SAS to cut costs by up to 5% a year until 2015

“Performance management” to be established for goal setting and follow-ups

SAS says it plans to reduce unit costs by between 3% and 5% each year until 2015. The Scandinavian airline has already cut costs by 23% since 2008 through its previous strategy Core SAS. Now it intends to launch a new strategic platform, which it calls 4Excellence, focusing on several areas – commercial, sales, operational, and people. It wants to maintain its position as a choice for business travellers but will simultaneously expand its offerings to strengthen market share in the leisure travel segment.
“We will offer an even better and more harmonised service, including Economy Extra on domestic routes in Scandinavia,” SAS CEO Rickard Gustafson said. The cost cutting is to be achieved by greater focus on productivity, including the introduction of “performance management” for systematic goal setting, follow-ups and coaching. “All employees are to understand how they contribute to SAS’s overall goal,” Gustafson explained.
[pictured: SAS Economy Extra]


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