SAS mulls entering discount market

  • 2002-09-12

Scandinavian Airlines System is increasing the fight against discount airlines and is ready to enter the discount segment, the daily Boersen reported Sept. 9, quoting SAS chief executive Joergen Lindegaard.

"I'm (thinking) much more about starting a low-price operation in the SAS group," Lindegaard told the daily.

SAS' original strategy to deal with the aggressive discount airlines was to lower prices.

"At the start of my time at SAS, I had the impression that we could deal with them through small adjustments in our own system," Lindegaard told the daily.

"I have left that philosophy. We must do something more substantial."

Allowing the SAS brand to carry a discount service is only one possibility being considered, the daily said.