A Time Of Overwhelming Profitability For Scandinavian Airways

By Cornelius Albus Xavier


In the not so distant past, there are several intriguing tales regarding the airline industry and Scandinavian Airlines is one that has had several ups and downs. There is an attention-grabbing demonstration if an airline has the ability to stay up and running for multiple decades. Around the world, the airline industry is one of the most grueling and that is a straightforward justification.

Along with an array of stresses, you have to deal with very narrow profit margins. On the whole, the aviation business is united pretty closely with and conditional upon the intensity of national and global economies. Following business sequences is something that airline companies do, whether it happens to be a thriving or an impoverished time. So with that said, let us take a look at Scandinavian Airlines and learn more about this unique company.

The partnership of airlines in Denmark, Sweden, and Norway came as no surprise. The founding of the airline occurred on 1 August 1946. WW II ended on 8/9 May 1945 in Europe and 15 August 1945 in the Far East, just one year prior to the formation of SAS. The end of WW II marked the beginning of a new era around the world and that enthusiasm lead, logically, to this alliance. It only took one month for the newly formed company to begin flight operations. In 1951, the SAS Consortium was created with the coordination of European operations as their prime mission. The ownership shares were proportioned between the three countries and each country divided their share 50/50 between private investors and their respective governments. Brand awareness and marketing is a large portion of the success of any airline. In the mid 1950's Scandinavian Airlines set the world on fire with it's marketing campaigns aimed at increasing it's brand awareness worldwide. Scandinavian Airlines plotted out a route over the North Pole with a maiden voyage to Los Angeles California on the western coast of the United States. This route allowed them to take advantage of a huge branding opportunity, coining the "round the world service over the North Pole" phrasing. The destinations serviced by that exact route included Denmark, Alaska and Japan.

The terrorist threats around the world and the 9/11 attaches resulted in increased security. To bolster and augment the existing security measures SAS implemented a biometric fingerprint identification system. Swedish SAS instituted this particular system to be used within Sweden. With the use of the biometric system a positive match between luggage and the person who owns it. The airline makes it very clear that the use of the biometric system is voluntary.

Over the years, the aggressive acquisition efforts of Scandinavian airlines has paid off over the years. They were instrumental in the creation of the global Star Alliance group of airlines during the 90s. Such business alliances exist to provide extra financial security and to also increase the capabilities of each airline. In the hyper competitive world of air travel and aviation there is strength in numbers. The divisions that make up the SAS since the 90's are Denmark, Norway, and Sweden. Finally, there is SAS Global which is the international flight division.

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