SAS Hub Strategy Highlights Scandinavian Network Shift

panelists on stage
Credit: Ocean Driven Media

RIMINI, Italy—SAS Scandinavian Airlines’ strategy to expand Copenhagen as its primary intercontinental hub is raising concerns in Sweden about the future of connectivity from Stockholm as the Scandinavian carrier moves closer to deeper integration with Air France-KLM and SkyTeam partners.

Speaking during a panel discussion at Routes Europe in Rimini, Italy, SAS Head of Network International Gonzalo Pernas outlined how the airline is centered increasingly around Copenhagen. The shift comes as Air France-KLM moves toward increasing its stake in SAS to 60.5% and as the airline prepares to potentially join the SkyTeam transatlantic joint venture with Delta Air Lines and Virgin Atlantic.

“We thought there was an opportunity in the European map where you have a lot of strong hubs in Central Europe, but you don’t have a strong global hub north and east of Amsterdam or Frankfurt or Zurich,” Pernas said when asked about the carrier’s strategy from Copenhagen.

As part of that approach, SAS has added long-haul routes including Seoul and Seattle and plans to launch Mumbai service in June. Pernas said the airline increasingly wants passengers from markets such as Belgium, Finland, Germany, and Poland, to connect through Copenhagen rather than through larger European hubs farther south.

The strategy also is tied closely to SAS’ evolving relationship with Air France-KLM and SkyTeam following its exit from Star Alliance.

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“We are now going back to a clear premium and connecting carrier focus,” Pernas said. Although Air France-KLM currently holds only a minority stake in SAS and the transaction to take a majority share remains under review, Pernas said the airline expects deeper coordination in the future.

“Hopefully, at some point we will be integrated in the transatlantic JV with Delta and Virgin,” he said. “Then we can think on transatlantic route planning together.”

However, Swedish airport operators said SAS’ growing emphasis on Copenhagen is already affecting Stockholm’s long-haul connectivity as more Scandinavian traffic is funneled through Denmark.

“The challenge that we are facing is the North American traffic,” said Elizabeth Axtelius, director of aviation business at Swedish airport operator Swedavia. “SAS is focusing more and more on Copenhagen ... and that is a huge challenge for us.”

Axtelius said Sweden is also dealing with reduced domestic competition and broader pressure on regional connectivity, particularly for smaller airports. This follows Braathens Regional Airways’ (BRA) wet-lease agreement with SAS that saw BRA end scheduled regional flying.

However, Pernas pushed back against suggestions that SAS is abandoning Stockholm, adding that the airline still operates daily New York service from the Swedish capital and continues to expand some international flying there. He said that SAS recently opened service from Stockholm to Madrid and increased frequencies from Oslo to Dublin and Brussels.

Pernas also acknowledged that SAS’ evolving role within SkyTeam could eventually deepen integration with Air France-KLM and its transatlantic partners, but he said that the airline remains independent for now while regulatory reviews continue.

“We are still an independent airline,” Pernas said. “But of course, when you get investors, and part of those investors are in an alliance, it makes sense to redesign everything.”

 

David Casey

David Casey is Editor in Chief of Routes, the global route development community's trusted source for news and information.

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