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SAS

Crisis-stricken airline SAS records heavy losses

Troubled Scandinavian airline SAS, which has filed for bankruptcy in the United States, reported deeper losses in the fourth quarter on Wednesday.

Pictured is an SAS plane taking off.
SAS has recorded heavy losses, according to its latest figures. Pictured is an SAS flight taking off. Photo by Odd Andersen AFP

Net losses amounted to more than 1.2 billion Swedish kronor ($117 million) in the August-October period, compared to a loss of 744 million kronor a year earlier, the company said in a statement.

“As with previous quarters in 2022, the currencies (foreign exchange) and jet-fuel price have brought strong headwinds for our business,” said SAS chief executive Anko van der Werff.

The airline, however, saw the “highest number” of passengers since the beginning of the Covid pandemic, with healthy demand in the summer, van der
Werff said.

The airline, which cut 5,000 jobs in 2020, is preparing for “substantial recruitments and rehirings” to meet the expected increase in demand next
summer, he added.

SAS filed for Chapter 11 bankruptcy proceedings in the United States in July — a move allowing a company to restructure its debts under court
supervision.

Van der Werff said the airline expected to complete the court-supervised process during the second half of 2023.

Earlier this year, The airline posted a net loss of 1.84 billion kronor ($170 million) for the May-July period, compared to a loss of 1.33 billion kronor a year earlier.

Earnings were “severely affected” by the 15-day pilot strike between July 4th-19th, which led to the cancellation of some 4,000 flights affecting more than 380,000 passengers, the company said in a statement.

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TRAVEL NEWS

New rail service planned through Norway, Sweden and Denmark to Hamburg

Plans for a new rail service running from Oslo and stopping in Gothenburg, Malmö and Copenhagen before arriving in Hamburg are in the works, Swedish state-owned rail operator SJ has said.

New rail service planned through Norway, Sweden and Denmark to Hamburg

Sweden’s state-owned SJ, along with Denmark’s DSB and DB of Germany, plans to offer a new international train line which runs between the Norwegian capital Oslo and Hamburg in northern Germany. 

The planned route would run daily, departing from Oslo at 8am before making stops in Gothenburg, Malmö and Copenhagen and arriving in Hamburg at 7pm. A service departing Hamburg and terminating in Gothenburg is also planned.

The 11 hour service would be quicker than the equivalent journey using either a car and ferry connection or existing train services. 

The planned service will enter into operation in 2027. Petter Essén, head of SJ’s vehicle and traffic programme, said the route made sense as it would connect a long stretch which doesn’t have continuous train traffic. 

“Today, there is a great deal of flying between Copenhagen and Oslo and between Oslo and Gothenburg, routes that would be fine by train,” Essén told Swedish newspaper Dagens Nyheter

Currently, the only direct trains from the Norwegian capital to other countries are services to Gothenburg and Stockholm. 

The European Commission has selected the potential line as one of ten pilot projects that will receive support. This does not mean it will receive direct funding from the EU, but it will get backing on regulations and logistics, Essén explained.

“You can get help with various regulations and the process of getting all vehicles approved in all countries,” he said.

Generally, many Swedish and Norwegian trains can only operate within Sweden and Norway, while the majority of Danish and German trains are not cleared to run in Sweden in Norway. 

The Snälltåget line between Stockholm and Berlin has also been selected to receive support from the European Commission. 

SJ also announced plans to increase the number of trains between Gothenburg and Malmö to ten per day and offer the Gothenburg-Copenhagen service all year round. It said that these plans could come to fruition by 2026 or 2027. 

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