL’s Per Kampmann, DNL’s Thomas S. Falck Jr. and Thomas Olsen, ABA’s Carl Florman, and SILA’s Marcus Wallenburg. These six individuals become the carrier’s first board of directors; Per A. Norlin becomes first president/CEO.
Capital shareholding in the new organization is divided between the companies, with three-sevenths to SILA/ABA and two-sevenths each to DDL and DNL. The agreement establishes Overseas SAS for operation of international flights; however, to overcome international law concerns, the parent companies continue to fly their own separate domestic and European regional services.
Following delivery of the 10 DC-4s ordered in 1943, the first SAS transatlantic New York service (in the Douglas Nordan, wearing the national flags of Denmark, Norway, and Sweden) is inaugurated from Stockholm and Copenhagen on September 17 via Prestwick and Gander. An agreement is signed with the U. S.S. R., allowing Aeroflot Soviet Airlines to participate, at least indirectly, in the New York service.
On October 21, SILA sells delivery positions for two of its Stra-tocruisers to DDL (Danish Air Lines, A. S.) and DNL (Norwegian Air Lines, A. S.). The two have indicated a willingness to pool B-377 flights with SILA on a twice-weekly service from Stockholm to New York via Oslo, Copenhagen, and Prestwick. The three-nation flag carrier inaugurates New York to Helsinki flights via Stockholm on November 20, with the Russian carrier taking continuing passengers from Helsinki to Moscow. Charter operations to Montevideo begin November 30 and scheduled through service to Buenos Aires on December 29.
While seeking a lost DC-3 on May 16, 1947, a Swedish Consolidated PBY Catalina is attacked by Soviet fighter planes and forced down at sea, injuring two crewmen. The Swedish public is incensed and a crowd stones the Soviet embassy at Stockholm. Daily SAS New York service is launched on June 17. On July 6, three Swedish youths, held aboard a DC-4 as the first stowaways to cross the Atlantic aboard a commercial airliner, arrive at New York and are turned over to police. A DC-4 with 45 aboard crashes into Mount Hymettos, near Athens, on October 28; there are no survivors. Route agreements for Swedish regional services are reached between SILA and ABA Swedish Air Lines, A. B. in November. A DC-4 crashes near Ravello, Italy, on November 20 (20 dead) and in December orders are placed for 17 DC-6s.
On April 18, 1948, the regional operations of DDLDanish Air Lines,
A. S., DNL Norwegian Air Lines, A. S., and ABA Swedish Air Lines, A. B. are combined into an SAS European Division while ABA and SILA are fully amalgamated on July 1 under the former’s name. Although four DC-6 building slots are given over to British Commonwealth Pacific Air Lines, Ltd., the first of the new Douglas transports begin to join the fleet in April and May and are integrated onto the New York service.
One of the new DC-6s with 7 crew and 25 passengers is involved in the company’s first major accident. Near London’s Northolt Airport on July 5, an RAF Avro 685 York collides with one of the new Douglas transports (39 dead) in the worst air disaster in British civil aviation history to date. Both aircraft had been circling in a rainstorm, waiting to land.
South Atlantic DC-6 roundtrips commence on October 30.
En route from Madrid to Copenhagen on February 8, 1949, a British-built Viking crashes off the coast of Sweden (28 dead). With the four Scandinavian Stratocruisers due for delivery in October and December, SILA announces on April 11 that it has chosen to standardize its fleet on products from Douglas Aircraft. The delivery positions are sold to British Overseas Airways Corporation (BOAC). The first SAS Far Eastern route is opened on October 26, when DC-6 service to Bangkok is inaugurated.
The carrier initiates a “stop over” plan on June 17, 1950, allowing passengers to visit cities en route at no extra cost. The first of 10 SAAB 90A-2 Scandias begins service with the European Division in December.
Made retroactive to October 1, 1950, the overseas and European divisions of SAS are merged in a final consortium agreement signed on February 8, 1951. SAS becomes the flag carrier of Denmark, Norway, and Sweden with ABA, DDL, and DNL the nonflying national holding companies. Some ?8 million in capital is subscribed to the enterprise in the three-sevenths and two-sevenths proportions of the original 1946 pact; half of the funds are paid by the national governments and half by private investors. The whole agreement is given a renewable 25-year life span.
A DC-3 with 4 crew and 18 passengers crashes while landing at Bromma Airport, Stockholm, on April 1; although the aircraft is destroyed, there are no fatalities.
DC-6 service is launched to Tokyo via Bangkok on April 18 and to Nairobi on November 15. In December, the last of 10 ordered SAAB 90A-2 Scandias enter European service.
A consortium crew led by Capt. Jensen performs the first transpolar flight by a commercial airliner with the delivery on November 19, 1952 of a Douglas DC-6B from Los Angeles to Copenhagen via Edmonton, Canada and Thule, Greenland. This proving flight by the Arild Viking is made in 28 hrs. 7 min. (actual flying time is 23 hrs. 38 min.), cutting
1.000 miles off the regular route. A second DC-6B delivery and proving flight is made over the route on December 6.
DC-6B service to Johannesburg is started on January 7, 1953. Direct DC-6B is initiated from Goteborg, Sweden to New York City on May 18 and a DC-6B departs Oslo on May 23 on the first Europe-Tokyo preservice flight over the Great Circle Route. After the U. S.S. R. denies the airliner permission to fly across Siberia, the airliner arrives at Shemya, in the Aleutians, the next day. From the Aleutians, the DC-6B goes on to Tokyo on May 25, completing the 6,683-mile trip in 37 hrs. flying time,
3.000 miles less than that required for the conventional route. Tourist-class fares are introduced on the North Atlantic route on October 4.
A DC-6B completes a successful Scandinavia to Los Angeles test flight over the Great Circle Route on January 25, 1954. The company petitions the U. S. CAB on March 9 for permission to fly regularly scheduled services to San Francisco and Los Angeles. A Dehmel flight trainer is purchased 10 days later and on March 29, mechanics strike at Oslo and Stavenger.
A DC-6B flies from Prestwick, Scotland, to New York City in a record 11 hrs., 7 min. on May 1. Two weeks later, on May 14, the carrier begins to offer a credit plan that will enable travelers to finance their trip costs. A DC-6B completes a Norway to Japan flight on May 19 via the North Pole and Fairbanks, transporting Red Cross personnel bound for South Korea.
