Flight International online news 11:30: Scandinavia’s SAS Group has virtually completed its wide-ranging turnaround programme with just SKr500 million ($61m) worth of savings measures to be put in place by the end of this year.
The company’s ‘Turnaround 2005’ programme, initiated three years ago, aimed to implemented strategies to save a total of SKr14 billion.
Some SKr200 million in savings measures are yet to be imposed within the Scandinavian Airlines businesses, while a total of SKr300m will be sourced from the technical services, ground services, and distribution activities.
SAS Group, which unveiled much-improved nine-month results today, says that the ‘Turnaround 2005’ strategy has achieved a positive earnings impact of SKr2.4 billion for the first three-quarters of the year.
It contributed to a unit cost reduction of 5.1% in the Scandinavian Airlines business division over the nine-month period.
Over the course of 2006 the strategy is expected to generate benefits of SKr1.6 billion for SAS Group.
DAVID KAMINSKI-MORROW / LONDON
Source: Flight International
