SAS chief mulls next round of cost cuts amid low-cost squeeze

Scandinavian Airlines parent SAS is looking at paring office jobs and introducing seasonal working while finalising plans to base jets abroad as it moves to extend cost cuts amid intensifying competition. SAS is evaluating “hundreds” of initiatives prior to announcing additional measures and targets in the second half of 2017, CE Rickard Gustafson said. Most of the new steps will be added to an existing US$166m program running until 2019. SAS is fighting to maintain its market share as discount specialists including Ryanair and Norwegian Air Shuttle continue their expansion while flag-carrier peers benefit from consolidation into bigger, more powerful groups. Some competitors also have a 35 to 40% cost advantage since pension and social-security costs are higher in Scandinavia, Gustafson said. <br/>