On August 18, the CAB grants SAS a Los Angeles route in exchange for Scandinavian permission for United Air Lines to operate the same route in reverse. The airline signs an agreement with Aeroflot Soviet Airlines on September 5 for the inauguration of Stockholm-Moscow service. A significant number of Swedish pilots resign on October 15 over alleged preference given to Danish pilots and during the month, the CAB grants the company layover permission for Blueie W 8 airfield at Sondre Stromjord in Greenland.
On November 15, the world’s first commercial service is pioneered over the polar shortcut between Europe and California. The DC-6B Royal Viking departs Los Angeles, lands at Winnipeg and Bluie W 8 for refueling, and reaches Copenhagen on November 16, completing the inaugural flight in 23 hrs. 58 min. The second phase of the Great Circle Route service is initiated by the DC-6B Helge Viking from Copenhagen on November 16, which brings the premiers of the three Scandinavian countries and other VIPs to Los Angeles 35 minutes ahead of schedule, via Sondre Stromjord. En route, the two Douglas transports pass one another.
Convair CV-440s and Douglas DC-7Cs are ordered in 1955. On May 13, a DC-6B flies from Stockholm to Tokyo via the North Pole in a preservice record 33 hrs. 20 min. Henning Thorne Holst succeeds Per A. Norlin as president during the fourth quarter.
The first of 16 Convair CV-440s is delivered for service on the European routes in 1956; as DC-7Cs are acquired, DC-6Bs are transferred to the regional frequencies.
Scheduled service from Oslo to Moscow begins on May 1; three days later, direct Buenos Aires to Moscow flights begin. The premier DC-7C is delivered on August 16 and is christened Brage Viking; it is followed by the Guttorm Viking on September 25.
On February 24, 1957, the North Pole route between Copenhagen and Tokyo is inaugurated via Anchorage as the carrier’s two DC-7Cs fly simultaneously from both destinations. Japanese Prince Takahito and other VIPs are on the Copenhagen-bound airliner while Danish Premier Hans C. Hansen and Prince Axel are on the Tokyo-bound plane. As the latter transport flies over the top of the world, Premier Hansen broadcasts a message promising goodwill and cooperation between nations on a shrinking globe.
A half-share in the newly organized Swedish domestic carrier Linje-flyg, a. b. is subscribed on April 2. On April 5, service is inaugurated from Stockholm to Warsaw and on to Prague. On June 28, SAS becomes the first non-French airline to order a Sud Est Caravelle jetliner.
As of October 10, service is initiated to Cairo via Budapest. Nonstop Lisbon to Brazil flights are initiated on October 20.
A DC-6B with five crew is lost in a training accident at Norrkiping, Sweden on November 28; there are no fatalities.
Late in the year, all eight of the carrier’s SAAB 90A-2 Scandias are sold to the Brazilian airline VASP (Viacao Aerea Sao Paulo, S. A.) and replaced by Convair CV-440s. Orders are placed for a medium-ranged French jetliner, the Sud SE-210 Caravelle.
Passenger enplanements for the year total 1,396,000.
Following a dispute with lATA over the quality of its food service (the so-called “sandwich war”), SAS, in February 1958, is authorized to offer passengers its smorgasbord, thus beginning a worldwide catering reputation for superior in-flight meals. An alliance is entered into with Swissair, A. G. on October 8.
The consortium agreement is renewed, with slight modifications, on December 16. During the fourth quarter, Ake Rusck succeeds Henning Throne Holst as president.
On February 20, 1959, half-interest in the Mexican airline Aerovias Guest, S. A. de C. V. is purchased. On April 26, the consortium airline becomes the first non-French carrier to place the Sud SE-210 Caravelle I into regularly scheduled service, flying it on a multistop Copen-hagen-Cairo route. Leased from its manufacturer, the aircraft is employed is the first prototype. Also in April, Montreal to Copenhagen service is launched. In a fifty-fifty arrangement, Thai Airways, Ltd. and SAS form Thai Airways International, Ltd. (THAI) at Bangkok on August 24.
In December, a fleet of six DC-6s is sold to Aeronaves de Mexico, S. A. de C. V. As part of the package, SAS agrees to provide Mexican pilots with a three-week transitional training course.
Following a service from Stockholm, Flight 871, an SE-210 Caravelle I with 7 crew and 35 passengers, crashes short of the runway near Ankara on January 19, 1960; there are no survivors.
The first DC-8-32 is received on March 31, and is christened Dan Viking. DC-8-32s are introduced on intercontinental service from Copenhagen to New York’s Idlewild Airport on May 1, Los Angeles on June 3, and Tokyo on October 11.
On May 7, the new Sud SE-210 Caravelle Einor Viking is placed on the Stockholm-London via Copenhagen route. With Princess Astrid of Norway, Princess Margaretha of Sweden, and Princess Margarethe of Denmark aboard, the company makes a Copenhagen to Los Angeles DC-8-32 inaugural flight on June 4 via the Great Circle Route.
A new DC-8-32 narrowly averts disaster during a night takeoff from Copenhagen during August when it flies into a large flock of seagulls. Although three engines and the leading edge of the wing are damaged, the Douglas is able to make an emergency landing back at its point of origin and no injuries are reported. Two days later, the aircraft is back in service.
During the fall, the multinational flag line provides 25% of the startup capital for newly formed Gronlandefly, A. S./Greenlandair.
Regularly scheduled nonstop trans-polar DC-8-32 service is initiated on October 11 between Copenhagen and Seattle. As part of a maintenance pool with Swissair, A. G., the company, late in the year, is able to modify the wing leading edges of its DC-8-32s to accommodate an additional 950 gallons of fuel.
Passenger boardings for the year total 1,880,000.
Following financial reversals in 1960, the 50% share of Aerovias Guest, S. A. de C. V. is divested in 1961. In February, the DC-6B Hjal-mar Viking is sold to REAL Brazil, S. A. and Oslo to New York jetliner flights begin on April 20.
On August 20, the carrier announces new cost-cutting measures, including the layoff of 1,250 ground personnel. Meanwhile, the subsidiary Scanair, A. B. is formed to provide charter and inclusive-tour service to points in southern Europe, North America, Africa, and the Canary Islands.
