Is it all About Money? Do UK Business Travellers Require More Than Just the Lowest Fare?

Are UK leisure customers returning to the traditional carriers?

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. October 14, 2008

LONDON, UK, November 12, 2005. Scandinavian Airlines System (SAS) is hailing the success of its new one-way pricing structure as proof that today's business traveller requires more than just cheap fares to service their needs.

SAS has seen double-digit passenger growth in the two months since the launch of the one-way fare concept. More significantly the airline is seeing record cabin factors on its UK routes, with an increase in cabin factor of 15 per cent in September and October against the last year.

The success of its new pricing structure is evidence that today's business traveller requires more than just low fares, signalling a return to the full service network carrier.

SAS has also attracted business passengers whose first concern is price and who are now able to purchase best buy fares on the day of travel with the SAS economy product, while still seeing a demand amongst passengers who need the facility to change flight arrangements, and who value this above price, for example, Economy Flex (our premium Economy product) and Business Class.

The ability to combine fares across all three classes has proven a hit with passengers, allowing them to travel out on a restricted (no changes allowed) Economy fare, and back on an Economy Flex or Business Class ticket, which provides the ability to change their flight according to their schedule and preference.

Joergen Lindegaard, President and Chief Executive Officer of SAS Group said at an industry lunch today,"Like most airlines, we have been through some very tough few years. The industry has never been exposed to such extreme competition as it is now, creating a very busy operating environment

"We have had to make drastic changes to the way we operate the Group as a whole and in particular to our airlines. We are now reaping the benefits of these changes. As our third quarter financial results show, the SAS Group today is in a much stronger position, and we are on target to return to profitability by the end of the 2005."

"Passengers are returning to SAS. We now offer a fare structure which competes with the low cost competition, and also offers the premium benefits of a traditional carrier - customer service, comfortable travel, convenient airports, loyalty rewarded and brand assurance.

"We are driving growth in a buoyant UK/Scandinavian market, and have seen our share in the market increase to 38% in September 2005 (our highest market share since 2003), thanks to winning back passengers from our competition."