SAS proposes structural changes in home markets - could establish a joint company in Norway

SAS proposes structural changes in home markets - could establish a joint company in Norway As part of the "Turnaround 2005" program of change and work to create the necessary competitiveness, the SAS Group is evaluating various production structures for its airlines in the three Scandinavian countries. In the Danish, Norwegian and Swedish markets, operations must undergo significant changes to form a competitive low-cost platform. In Denmark and Sweden the changes will be carried out within the framework of the organizations existing in each country, but in such a manner that both the low-price and full-service segments can be served efficiently. Structural and market conditions demand more extensive changes in Norway. Wideröe is not included in the proposed changes. Group management in SAS will present to the Board of Directors a proposal for a new structure for the operations in Norway. The trade unions in Braathens and Scandinavian Airlines were informed about the proposal today. The proposed realignment of jet aircraft operations in Norway will create a cost level that provides the increased competitiveness required in the market. Group management considers that the best business solution is to integrate the entire organization of Braathans and Scandinavian Airlines in Norway into a joint company that will serve the Norwegian market in a competitive manner. Such a company could mean that all operations are gathered either into one of the existing companies or into a new company. The solution is conditional upon efficiency enhancement efforts and that new agreements are reached with employees on reduced salaries and work terms to create the necessary profitability and competitiveness. An integration with these conditions fulfilled will then be carried out through a transfer of operations, with the rights this entails for the affected employees. The managements of Braathans and Scandinavian Airlines will continue discussions and negotiations in the future with the trade unions. Many questions of a business and operative nature remain and these must be resolved before Group management presents its proposal, as planned, for SAS's Board for final decision in March. The proposed changes will ensure the SAS Group's ability to compete in all segments of the market, in terms of price and products, which as planned will be offered to customers as of May this year. For more information, please contact: Hans Ollongren, Senior Vice President, SAS Group Corporate Communications, Tel: +46 8 797 19 50 or +46 709 97 19 50 SAS GROUP CORPORATE COMMUNICATIONS ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/01/28/20040128BIT00180/wkr0001.doc http://www.waymaker.net/bitonline/2004/01/28/20040128BIT00180/wkr0002.pdf