The subsidiary SAS Catering, A. B. is set up on October 1. During the fourth quarter, Curt Nicolin succeeds Ake Rusck as president.
A total of 1.97 million passengers are carried during these 12 months.
A Convair CV-990 Coranado is leased from its manufacturer on February 23, 1962 for sublease to Thai Airways International, Ltd. (THAI). Originally christened Adils Viking, the new ship initially enters service between Copenhagen and Tokyo via intermediate points. All 14 Caravelles are grounded on March 17 for landing gear modifications; the consortium agreement is further amended on March 26. A second CV-990, Ring Viking, is acquired on April 10 and is also sent out to Bangkok.
The Ring Viking is rechristened Srisuriyothai and enters service on behalf of the SAS partner on May 18.
For its work in pioneering North Pole routes, the carrier, on October 12, receives the Christopher Columbus Prize, which is sometimes known as “The Nobel Prize of Communications.”
A DC-8-32 flies from New York to Oslo on October 26 in a record 5 hrs. 55 min. Karl Nilsson succeeds Curt Nicolin as president during the fourth quarter.
As passenger traffic accelerates through the year to 2,157,193), additional capacity is required.
The two Convair CV-990A Coranodos are returned from their Asian sublease in 1963 and are assigned to service on the company’s South Atlantic routes; the Srisuriyothai, incidentally, takes back its original name.
On May 4, a “Top of the World” domestic route is opened with a new northern Norway service from Tromso to the Kirkenes via Alta and Lak-selv. On October 20, Econofare New York to Copenhagen propeller service is begun.
Bookings this year accelerate to 2,376,982.
DC-8-32 flights from Copenhagen to Chicago begin on April 2, 1964.
Airline employment reaches 12,126 during the year, enplanements are up to 2,676,000, and revenues total $195.15 million.
On February 1, 1965, the first European electronic reservations and ticketing system, SASCO, is introduced by the airline.
A DC-7C with 7 crew and 84 passengers crashes upon takeoff from Tenerife on February 8; although the aircraft must be written off, there are no fatalities.
Bergen is added to the route network on April 5 while Governors Rolvaag and Reynolds and Mayor Daley are among 65 VIPs feted at Copenhagen following the inauguration of direct SAS service from Chicago. An order is placed for eight DC-8-62s and new computer reservations procedures are introduced at the Copenhagen base, where a new air cargo terminal is also under construction.
Passenger boardings rise 14.6% to 3,090,642.
Withdrawn during January, the CV-990As Adils Viking and Ring Viking are passed to Swissair, A. G. on February 1, 1966. As the result of Norway’s discontent with SAS, that nation’s new conservative government ends the conglomerate’s privileged status over private companies by awarding domestic routes to Braathens SAFE, A. S. on May 15.
The Norwegian, Danish, and Swedish pilots associations initiate a unified job action on June 6 and the governments of the respective countries agree to try to settle the strike by voluntary arbitration. The pilots accept an arbitrated settlement, ending their walkout on June 22.
Seattle becomes a new polar route destination on September 2 and on December 19, the carrier becomes launch customer by placing the first orders for the DC-9-21 and DC-9-41 for medium - and short-haul frequencies.
Enplanements this year total 3,283,550.
The airline receives Soviet permission on January 27, 1967 to fly over Siberia on flights to Japan in return for the receipt, by Aeroflot, of permission to fly over Scandinavia. In March, the British Eagle International Airways, Ltd. BAC 1-11-301 Stalwart is leased for the summer charter season; given the name Arnold Viking, it retains its British registration and markings.
Copenhagen to Leningrad reciprocal service begins on April 4. On May 22, SAS becomes the first airline to introduce the DC-8-62 on long-haul routes.
Meanwhile, permission from Moscow is received on August 8 for operations over the U. S.S. R. on a Copenhagen-Bangkok service. This new Trans-Asian Express DC-8-62 route between Copenhagen, Bangkok, and Singapore via a Tashkent service stop is inaugurated on November 4. The new air cargo terminal is occupied at year’s end.
Passenger boardings jump 15% to 3,863,000 and freight traffic climbs 23%.
Airline employment in 1968 totals 13,081. Deliveries of the first of 49 specially ordered DC-9-41s begins in February with the first of the Douglas twin-jets entering service in late March. Dar Es Salaam is added to the African network on March 31 and two DC-8-63s are delivered in July.
On August 17, the carrier announces, that it has accepted a 30-year-old Norwegian woman, Turi Wilderoe, as a pilot trainee, becoming the first major Western line to accept a female for such a post. On September 18, the DC-9-21 specifically designed for SAS begins test operations. The carrier subscribes 22% of the capital required to refinance Wideroes Flyvelskap A. S. The first of 10 DC-9-21s is delivered on December 11 and is placed on domestic routes at the end of the year.
Scheduled booking increase 12.8% to 4,155,000 and revenues are now $286.37 million.
The employee population stands at 14,466 in 1969. The fleet now includes 16 DC-8-62s, 30 DC-9s, 15 SE-210s, and 10 CV-440s, including the first of 10 specially ordered DC-9-21s. Orders are placed for Boeing 747 Jumbojets.
On final approach to Los Angeles on January 13 on a flight from Seattle and Tacoma, the inattentive flight crew of a DC-8-62 with 9 crew and 36 passengers allows their aircraft to land in Santa Monica Bay during an ILS approach (15 dead).
Also on January 13, the KSSU Group for technical and operational cooperation is founded in association with Swissair, A. G. and KLM (Royal
Dutch Airlines, N. V.); a multi-airline pact is signed for a 10-year period. Under its terms, SAS will specialize in engine overhaul and cockpit standardization.
The first DC-9-21 revenue service is offered on January 27.
A new domestic terminal is opened at Copenhagen’s Kastrup Airport and the company becomes the first in Europe to install the Telemax computerized reservations system. The last of the 10 DC-9-21s arrives on April 12 and is christened Rane Viking.
On May 2, Turi Wideroe becomes the first woman pilot hired by SAS and the first woman to pilot a passenger craft for a major Western airline. Later in the year, Knut Hagrup succeeds Karl Nilsson as president.
The total number of travelers for the year is 5,007,420; the profit is $16.1 million.
In 1970, airline employment rises to 14,560. UTA French Airlines joins the multi-airline KSSU Group pact in February.
