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DALLAS — 2024 has undoubtedly been a year that will be remembered forever in the history of Scandinavian Airlines (SK). The Nordic airline, which had been going through a challenging financial situation since the COVID-19 pandemic, signed in October 2023 a crucial purchase agreement with the Air France-KLM Group, where the Western giant would acquire up to 19.9% of the SAS stake.
As part of the agreement, SK agreed to switch alliances and join SkyTeam, founded in 2000 by Air France (AF), among other airlines. This meant that SK would have to abandon the airline alliance it created with its peers 27 years ago.
Since September 1, SAS has been fully included in the SkyTeam alliance, announcing new strategic changes to adapt to its new investors' commercial and financial requirements. In this exclusive interview with Airways, SAS's Chief Commercial Officer, Paul Verhagen, guides us through Scandinavian Airlines' financial and operational state at the end of 2024.
The SAS Strategic Position by the End of 2024
In a year of strategic changes, what financial and commercial position do you see SAS ending 2024 in?
“A much stronger position even because we have a clear roadmap for our strategy going forward. We have had new owners since a few months ago, which is a combination of private equity, the Danish state, and Air France-KLM. We will grow out of our hub in Copenhagen after the few network announcements out of CPH in Europe and other continents. By summer 2025, Copenhagen will have 70% more O&Ds (origins and destinations) and 50% more frequencies to those O&Ds than the previous course.”
As a side note, SAS launched a significant network expansion that included first-ever flights and resumptions to SkyTeam hubs, such as Madrid (MAD) and Bucharest (OTP).
Transiting from Star Alliance to SkyTeam
After joining the SkyTeam alliance, in which commercial aspects is SAS being complemented most?
“SkyTeam may not be the biggest alliance, but it is where the members have the deepest integration for the customer's benefit. We are working hard to ensure this integration, seamless connectivity, and recognition of tear status exist between us.”
As it ends its relationship with Star Alliance and shifts to SkyTeam, will SAS end any connections or reduce frequencies in favor of new opportunities?
“When you join an alliance, the natural network move is to start flying to the hub airports of that alliance. However, Star Alliance hub airports still have a market alone without necessarily needing a partner. We can still have bilateral partnerships with some Star Alliance members.”
The State of the SAS Network in East Asia
What is your view regarding the closure of Russian airspace in the long term? Do you see Chinese airlines, which can fly over Russia, as a threat to an eastward expansion of SAS?
“It’s difficult to answer. Our cancellation of the route to Shanghai is purely because of geopolitical reasons. Flying around Russia made flight times 4 hours longer round-trip than the competition with these overflight rights. There are also additional costs, additional crewing, additional fuel, etc. That does not mean that we are giving up on Asia. Our long-haul fleet will grow, and Asia will, therefore, grow as well. But this depends on factors that we don’t control.”
Despite not being able to overfly Russian territory, with the switch to the SkyTeam alliance, Scandinavian Airlines has now achieved an inevitable partnership with China Eastern Airlines (MU), which may help connect passengers from Copenhagen, Oslo, and Stockholm to East Asia in case MU opens non-stop flights to these cities.
The Scandinavian Airlines Fleet Structure in the Future
The A330s are among the most aging in the SAS fleet. What are your plans regarding their retirement and replacement in the long term?
“Not all the Airbus A330s in our fleet are the same age. A few of them are still too young to think about their retirement. Also, aircraft age isn’t necessarily related to decreased passenger comfort. We will receive two additional Airbus A350s in early 2026, but those will allow for network growth, and we don’t have plans to retire the Airbus A330.”
How’s the Airbus A321LR adapting to the current long–haul SAS strategy? Are you considering even longer-range options for narrow bodies?
“Perfect, both in terms of operation and commercial performance. It is the right aircraft to serve these routes, test out new markets, and see how they evolve. In the Copenhagen-Boston route, we started with the A321LR, then upgraded to the A330, and now we are flying the A350. We are not looking at the A321XLR, and neither at additional A321LR units.”
The Role of SAS in Sustainable Aviation
What is the current phase of the SAS projects that support sustainability? What are the latest updates regarding electric flights from 2028?
“In absolute terms, we are the world's second biggest sustainable fuel (SAS) users, only behind our partner Air France-KLM. Regarding electric flights, the project, in collaboration with Heart Aerospace, is going according to plan. The tickets for our first electric flight in 2028 were sold in seconds, and it says something about the eagerness of the passengers and us to make this happen.”
About the Current SAS Fleet & Network
Starting the winter 2024 season, the SAS Group operates a fleet of 132 aircraft, including a wide range of regional, narrowbody, and widebody airframes. Most notably, SK retired its last Boeing 737 unit in November 2023 in favor of the more efficient Airbus A320neo family.
Despite this, SK still operates one 737-700 plane, registered as LN-RPJ, but not for commercial purposes. This unit is configured in a particular medical evacuation layout and flies around twice a week on dedicated rescue missions across Europe.
Regarding its network, SK connects Scandinavia with 131 destinations across 38 countries. The route map is continuously changing, with the current restructuring after the alliance switch to SkyTeam.
Featured image: Alberto Cucini/Airways
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