SAS EuroBonus - Final breath for Spanair

Qatar Airways has withdrawn from a 49% ownership option (150 million NOK) in Spanair. JK, failing to find a new buyer are forced to declare themselves bankrupt with a debt of 1,5 billion €. All operations will be suspended after midnight today.

What are the consequences for SAS? SK owns 10,9% and this may affect their cash flow with 100-200 million NOK. SK claims they have been prepared for this since 2010.

Exciting to see what the long-term outcomes will be like.

Sources: E24 (http://e24.no/naeringsliv/spanair-er-konkurs/20146995) (Norwegian) Economia (http://economia.e-noticies.es/spanair-quiebra-61106.html) (Spanish)

SAS seem to lose 1,42 billion DKK
http://politiken.dk/erhverv/ECE1522044/sas-faar-milliardtab-paa-spanair-konkurs/

Sad loss, I used spanair a lot. Not a fan, but they had some good routes to BCN and I've used them to Africa as well.

SAS seem to lose 1,42 billion DKK
There's a difference between the write down and the actual liquidity effect. And since SK has been financial prepared, it will have a limited effect. You can read the official press release (http://se.yhp.waymaker.net/sasgroup/release.asp?id=241696).

Very sad loss indeed. I remember flying Spanair when they operated some charter flights from TRD to The Canary Islands in the early 90s.

Thinking of SAS' various foreign adventures, entered into back in the day when it was a global leader rather than today's takeover fodder, it strikes me that they had an uncanny ability to divest themselves of their equity in the ones that ended up successful (TG, CO) and were left with their shares of the basketcases (BD, JK). Then again, today it does seem quite canny to have found a buyer in time for most of their JK shares - at least they got something back.

Then again, today it does seem quite canny to have found a buyer in time for most of their JK shares - at least they got something back.

Well, no. They sold a 80% share in Spanair for 1 euro. This is because they did seek to sell earlier, but cancelled the sale process in june 2008 because the "price wasn't right". And then the october 2008 crash at Barajas occured, on top of the financial armageddon in the wake of Lehman Brothers. So yeah, SAS got quite royally shafted there.

Thinking of SAS' various foreign adventures, entered into back in the day when it was a global leader rather than today's takeover fodder, it strikes me that they had an uncanny ability to divest themselves of their equity in the ones that ended up successful (TG, CO) and were left with their shares of the basketcases (BD, JK). Then again, today it does seem quite canny to have found a buyer in time for most of their JK shares - at least they got something back.

I am not sure they divested Continental directly, Continental went in to its second bankruptcy shortly after SAS joined the owners' circle. Continental only emerged from chapter 11 3 years later. So success was not really at the horizon at that point. I am not sure when the limitation on foreign ownership of airlines in the US came about, but SAS could have been forced out of CO anyway. If they were not already restricted from control at that point.

Well, no. They sold a 80% share in Spanair for 1 euro. This is because they did seek to sell earlier, but cancelled the sale process in june 2008 because the "price wasn't right". And then the october 2008 crash at Barajas occured, on top of the financial armageddon in the wake of Lehman Brothers. So yeah, SAS got quite royally shafted there.

Oh dear. And a euro was worth a whole DKK less then than it is now! So then I was even more right than I thought - it was a totally disastrous investment...

Gone. Sad. I travelled with them many times.

http://www.washingtonpost.com/business/spanish-airline-spanair-runs-out-of-funds-to-cease-operating/2012/01/27/gIQApt2zVQ_story.html?tid=pm_business_pop

I am not sure they divested Continental directly, Continental went in to its second bankruptcy shortly after SAS joined the owners' circle. Continental only emerged from chapter 11 3 years later. So success was not really at the horizon at that point. I am not sure when the limitation on foreign ownership of airlines in the US came about, but SAS could have been forced out of CO anyway. If they were not already restricted from control at that point.

Chapter 11 bankruptcy shafts the creditors, not the shareholders. The law stating that at least 50 of the shares and 75 of the voting ones hasn't changed between then and now, as far as I know. I'm not saying that it would have been a brilliant investment to hold on to over 23 years - it wouldn't have made sense to keep it with SK being a member of *A and CO a member of Skyteam - but SK management has hardly displayed the Midas touch in their investment decisions.

Chapter 11 bankruptcy shafts the creditors, not the shareholders. The law stating that at least 50 of the shares and 75 of the voting ones hasn't changed between then and now, as far as I know. I'm not saying that it would have been a brilliant investment to hold on to over 23 years - it wouldn't have made sense to keep it with SK being a member of *A and CO a member of Skyteam - but SK management has hardly displayed the Midas touch in their investment decisions.