The No. 1 engine of a DC-8-62 with 11 crew and 54 passengers suffers an uncontained failure and fire during the plane’s April 19 takeoff roll from Rome; the liftoff is aborted and all aboard are evacuated. No injuries are reported.
A Fokker F.27 goes down near Vagar, in the Faeroes, on September 26 (eight dead).
Freight traffic for the year remains level, passenger boardings increase 10% to 5.05 million, and a record profits of $17.2 million is recorded—the 8th profit in a row. In terms of passenger boardings, SAS now ranks as the world’s 21st largest airline; it is 17th in air freight and 15th in number of employees. With 71 jetliners, it possesses the 17th largest fleet.
The first Boeing 747-283B Bjarne Viking is delivered on February 22, 1971 and placed in service on the Copenhagen to New York route on April 1. In February, SAS joins with Maersk Air A. S. and Cimber Air, A. S. to create Danair, A. S. for Danish domestic services. Trans-Siberian Express service is launched on April 3 over a route from Copenhagen to Tokyo via Moscow.
Quick-witted security personnel prevent the hijacking by a lone assailant of a DC-9-41 preparing for a scheduled domestic service from Malmo to Stockholm on May 17.
Vingresor/Club 33, a major tour-producing company, is acquired on June 2.
A new seven-year pact is signed with Thai Airways, Ltd. for the operation of Thai Airways International, Ltd. (THAI). Company-owned hotels open in Norway, Denmark, and Sweden. Beginning in September and continuing for 10 months, the carrier offers $208 roundtrip excursion fare service between New York and the Scandinavian capitals; the fare is the lowest jet tariff offered on the route by a scheduled airline.
The first DC-8-32, Dan Viking, is withdrawn at the beginning of October and the second B-747-283B Ivar Viking arrives on November 12.
Enplanements for the year dip to 4,580,520.
In 1972, airline employment is up only three people over 1970. East Berlin, Abidjan, Zagreb, Belgrade, and Geneva are added to the route system and orders are placed for DC-10-30s. On May 12, the company takes delivery of a DC-8-63, the last DC-8 manufactured.
Three gunmen, advocating Croatian independence, hijack a DC-9-41 with 79 aboard en route from Goteborg to Stockholm on September 15. They force it to land at Malmo, where they demand the release of six Croats imprisoned for their role in the murder of the Yugoslav ambassador to Sweden, V. Rolovic, the previous year.
After obtaining the prisoners, $200,000 in ransom, and fuel, the passengers are released and the plane is ordered to fly to Madrid, where the pirates surrender to Spanish authorities the next day. The three ringleaders will be tried and given 12-year terms in Spanish prisons.
Freight traffic this year soars by 16.7% and boardings are up to 5,798,000.
Unable to stop after aborting its takeoff from Oslo’s Fornebu Airport on January 30, 1973, the DC-9-21 Reidar Viking with 4crew and 29 passengers crashes through a fence onto ice-covered water. Although the landing gear breaks through the surface, the wings support the plane long enough for all aboard to escape. The short-bodied Douglas subsequently sinks and although retrieved, must be written off.
Also in January, the multinational airline places the largest single equipment order in its history to date: $105 million for 17 more DC-9-41s. New all-cargo routes are opened to Chicago, Bangkok, and Singapore. An agreement is reached with the People’s Republic of China permitting SAS to service Peking at a future date and a new hotel is opened at Copenhagen.
Airliners are designated “department stores” as of July 8 when the carrier begins placing 24-page sales catalogs in the reading material provided in seat pockets. The public relations department maintains that the catalogs will service as in-flight shops for travelers, enabling them to purchase quality products in Scandinavian countries at a 20% discount. Beginning on the night of December 13, the carrier introduces stewardesses in its jetliner cabins costumed as Lucia, Swedish queen of light, as part of the ancient Swedish celebration of what was once considered the year’s longest night.
Enplanements for the year are 6,224,130, including the 50 millionth passenger. Cargo traffic is up by 5% and the workforce now totals 14,909. At year’s end, the last surviving founder, Dr. Marcus Wallenburg of Sweden, retires from the board of directors.
An SE-210 Caravelle III is damaged beyond repair at Stockholm’s Arlanda Airport on January 25, 1974.
The 17 DC-9-41s are received throughout the remainder of the year as the last of 12 Caravelles are retired, including the final unit withdrawn on September 25. The first two DC-10-30s are delivered on October 6 and are put on the Scandinavia-Seattle and Los Angeles polar route on November 5. New Delhi becomes a passenger destination.
Passenger boardings rise 1% to 6,287,000 and cargo traffic is up by 13%.
Airline employment in 1975 stands at 14,863 and the SAS consortium agreement first initialed in 1951 is extended to 1995. DC-8-62/63s replace DC-9-21s on all Mideast routes and, on September 2, DC-9-41 flights are started Oslo-Haugesund and Tromso-Longyearbyen, the latter city becoming the most northerly point on the world’s commercial air map.
Orders are placed for the 53rd and 54th DC-9-41s, allowing the carrier to continue its ranking as the largest employer of the Douglas twin-jet outside of the U. S. A new hotel, the Scandinavian, is opened at Oslo while another, the Lofoten, is occupied at Stansund. Citing consumer preference, the carrier discontinues the traditional chicken dinner on its transatlantic flights as of December 28.
Passenger boardings are up 6% to 6,668,000, freight traffic falls 2%, and the 13th consecutive profit is recorded.
As the result of the Swedish government’s reorganization of its domestic services, two of the SAS daily roundtrips between Stockholm and Lulea are transferred to Linjeflyg, A. B. on January 1, 1976. Initial B-747-283B service is now inaugurated from New York to Copenhagen; Jumbojets also link Stockholm with New York. As three more DC-10-30s come on line, Douglas wide-body operations are launched to Bangkok, Singapore, Montreal, Chicago, Nairobi, Dar Es Salaam, and Johannesburg.
On October 30, the fleet becomes all-jet as the last two CV-440s are retired. A 13 th flight kitchen is opened in London, while the 11th Scandinavian hotel is occupied.
Passenger boardings climb 7% to 7,161,000, freight traffic jumps 15%, and a $9.8 million net profit is posted.
