Singapore Airlines and Scandinavian Airlines sign mou to form strategic alliance

SINGAPORE AIRLINES AND SCANDINAVIAN AIRLINES SIGN MOU TO FORM STRATEGIC ALLIANCE Singapore (16 October 1998) - Singapore Airlines (SIA) and Scandinavian Airlines (SAS) announced today the formation of a strategic alliance that will provide passengers of both carriers with a wide range of improved benefits and seamless travel. The alliance will come into effect on 1 April 1999. A Memorandum of Understanding confirming the alliance was signed today in Singapore by Dr Cheong Choong Kong, Deputy Chairman & Chief Executive Officer of SIA and Mr Jan Stenberg, President and Chief Executive Officer of SAS. The partnership will cover code-share services, frequent flyer programmes, network and schedule development, through check-in, reciprocal use of airport lounges, joint promotions and marketing. The alliance with SAS will allow SIA to offer efficient connections to and from destinations in Denmark, Norway and Sweden via Copenhagen, and similarly to and from destinations across SAS's extensive European network, including the Baltics. Welcoming the agreement, Dr Cheong said, "The SAS-SIA partnership has all the hallmarks of a strong alliance. SAS is especially strong in the Baltic region and Northern European markets. It is highly respected for its standards of service, safety and reliability. We possess similar attributes, and our extensive Asia/Pacific route network complements that of SAS." Said Mr Stenberg : "Our partnership with SIA, an airline known for its quality and service, means that SAS will be able to offer customers improved service benefits, more choice and better travel solutions to and from the Pacific area via Singapore. SIA's route network, which complements that of our Star Alliance partner Thai Airways International, enables SAS to provide excellent services to all of Southeast Asia and also Australasia as a result of SIA's cooperation with Ansett and Air New Zealand." SIA currently operates three weekly non-stop flights between Singapore and Copenhagen, while SAS maintains daily services via Bangkok. As part of the agreement SIA will code-share on SAS's Copenhagen-Bangkok- Singapore flights four times a week, while SAS will code-share on SIA's three weekly direct flights between the two cities. Consequently, the two carriers will be offering joint daily services between Scandinavia and Singapore. The two carriers will operate from the same terminal in Singapore as well as in Copenhagen, and qualified passengers will have access to the airport lounges of both airlines. Implementation of through check-in procedures will result in easier travel, since passengers need to check- in with their baggage only once. Recently, SIA and SAS have each made huge investments to boost their corporate image. On September 24, SAS launched a 700 million Swedish kronor corporate identity programme including new livery, its first in 15 years. In September, SIA unveiled a S$500 million new product, which provides brand new First, Business and Economy Class Cabins, new inflight service features, and a new First Class check-in reception at Changi Airport. SIA recorded a profit attributable to shareholders of S$1.035 billion for the year ending 31 March 1998, carrying 12 million passengers and 735.9 million kg of cargo. SIA operates a fleet of 90 aircraft and serves 82 cities in 40 countries. With effect from 25 October 1998, in light of code-sharing arrangements with other alliance partners, the number of SIA destinations will increase to 97. For the year ended 31 December 1997, SAS recorded a pre-tax profit of 2,231 million Swedish kronor (USD 292 million at an average exchange rate of USD 1 = 7.64 SEK). The airline carried 20.8 million revenue passengers and 280,000 tons of freight with a fleet of 168 aircraft, serving 100 cities in 34 countries. *** For further information, please contact: Scandinavian Airlines Corporate Communications Department Tel : (468) 797-2306 Fax : (468) 797-1515 Singapore Airlines Ltd Public Affairs Department Tel : (65) 541-5880 Fax : (65) 545-6083 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/07/30/20030730BIT00350/wkr0001.DOC http://www.waymaker.net/bitonline/2003/07/30/20030730BIT00350/wkr0002.pdf