THE Scandinavian airline SAS has announced plans to establish a new base in Spain in an effort to slash staff costs.
The air travel market in Europe is experiencing intense price pressure and rising demand for leisure travel.
To secure the company’s long-term competitiveness and to take an active role in the growing leisure market, SAS is now taking a further step to reduce the cost differential to newly established competitors.
The airline has decided to establish a new AOC (Air Operator Certificate) in Ireland with operational bases in London and Spain.
It is understood SAS could save up to 40 percent on its wage bill by hiring personnel from outside Scandinavia.
“In line with SAS’s strategy of focusing on those customers who travel frequently to, from and within Scandinavia, the majority of SAS’s airline operations will continue to be based in Scandinavia moving forward,” said Rickard Gustafson, the CEO of SAS.
“The establishment of new bases means we can complement our Scandinavian production and, in time, build an even broader network with a superior schedule to the benefit of our customers.”
SAS is the flag carrier of Sweden, Norway and Denmark and the largest airline in Scandinavia.
The new Spanish base is expected to be operational in late 2017 or early 2018.