Service is extended to Kuwait and Barcelona in 1977. A strike by cabin attendants on May 10 forces some flights to be cancelled.
A Goteborg-New York route is opened on November 2. Meanwhile, the B-747-283C delivered on October 27 is christened Magnus Viking and is placed on the North Atlantic run on December 14.
Enplanements for the year total 7,381,410.
Carl-Olov Munkburg succeeds Knut Hagrup as president on January 1, 1978. Mini-fares are introduced on the North Atlantic on October 1. Meanwhile, B-747-283B operations to Jeddah commence on September 18 and nonstop Oslo-New York flights start on November 4. An order is placed with Airbus Industrie for two A300B4-120s.
Passenger boardings rise 7% to 7,937,000 and freight traffic climbs 10%. The 16th consecutive net profit, $21.3 million, is banked.
A second B-747-283C, the Knut Viking, is received on March 2, 1979 and is placed in service to Seattle and Los Angeles on November 15, the 25th anniversary of the polar route’s beginning. Also in March, additional hotel concerns are acquired, the Park Avenue Hotel in Goteborg and A/S hord Norsk Hotelldrift.
Aarhus-London flights begin in April and business class is introduced on the North Atlantic on November 1. Also in November, DC-10-30s replace DC-8-62/63s on all South American routes.
Early in the year, the carrier boards its 100th million passenger. En-planements for the year rise 9.9% to 8,669,000. Although freight traffic falls 3.2%, yet another net profit ($35.6 million) is taken in.
A. B. Olson and Wright, a major Swedish forwarding agency, becomes a wholly owned subsidiary on January 1, 1980. Airline employment is cut by 0.9% during the year to 16,887. The first three A300B4-120s are received early in the year and two more are ordered. In addition, the fleet now comprises 4 B-747-283Bs and Cs, 5 DC-10-30s, 7 DC-8-62/63s, and 61 DC-9-21/41s. The A300B4-120s are placed in service over European regional routes to London, Stockholm, Paris, and Madrid.
On September 20, one of the new aircraft and a British Airways, Ltd. (2) jetliner brush each other on a London (LHR) airport runway; no injuries are reported.
Business-class service is extended to Asian and polar routes on October 1. It is announced in November that Jan Carizon, 39-year-old former head of Linjeflyg, A. B., will become CEO in the new year.
Passenger boardings dip 3% to 8,393,000 and freight is down 3.1% to 412 million FTKs. The deepening world recession causes the carrier to suffer its first financial loss in 18 years. Despite a 15% gain in income to $2.24 billion, expenses are up 17.2% to $2.23. An operating profit of $456,000 is earned, but a net loss of $14.9 million must be record in the books.
Jan Carizon becomes president/CEO on January 1, 1981. A total of $25 million is spent to totally restructure the airline from a production-oriented to a market-oriented company. Six new operating divisions — commercial, traffic, administrative, operations, technical, and associated companies—are set up as profit centers. The B-747-283C Dan Viking (the 500th Jumbojet built by Boeing) is received on February 18 and a fourth A300B4-120 joins the fleet in March.
A new route is opened linking the North Sea oil centers of Stavanger and Aberdeen and during the summer a punctuality campaign is launched aimed at producing the best on-time performance in Europe. The Huge Viking, a B-747-283C, is acquired on October 22 and an upgraded economy-class, EuroClass, is unveiled over European routes on November 1.
Passenger boardings remain level at 8,413,000, freight traffic declines 1.1%, and a second consecutive net loss ($18.5 million) is recorded.
The transition from a production-oriented to a market-oriented airline is completed in 1982. The Ivar Viking is sold out of service in January, but will be leased back the following month. Following a move to Copenhagen Airport, Improved Business Class is introduced to intercontinental services on February 1 and new Intra-Nordic low fares are initiated on June 1. An unnamed B-747-143, once flown by Alitalia, S. p.A., is leased from Boeing for six months on July 26.
First-class business service begins on intercontinental routes on September 26, the same day a nonstop B-747-283C Copenhagen-Bangkok route is opened. The new low fares are extended from the Nordic market to all European services on November 15. As a result of the campaign begun in 1981, the carrier becomes the most punctual in Europe according to AEA statistics. This achievement will be maintained through 1993.
The number of workers is increased a gradual 1.9% during the year to 16,553. Enplanements rise 5% to 8.9 million, but freight traffic is down 4% to 403.12 million FTKs. The year’s best news comes on November 26 when a net profit of $53.5 million is reported—the largest turnaround from net loss to net profit in SAS history—on operating revenues of $1.59 billion.
The number of employees is increased by 2.3% in 1983 to 16,937 and DC-10-30 flights are introduced on the Trans-Siberian Express on April 1. During the first quarter, Chairman Carlzon and Air France head Pierre Giraudet clash over the latter’s efforts to place a surtax on Euroclass flights to Paris; the foreign ministers of Sweden and France agree that no such tax will be levied.
On April 12, a completely new corporate image, designed by Landor Associates, is unveiled; aircraft exteriors and interiors, uniforms, ground vehicles, and ticket offices are all to be redone by the time the fall schedule begins on September 25. The uniforms alone will require an investment in 252,000 m. of wool and cotton cloth, 298,000 buttons, and 16 km. of gold braid.
Nonstop Stockholm-New York service begins on May 28. Also during the second quarter, the four A300B4-120s are grounded as being too large to generate profits on the European network. Three will soon be leased to Scanair, A. B.
The Fokkers the French carrier TAT (French Regional Airlines, S. A.) is currently operating are not quite large enough to satisfy its requirements, but are excellent short field aircraft suitable to the majority of airports visited. A search for an F.28 replacement continues. In late summer, arrangements are made to lease for a year’s trial a pair of Douglas DC-9-21s from SAS, which owns 14 of the type and is interested in selling them.
The two Douglas transports, Ubbe Viking and Orvar Viking, are delivered to Paris (ORY) in September and October via Denmark, then the only Scandinavian EEC country (thus making the planes non-import taxable). Revenue flights are undertaken from Paris (ORY) to Cham-bery, Beziers, and Carcassone.
An alliance is inked with Qantas Airways (Pty), Ltd. late in the year that provides for joint fares and promotions around the world and connections in southeast Asia for onward travel to points in Australia. The Jumbojet Bjarne Viking is sold out of service on October 1, but is leased back 10 days later. During the year, the B-747-283C Knut Viking is leased to Nigerian Airways, Ltd. for a year.
