New Group structure and management organization at SAS

New Group structure and management organization at SAS On assuming his position as new President and Chief Executive Officer of SAS on May 8, Jørgen Lindegaard presented the main features of a new structure and management organization for the SAS Group. The organizational changes should be viewed against the background of the partly new needs for focused and well-coordinated business and market-development activities that are resulting from SAS's planned expansion in the next five years. The aim of the new organization is to further improve the Group's capacity to conduct efficient sales activities capable of generating volume growth that exceeds the market average. Other objectives include strengthening the SAS brand, creating a traffic system that provides value for money and improving service, efficiency and quality, thus boosting SAS's profitability and shareholder value. "Since the airline industry continues to be subject to comprehensive change, a flexible organization capable of rapid reaction is essential if we are to successfully adapt to the new conditions prevailing in the sector," says Jørgen Lindegaard. "At the same time as we increase the degree of independence of our various units, in an effort to boost their business efficiency and provide them with greater responsibility for profits, we're now adapting the organization in order to attain a uniform overview, and joint control and management of the SAS Group." In brief, the structural and organizational changes will result in all operations in the SAS Group being incorporated in the following areas: Airline Commercial, Airline Operations, Affiliated Airlines Businesses, Non-Airline Businesses and Corporate Functions and Support Services. "A new, smaller Group Management team with six members is being formed with responsibility for the strategies and operations of the SAS Group as a whole. Within Group Management, responsibility for the airline company will be divided into Airline Commercial, for which Vagn Sørensen will be responsible, and Airline Operations, headed by Marie Ehrling. Nine independent units will be linked to Airline Commercial and Airline Operations and these will jointly constitute the airline company. The six members of the SAS Group's Group Management team are: Jørgen Lindegaard, President and Chief Executive Officer Vagn Sørensen, Executive Vice President responsible for Airline Commercial Marie Ehrling, Executive Vice President responsible for Airline Operations Gunnar Reitan, Executive Vice President and Chief Financial Officer (CFO) Bernhard Rikardsen, Senior Vice President responsible for Human Resources Henry Sténson, Senior Vice President responsible for Communications. Marie Ehrling will also be Accountable Manager for SAS Airline, with responsibility for ensuring that operational airline activities are conducted in accordance with the rules and regulations established by the National Civil Aviation Administration and by SAS. In order to ensure close relations between the SAS Group and the three scandinavian countries Vagn Sørensen will have special responsibility for representing the SAS Group in Denmark, Gunnar Reitan in Norway and Marie Ehrling in Sweden. Areas of primary focus at present and which are being assigned priority in strategic planning include Corporate Strategy, Shareholder Value, Customer Satisfaction, Operational Quality, Brand and Identity, People and Knowledge Management, Communications and Public Relations. The organizational changes, which have undergone negotiation with the trade unions concerned, will become effective immediately. Although it is estimated that the reorganization will result in a small amount of surplus head office personnel, it will not give rise to any termination notices. "SAS has entered an important and dynamic phase, during which we will have to concentrate our resources and focus our attention on business development and expansion," says Jørgen Lindegaard. "In view of this, I'm pleased to be able to rapidly establish a structural and management format that I expect to increase our business impact and competitiveness. Together with managers and other employees within SAS, I look forward to capitalizing on the potential that SAS has already developed, with the aim of creating an even more attractive airline company for employees, customers and shareholders alike." For further information, please contact: Henry Sténson, Senior Vice President, responsible for Communications +46 709 97 14 55 Please find the new organisation chart at: https://www.scandinavian.net/company/newsfacts/press/latest.asp SAS CORPORATE COMMUNICATIONS ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/08/20010508BIT00930/bit0001.doc http://www.bit.se/bitonline/2001/05/08/20010508BIT00930/bit0001.pdf