DANAIR, A GROUPING of Denmark's three largest airlines - Scandinavian Airlines System (SAS), Maersk Air and Cimber Air - is to be dissolved as the country deregulates its domestic market on 1 October to comply with European Union liberalisation legislation. The grouping controls around 95% of the market.
Danair's outgoing managing director Gunnar Tietz says that he does not expect a significant change in the 2-million-passengers-a-year domestic market, although he believes that liberalisation may encourage additional flights and more choice. He adds that the new competitive environment will not drive down prices.
Cimber Air's managing director, Jan Nielson, agrees, adding that fares are at a realistic level. The recent co-operation agreement with SAS for additional frequencies on its routes from Copenhagen to Aalborg, Aarhus and Karup, will increase Cimber's market share, now standing at 5%.
There is additional concern among the airlines about the likely effect of the road bridge and rail tunnel being built to link Sjaelland Island, on which Copenhagen is situated, with Funen and the Jutland mainland. Air traffic at Maersk Air's Billund hub and routes to Aalborg and Odense could suffer most.
Among the other, smaller, airlines (Muk Air, Newair and Sun-Air) only the last-named flies domestic routes. Sun-Air may add a new service to Aalborg, but this will be complementary.
Source: Flight International