Boardings move upward 6% to 9,343,000, but freight traffic dips again by 4% to 386.76 million FTKs. Revenues are $1.4 billion. The operating profit, however, more than doubles, up to $58.9 million, while net gain climbs 35% to $76.8 million.
The payroll is expanded a hefty 9.6% in 1984 to 17,100 and orders are placed for 3 more DC-10-30s and 6 DC-9-80s. In January, SAS receives the 1983 “Airline of the Year” award from Air Transport World magazine.
Continued concentration is placed on the full-fare Business Class market. Flight 901, a DC-10-30 with 177 aboard, skids off the end of a rain-slicked runway while landing at New York (JFK) on February 28; coming to a halt with its nose in a marsh channel off Jamaica Bay. All of the passengers and crew are evacuated, with 12 injured, one seriously.
Although TAT (French Regional Airlines, S. A.) wishes to proceed with the sale, SAS, upon reconsideration, elects to retrieve the DC-9-21s for additional service and reclaims them when their lease expires.
The wholly owned commuter subsidiary EuroLink is formed in December and eight Fokker F.27s are ordered for it.
Passenger boardings incline upward by 9% to 10.3 million and freight traffic finally rises, climbing 4% to 402.5 million FTKs. An operating profit of $83.4 million is recorded on revenues of $1.6 billion.
Employment grows 3.6% in 1985 to 17,710. EuroLink services are launched connecting Copenhagen, Hamburg, Oslo, Kristiansand, Gote-borg, Haugensund, Vasjo, and Jonkoping. Four newly received Friendships are assigned to the commuter operation while three additional DC-10-30s are delivered to the main fleet. Norway, Sweden, and Denmark agree on June 27 to end all company flights to Johannesburg to protest South Africa’s apartheid policies.
During the fourth quarter the European cargo hub is moved from Copenhagen to Cologne as the cargo computer system CAROLINE is introduced.
Passenger traffic rises 6% this year to 10.9 million, but cargo remains level. A fourth consecutive operating profit ($102 million) is posted on revenues of $1.9 billion; the net gain is $100 million. SAS now ranks 24th among all world airlines in terms of passengers carried and 21st in fleet size.
The payroll grows again in 1986, up 4.9% to 19,773. In January, three A300B4-120s are sold to Conair of Scandinavia, A. S. The same month, the first direct Asia-Stockholm service is opened to Stockholm from Bangkok and Singapore. Orders are placed in March for four more DC-9-80s and in June for four additional F.27s. Lars Bergvall is, meanwhile, appointed airline executive vice president/chief operating officer on April 1 and Jan Carizon becomes consortium chairman.
SAS Cargo moves its overnight freight hub in May from Copenhagen to Cologne and in August orders are placed for 10 McDonnell Douglas MD-87s and 4 MD-82s. At year’s end, options are taken on 12 MD-11s and the Diners Club International operation in Scandinavia is purchased.
Customer bookings accelerate 9.4% to 11,700,000 and freight is up 3.3% to 409 million FTKs. Revenues swell to $2.39 billion and with costs low, the operating profit jumps to $299 million and net profit rises to $205 million.
Airline employment is increased in 1987 to 20,479. In January, the company receives the 1986 “Passenger Service Award” from Air Transport World magazine. The Copenhagen Airport Shopping Centre is opened on April 29.
The DC-9-41 Gissur Viking, with 4 crew and 103 passengers is destroyed as the result of a bad landing at Trondheim on February 25; there are no fatalities.
During the year, most of the B-747-283Cs and DC-8-62s/63s are retired; the final Jumbojet transatlantic passenger flight occurs in August. On August 8, SAS Leisure forms Spanair, S. A. with Spanish partners.
The carrier’s 22-unit hotel chain is expanded into additional cities and the first nonstop service is inaugurated on September 1 from Copenhagen to Tokyo. An arrangement is made with Thai Airways International, Ltd. (THAI) on October 3 for connections from Bangkok to other cities in Southeast Asia.
Chairman Carizon’s thoughts and recollections, Moments of Truth (Boston: Ballinger) are published during the year.
Passenger boardings swell 7.7% to 12,662,000; however, cargo is down 8.1% to 376.77 million FTKs, largely as a result of the European freight rate war. Revenues ascend 18.4% to $3.45 billion and costs are kept down, producing a $230 million operating profit and net gain of $191 million.
Although airline employment is cut 5.3% in 1988 to 19,834, the year is otherwise very busy and productive for the Scandinavian aerial consortium. The fleet now includes 106 aircraft: 48 DC-9-41s, 11 DC-10-30s, 10 MD-81s, 10 MD-82s, 9 DC-9-21s, 9 F.27s, 4 MD-87s, 3 DC-9-41s, and 2 MD-83s. Ninety-eight additional MD-80s, B-767-283ERs/ 383ERs, and Fokker 50s are requested in January, March, and June orders worth $3 billion.
An April start-up of flights into China is missed because of problems in finalizing arrangements for overflights over the U. S.S. R.
A $ 100-million Eurobond is launched in late spring and a $350-million revolving line of credit is established with several large international banks, including J. P. Morgan Securities. In June, the consortium agrees with Volvo to form a jointly owned company to combine engine overhaul activities.
On August 22, the carrier finally inaugurates weekly service between Copenhagen and Beijing. In other activities during the year, the three-nation partnership airline initiates flights to Malaga, Cairo, Warsaw, and Reykjavik. With the purchase of three new hostelries, its hotel total reaches 22. The subsidiary SAS Service Partner acquires two German companies to become Europe’s largest flight-kitchen service.
In pursuit of deeper involvement in an industry facing rapid deregulation and privatization, SAS reaches out to take shares in other carriers. As a complement to its arrangement with VARIG Brazilian Airlines (Viacao Aerea Rio-Grandeuse, S. A.), an equity stake is discussed with
Aerolineas Argentinas, S. A., but is put off due to political considerations.
On October 4, 9.9% shareholding is taken in Texas Air Corporation (TAC) and a marketing alliance is signed with its flagship company Continental Airlines. The consortium’s New York operations are moved from New York (JFK) to the new Continental hub at Newark (EWR), where it might connect with its new partner’s flights.
