Aviation expert Jan Ohlsson describes the CEO job at SAS as one of the most thankless jobs one can have today, and believes that the company may soon need to raise new money.
SAS CEO Rickard Gustafson, 56, announced on Monday evening that he is moving on in the Wallenberg sphere and will become CEO of SKF, after ten years at SAS. Jan Ohlsson, flight expert With a background as editor-in-chief of several industry magazines and SAS's internal magazine, the outgoing CEO gives a good rating.
”"He has been a good SAS manager and has accomplished a lot with several skillfully handled crises, good aircraft purchases given an upward aviation economy and reduced costs. SAS was in good financial shape before the pandemic, but now the company is in a very turbulent time and you have no room whatsoever to choose the wrong manager - now it is a crisis, with too big and too many aircraft," he says, stating that there are several less successful choices in SAS's CEO history alongside successful men such as the hard-line rationalizer Curt Nicolin in the 60s and the socially virtuoso Jan Carlzon in the 80s.
”"The CEO job is one of the most thankless jobs you can have: you have to hit the brakes, make savings, speed up the aircraft phase-out, take up contentious issues with SAS about salary cuts, staffing companies and foreign assignments," says Jan Ohlsson.
He recalls how Rickard Gustafson said last fall that the money raised would be enough until 2022 if the trend continued upward, albeit weakly.
”"But it doesn't, it's rather going down, so the question is when SAS needs new capital. A new CEO will have to expect that the cash may run out already this year. Prices are still quite low, despite increases that began before Christmas, and in Norway Wizz Air is putting pressure."”
He continues with his gloomy picture:
”"You probably won't get much more profitability in either Sweden or Norway, European traffic is largely down due to the pandemic and long-haul traffic is not picking up due to a lack of business travelers. Several other companies have had to reduce staff salaries, something SAS has not yet done to any great extent but is said to have on the agenda. The problems are just piling up."”
Jan Ohlsson is not surprised that Rickard Gustafson is leaving, but that he has stayed for so long.
”"If he had left before the pandemic, he would have left on top, but he might have been waiting for a new job. After ten years, you might be a little tired of the job."”
He is not aware of any internal CEO candidates and says that there are examples of both internal and external recruitment historically.
”"A delicate question is whether there should be a Swedish or Danish CEO. Actually, it's time for a Danish one now, and they are of course on the defensive to defend Copenhagen. Now with increased state ownership, the question is how much the politicians will get involved."”
Jan Ohlsson describes how aviation is more important politically and industrially for the Danes than for the Swedes: aviation shame is greater in Sweden while Kastrup is an important employer.
”"For Denmark, it is extremely nationally important that Copenhagen be the hub."”
SAS does tend to "rotate": with a chairman from Denmark, it is usually a Swedish CEO and vice versa. The nationality issue is important:
”"With a Danish CEO, there will be a lot of pressure to save as much traffic to Copenhagen as possible, which would not be good for Sweden. But SAS still has too big aircraft, and three hubs is actually too many."”
A possible Swedish CEO name being mentioned in aviation circles is the CEO of the low-cost airline Easyjet since 2017, Swede Johan Lundgren.
”"He is highly respected by everyone in the travel industry, has all the qualifications and is said to be on a collision course with the owner (Greek Cypriot Stelios Haji-Ioannou, Di's note), but the question is whether he wants the job," says Jan Ohlsson about it.
Rickard Gustafson can be considered an important person for the Wallenberg sphere, given that he is a board member of the foundation company FAM and is now going to a significantly larger custody measured in terms of share of the family's portfolio: SAS is worth just over 400 million kronor compared to SKF's 15 billion kronor, and in SAS the Wallenbergs only own just over 3 percent after halving it last year, while they are the main owner of SKF.
”"The interest is still there, for reasons of prestige more than anything else, but the Wallenberg sphere does not seem to see this as a profitable future investment as far as I can see," says Jan Ohlsson.
Should states keep their old flag carriers under their arms?
”"No, then they will be easy for their employees instead of their customers. Airplanes are really buses with wings, and low-cost airlines work just as well. Business travelers are unlikely to come back now that companies have learned during the pandemic that they don't need to spend so much money on flights."”
Source: di.se
