SAS has responded to the threat of competition on its profitable Nordic services by piloting a new simplified product, SAS Express. SAS Express is being used to brand 14 daily Stockholm-Oslo services for a three-month trial period from 22 October but could be extended throughout its Nordic and domestic network.
SAS Express is aimed squarely at the business traffic targeted by Braathens Safe, which will launch its own six-daily Stockholm-Oslo service on 6 November. SAS' product owes much to the defunct Express concept of its partner Lufthansa with a reliance on no in-flight meals except breakfast - and ticketless travel opportunities.
But with the introduction of a new range of lower fare brands, SAS runs the risk of causing confusion among passengers, which ultimately sunk the Lufthansa brand.
Jan-Erik Ekenhill, project manager for SAS Express, says the concept started life in April before Braathens announced its plans and aimed to cater for 'the hassle-free category' of business passengers on short-haul.
Ekenhill says customer preference rather than cost saving was the primary motivation for the move. Though there are cost savings from in-flight meals and staff, the introduction of an airside cafe facility for passengers - the SAS GateCafe - will actually increase average costs.
Per Oedegaard, Transwede's new president, says the SAS response was expected but believes fares will not fall any more when Braathens enters the market. Braathens completed its acquisition of a 50 per cent stake in Sweden's Transwede in September.
Doug Cameron
Source: Airline Business