SAS EuroClass (club) passengers now receive first-class accommodations on the Continental Airlines portion of U. S. domestic flights. In December, a cooperative agreement is signed with All-Nippon Airways Company, Ltd. (ANA) of Japan. A new hub is opened at London (LHR) and on December 15 a 24.9% interest is acquired for $46 million in the Airlines of Britain, Ltd. holding company, parent of London City Airways, Ltd., Loganair, Ltd., Manx Airways, Ltd. (2), and British Midland Airways, Ltd.
Customer bookings rise 5.4% on the year to 13,341,200 and freight climbs 4.2% to 398.67 million FTKs. Revenues ascend 14.5% to $3.03 billion, expenses rise 9.9% to $2.66 billion, and operating income reaches $387 million. Net gain doubles to $383 million.
Company employment climbs 3.4% in 1989 to 20,471. In January, the company enters into a joint venture leasing business, Aircraft Lease Finance, planning to acquire a $40-million, 20% share; however, when CIS, the U. S.-based company chosen to manage the enterprise, fails the following month, the airline suspends its participation in the endeavor. Also during these months, plans are made with All Nippon Airways Company, Ltd. (ANA) for the operation of two new jointly operated roundtrip polar services from Tokyo to Stockholm.
In March, CEO Jan Carizon is elected to the board of Texas Air Corporation (TAC) as B-767-283ERs/383ERs from the massive airliner order of the previous year begin to arrive. Dubbed “Adams,” three self-ticketing machines come on line in April, one each at the airports in Copenhagen, Fomebu, and Arlanda. During the month, $500 million is paid out to the Japanese Saison Overseas Holdings Group for 40% ownership of the Inter-Continental hotel chain formerly owned by Pan American World Airways (1).
Also in April, the airline acquires Scot Catering, Offshore Services (Aberdeen), Ltd., and Sodexho Scotland, Ltd. It also joins with Diners Club International to offer the first international co-branded airline charge card, the SAS EuroClass Card.
Operations at the new Newark (EWR) hub, including cooperation with Continental Airlines, begins on May 1. SAS is the first major European carrier to move all of its operations to Newark from New York (JFK). Also in May, daily nonstop service is introduced between Stockholm and Rome; however, flights to Buenos Aires, Montevideo, and Santiago de Chile end.
In June, the subsidiary SAS Trading purchases the mail order firm Os-termann Petersen, Inc., which specializes in duty-free sales to diplomats around the world. Simultaneously, SAS Service Partner joins with British Island Airways, Ltd. (2) to create a joint venture, In-flight Services International, Ltd., a 6,000-sq.-ft. flight kitchen located at London (LGW). Service is inaugurated to Birmingham, England, and Leningrad from Newark, plus 12 other markets.
New stations are opened at Birmingham, Newark, and Toronto. Daily Oslo to Newark flights begin in August. Equity-sharing agreements are initialed with Finnair O/Y and Swissair, A. G. and marketing arrangements are made with Canadian International Airlines, Ltd. Also, majority 70% shareholding is taken in UCAK Service, A. S., a Turkish catering and restaurant concern that operates at 6 Turkish airports.
In September, as the result of a recommendation by the Nordic Council of Ministers, the airline, in cooperation with a Finnair O/Y, begins a total ban on smoking on all of its flights to and within Scandinavia. A strategic alliance is entered into with Swissair, A. G. on September 28; this is the first phase of the European Quality Alliance.
In October, a joint pool agreement is made with Martinair Holland, N. V. for maintenance, flight, technical training, and assistance for their B-767-31AERs. At the same time, the company suffers a $6.4-million loss when British Airways, Ltd. (2) cancels its ground handling agreement with the carrier at Copenhagen and Stockholm airports.
A comprehensive marketing agreement is signed with Finnair O/Y in November designed to develop a “competitive global travel service to, from, within and via the Nordic countries.”
A Danish court later in the month orders the major to pay the $775 air taxi bill of a passenger who, having been bumped from an SAS domestic flight and refused the standard $45 compensation, had completed his flight by charter and then billed SAS for it. Twice-weekly nonstop roundtrips begin on November 28 between Stockholm and Tallinn and are the first Western international air services to the Estonian city.
Other diversified activities of this 12-month period include the acquisition of Glele & Sohne, GmbH. at Hamburg, the Danish mail order catalog firm Petrsen Bros., Ltd., and the establishment of SAS Holdings,
B. V. and SAS Leisure, A. B. Shareholding in Spanair, S. A. grows from 25% to 49%. By December 31, the company, with 61 planes in service, is the largest non-U. S. operator of the MD-81/82/83/87 series.
Passenger boardings swell 4.9% to 13,997,300 and freight climbs 6.8% to 425.06 million FTKs. Revenues move ahead by 3.8% to $3.19 billion, expenses are up 5.6% to $2.83 billion, and operating income slips to $353 million. Net profit falls to $196 million.
The payroll grows another 5% in 1990 to 22,179 and now represents the 20th largest airline workforce in the world. The fleet of 128 aircraft is 16th largest.
On January 8, 30% shareholding is acquired in LanChile, S. A.; this figure will later rise to 35% and give the Scandinavians three seats on LanChile, S. A.’s board of directors.
As a result of the marketing agreement signed with Finnair O/Y, 16 hourly shuttle flights daily begin in the first quarter between Stockholm and Helsinki; at the Finnish capital, the flights connect with Finnair’s services to Moscow and Leningrad. European Quality Alliance traffic cooperation with Swissair, A. G. begins on March 25.
Later, in April, a maintenance agreement is signed with LOT Polish Airlines, S. A. and provides for technical support of that carrier’s three new B-767-35DERs.
A joint traffic system with Swissair, A. G. is introduced in April. Flights begin to Riga, Visby, and Tampere from Copenhagen on April 21.
Under terms of the marketing agreement signed with Canadian Airlines International, Ltd. the previous year, thrice-weekly joint roundtrips are launched in May between Toronto and Copenhagen.
B-767-283ER nonstops are inaugurated on June 6 between Copenhagen and Singapore. Also in June, an agreement is signed with Air New Zealand, Ltd. for hub coordination in Southeast Asia for onward travel to points in New Zealand.
