SAS is laying off 5,000 employees. But according to aviation analyst Jan Ohlsson, the announcement came too late.
”They have to realize that this is how development looks,” he says.
”"I think it's strange that you're so late in talking about this. Other major players in Europe, not least Lufthansa, have been very early in coming out with such information. And SAS doesn't have a better cash flow than Lufthansa. They have to realize that this is how things are going," says Jan Ohlsson.
The notice affects nearly half of SAS's workforce.
”"They don't really have any customers, but they do have some aviation business. They have to cut costs to survive. I wouldn't be surprised if they want a capital injection and then we have problems with state owners again. State ownership doesn't usually bring anything good. It doesn't mean anything good for customers, shareholders or entrepreneurs."”
The fact that SAS issued its press release about the notice only on Tuesday may be due to the news in recent days that Air France/KLM will receive a rescue package of 7 billion euros with support from the state and that German Lufthansa is in discussions about state support, Jan Ohlsson believes.
”It will be temporarily appropriate to press on,” he says.
Sydbank's aviation analyst Jacob Pedersen believes that SAS will need greater government support than the 1.5 billion Swedish kronor that the EU Commission approved last week.
”They will probably need more support from the Swedish and Danish states, but they also need to reduce their own costs as much as possible,” says Jacob Pedersen.
In March, the airline had nearly 60 percent fewer passengers compared to the same period last year.
”"The numbers in April will look worse. This is a company that is bleeding," says Jacob Pedersen.
For SAS to survive, it must adapt its suit to the new situation, with fewer aircraft and fewer employees, believes Jan Ohlsson.
”This applies for a longer period of time, for several years.”
If SAS goes bankrupt, Jan Ohlsson believes that they will be replaced by other players.
”"It is not a national disaster. They have no societal supporting function. The transport industry and the aviation industry in particular is a purely capitalist privately owned business that works best for shareholders and customers when it is private. If SAS disappears, it would still be replaced, probably by other foreign players, or if we have enough entrepreneurial spirit, by our own players," says Jan Ohlsson.
But Jacob Pedersen does not believe that the notice was the death knell for the airline.
”No, this is not the end for SAS, I'm pretty sure of that,” he says.
Source: di.se
