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The new and improved SAS

SAS group CEO Jørgen Lindegaard complimented the 35,000 employees after the pilots were the last group to accept pay cuts. SAS is now ready to put the plan into life.

The SAS pilots continued to negotiate into the evening Tuesday and finally managed to reach an agreement with the management. The result is that Lindegaard managed to get all the employee organizations to accept pay cuts and increased work loads.

Complimented the unions
The SAS group’s goal is to save SEK 14 billion (USD 1.86 billion) annually in costs, and the goal is within reach now that all the employee agreements are in place. The pilot agreement alone saves as much as SEK 700 million (UDS 93 million).

«We have succeeded in achieving the savings which are required, and thanks to the conscientious labor unions, we have the requirements in place to become one of Europe’s most competitive network companies,» Lindegaard said.

According to Lindegaard, the goal of this savings campaign, Turnaround 2005, is to give SAS the ability to compete and profit in the long run.

SAS Braathens is good to go
The SAS board decided already Tuesday night to join SAS and Braathens into one, even if several of the labor unions had not accepted the management’s offers. SAS is also going to establish independent companies in Denmark and Sweden.

The intercontinental routs will be organized as a business of its own within the SAS group.

Joining SAS and Braathens into one company and the reorganization of the business structure is going to produce savings of between SEK 250 and 300 million (USD 33 and 40 million) annually.

The management in the Norwegian company will present the details connected to this at a press conference at 3:30 p.m. today. If everything goes according to the plan, the first plane with the new logo of SAS Braathens will take off as soon as in May of this year.

Changes in management
SAS will also make some changes in the top management sector after the division. The greatest news is that a new area called Airline Strategy & Condition will be established. The head of this department will be responsible of the superior strategically development of the company in addition to being responsible for the overview of coordination and cost synergies.

The executive managers for the three national airline companies in SAS will report directly to the group CEO Jørgen Lindegaard.

The SAS management in Stockholm consist of the following people after restructuring:

Jørgen Lindegaard, group CEO

Gunnar Reitan, vice group CEO, responsible for all the subsidiaries and the SAS hotels

Gunilla Berg, group director, economy and finance

Sören Belin, group director, Airline Strategy & Coordination

John S. Dueholm, group director, Airline Support and Airline Related Business

Bernhard Rikardsen, group director, responsible for the group staff and connected services

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