Sas Marketing Review

             Background of Scandinavian Airlines System (SAS)
             Scandinavian Airlines System (SAS) began in 1946 from the merger of the Danish airline (DLL), Norwegian airline (DNL) and the Swedish airline(ABA) to operate overseas services for Sweden, Norway and Denmark.
             "Offer competitive air connection within between, to and from each of the three Scandinavian countries (Sweden, Norway and Denmark) partly using its own aircraft, and partly together with selected partners."
             Critical issues facing up until 1981
             1. Highest operating costs in the industry compared with US carrier and Asian airlines.
             2. Distribution system still not competitive
             3. Not sufficient traffic system which were not meet customers needs
             4. International recession, higher interest rates and fuel costs
             5. Overcapacity and less regulated competition
             6. Reputation going in declined stage both service and punctuality, e.g. 5% down on on-time performance (90% to 85%) which indicate a major drop by airline standards
             7. Kastrup airport became less attractive for traveller due to old fashion terminals compared to Amsterdam, Frankfurt or Zurich.
             8. Moving toward product driven rather than service-driven one.
             9. Misused of the right services to custiomers by obtained unsuitable type of airplane.
             10. Change of services style which become customer oriented in term of travel plan.
             1. Brand name and SAS logo is recognised in Europe
             2. Gained a strong foothold in European market
             4. Close relationships with other airlines (Swiss Air and KLM) after forming KSSU agreement
             5. Formed under tri-national airline
             8. Cooperative with other airline outside Europe e.g. Thai Airways International
             2. Not fully competitive distribution system
             4. Considerable losses in profit since 1979
             5. Kastkrub airport became less attractive
             6. Reputation for service and punctuality had deteriorated
             8. Fleet mix and route network did not meet market needs
             9. Mov...

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