In early July, the Scanair, A. B. charter subsidiary is allowed to takeover responsibility for its own flight operations, training, and maintenance; the independence movement is called “Own Wings.” Late in the month, a mutual-cooperation agreement is signed with Thai Airways International, Ltd. (THAI), under which an SAS/Thai supervisory board will be created with two representatives from each airline to implement, coordinate, and administer strategies and activities.
At the beginning of August, the carrier buys Frank Lorenzo out of Continental Airlines Holdings by acquiring his personal holding company, Jet Capital Corp. and 2.3 million shares of the American major; the SAS stake in Continental Airlines rises from 9.9% to 16.8%, with its voting control elevated to 18.4%.
At the same time, flights end to Rio de Janeiro. The Lorenzo purchase is approved by the U. S. DOT in September, the same month in which SAS sells its 50% interest in Linjeflyg, A. B. to the Swedish shipping company Bilspedition, A. B. for $82.6 million. At the same time, when the Anchorage stop is eliminated in favor of direct service between Stockholm and Tokyo, 6.5 hours are cut off the route operated with All Nippon Airways Company, Ltd. (ANA).
In October, 13-hour B-767-283ER flights begin nonstop from Copenhagen to Sao Paulo, at the same time as direct service to Rio de Janeiro is closed down. The route structure is otherwise extensively remodeled, including the introduction of service on October 28 from Copenhagen to Prague and Berlin. The arrangement with one of the carrier’s Chilean partners collapses in November, requiring the appointment of a Swedish manager for LanChile, S. A.
In November and December, extensive cuts are made in the airline’s North American operations. Of the 462 employees in the U. S., 126 are given early retirement as company headquarters are transferred from Manhattan to Lyndhurst, New Jersey, and property in Queens is sold.
During the year, the company joins with Swissair, A. G. to bring in Austrian Airlines, A. G. and expand the European Quality Alliance. SAS Leisure is also active, acquiring shareholding in Turin S. R.L., Club de Vacaciones, S. A. in Spain, the Swedish tour operator Plusresor, A. B., and Finland’s Tolvalomat.
Customer bookings for the year climb 6.8% to 14,955,000, making SAS the 21st biggest airline in the world. Cargo gains by a slight 1.2% to 431.38 million FTKs. Revenues jump 13.3% to $3.89 billion, the 12th best gain in the world. Expenses, however, shoot up 18.1% and cut the operating gain to $264 million, which is still 6th best. The net profit is $38.3 million.
The employee population is reduced by 5.1% in 1991 to 38,940 and the fleet now includes 2 B-767-283ERs, 13 B-767-383ERs, 9 DC-9-21s, 34 DC-9-41s, 21 owned and 8 leased McDonnell Douglas MD-81s, 14 MD-82s, 2 MD-83s leased to Scanair, A. B., 9 owned and 3 leased MD-87s, and 22 Fokker 50s.
Recession causes a decline in traffic and income and in January, a major restructuring occurs. The traffic services division is eliminated as six new divisions are created and President Carizon is given greater day-today control of operations.
In February, an Action Program is announced designed to reduce operating costs by $537 million. The plan includes a cut of up to 3,500 positions — 16% of the workforce—and creation of a joint data services company with Swissair, A. G. It is learned in March that the joint traffic system agreement with Swissair, A. G. has so far benefited SAS much more than the partner.
On April 6, flights are initiated from Copenhagen to Alicante, Spain. Also during the month, the company initiates MD-80 services from Stockholm and Oslo to Aarhus Airport, Denmark’s new No. 2 aerodrome 40 miles from Copenhagen, and from there to London (LGW).
The company’s nonstop service to Tokyo becomes daily on May 1.
Also in May, an agreement is signed with VARIG Brazilian Airlines (Viacao Aerea Rio-Grandeuse, S. A.) under which the Scandinavian carrier will purchase 40 seats and 12 tons of cargo space on each of the South American major’s 3 weekly flights to Copenhagen.
During the same month, the airline’s technical division is retained by Ethiopian Airlines, S. C. to provide advice on the construction and operation of a new hangar and maintenance facility project at Addis Ababa Airport, which is partially funded by a grant from the African Development Bank.
The Danish Supreme Court on June 26 fines six foreign airlines a total of Dkr 452,000 (US$64,570) for bringing illegal refugees to Denmark without visas or identity documents. The decision in the case against European operators SAS, Sabena (Belgian World Airlines, S. A.), KLM (Royal Dutch Airlines, N. V.), and the defunct Interflug, plus Iraqi Airways and Singapore Airlines, Ltd., has been eagerly awaited by the some 50 airlines flying into Denmark.
The companies have argued that it is not their responsibility to do the police’s work when checking in Denmark-bound passengers. Nor can they be expected to tell the difference between genuine and false visas and passports, or prevent passengers from tearing up their passports once on board the plane, as has often happened. The Supreme Court is unconvinced by their arguments, and orders the airlines to pay a fine of Dkr 8,000 per passenger illegally brought to Denmark.
To compensate Swissair, A. G. for the previous year’s negative financial generation under the joint traffic system, during the summer the Nordic consortium gives its partner its profitable Copenhagen-Geneva daily service. In its place, SAS introduces an evening Oslo to Geneva frequency via Copenhagen.
In July, the company warns its unions that unless agreement can be reached on the Action Program, “more sweeping structural changes” will be necessary. At the same time SAS Trading agrees to provide training and support as part of a new joint venture with LanChile, S. A. under which duty-free sales will be offered on the Chilean carrier’s international services to North America, Europe, the South Pacific, and throughout Latin America.
The following month, the two companies sign another accord under which LanChile, S. A. becomes general sales agency for SAS in Chile. The carrier receives its 50th MD-80 on August 9 and now owns the largest fleet of this type outside of the U. S. On August 19, roundtrips commence between Copenhagen and Kiev.
Having lost money on the thin route from Oslo to Aarhus, the company now signs a strategic agreement with the Danish regional Sun Air of Scandinavia, A. S., which takes over the route with a British Aerospace BAe Jetstream 31.
A new product development program is introduced on September 1 calling for innovation in in-flight and ground services. Later in the month, plans are announced to combine the subsidiary Scanair, A. B. with Conair of Scandinavia, A. S., owned by Denmark’s Simon Spies Holdings, to form the new charter operator Premiair, A. S.
World History