No, they have not really. Apart from Radisson SAS, which was sold off at right time and price, there are few investments from SAS that has been really good. Maybe the take over of Braathens and Linjeflyg, but difficult to say as they are now fully integrated in the currently not so successful SAS.

No, they have not really. Apart from Radisson SAS, which was sold off at right time and price, there are few investments from SAS that has been really good. Maybe the take over of Braathens and Linjeflyg, but difficult to say as they are now fully integrated in the currently not so successful SAS.

I'm not even sure of that. Didn't the purchase of Linjeflyg include the acquisition of Jan Carlzon? :D

No more reservations, no more flights.
http://www.elmundo.es/elmundo/2012/01/27/barcelona/1327681726.html

http://www.n-tv.de/wirtschaft/Spanair-ist-am-Boden-article5345831.html

I'm surprised the BBC hasn't picked this up yet.

I'm surprised the BBC hasn't picked this up yet.

Maybe because JK never bothered to fly here? That may even have been part of their problem.

I'm not even sure of that. Didn't the purchase of Linjeflyg include the acquisition of Jan Carlzon? :D

Linjeflyg was acquired in the early 90'ies, so either at the very end of, or after the tenure of Jan Carlzon. And though he probably did get stuck in his past achievements, and did not end very successfully, the begining really turned things around for SAS in the very early 80'ies. I would argue that there were more positve than negative from him in SAS' history.

Linjeflyg was acquired in the early 90'ies, so either at the very end of, or after the tenure of Jan Carlzon. And though he probably did get stuck in his past achievements, and did not end very successfully, the begining really turned things around for SAS in the very early 80'ies. I would argue that there were more positve than negative from him in SAS' history.

That's very generous towards us Swedes - I thought it was you Danes that resented him and his ilk the most. My own resentment over him scrapping F and the 747s is very possibly of a sentimental nature. But what do you make of a man who writes ""Mistakes can usually be corrected later; the time that is lost in not making a decision can never be retrieved”? Sorry Forum, totally OT I know.

Arrived on JK037 yesterday 21.58, pretty lucky.

Sad with Spanair, liked their comfort option. Crew was always great.

Only flew them once and thought they were fine.

Chapter 11 bankruptcy shafts the creditors, not the shareholders. The law stating that at least 50 of the shares and 75 of the voting ones hasn't changed between then and now, as far as I know. I'm not saying that it would have been a brilliant investment to hold on to over 23 years - it wouldn't have made sense to keep it with SK being a member of *A and CO a member of Skyteam - but SK management has hardly displayed the Midas touch in their investment decisions.

Chapter 11 bankruptcy filings for most large publicly-traded companies wipes out all of the common stock shareholders at the time of the bankruptcy way more than it wipes out all creditors. Under Chapter 11 bankruptcy protection reorganizations, creditors often end up being the next equity stakeholders in the company as the company debt obligations may be converted into equity stakes in some form or another.

Investing in airlines for the long term seems like a bigger loser proposition relative to investing in the airline finance and leasing business.

That's very generous towards us Swedes - I thought it was you Danes that resented him and his ilk the most. My own resentment over him scrapping F and the 747s is very possibly of a sentimental nature. But what do you make of a man who writes ""Mistakes can usually be corrected later; the time that is lost in not making a decision can never be retrieved”? Sorry Forum, totally OT I know.

I don't really know why we Danes particularly should resent him, but maybe there is a part SAS history I missed. I think businesswise, those were actually two good decisions, though I would not mind having F on SAS. But I guess it would be a very empty cabin except for upgrades, award tickets, the royal families, and possibly some politicians. I can actually see where he is coming from with that remark, don't spend too most time trying to make sure every decision is perfect. You'll loose out that way.

And sorry for staying OT :-)

Arrived on JK037 yesterday 21.58, pretty lucky.

Sad with Spanair, liked their comfort option. Crew was always great.

Wau! Close call.

Sad? Well, the deroute has been on for some time. In 2010 Spanair had 35 % delayed flights on arrival, only Iberia was worse.

But in the late 1990s/early 2000s Spanair was among my favorite airlines. Had quite a lot of C-class flying Scandinavia-Spain, and their C-services was even better than SAS' at that time.

But I will miss a *A possibility for domestic Spain.

But who will fill the gap at BCN then?

But who will fill the gap at BCN then?

http://www.businessweek.com/news/2012-01-30/vueling-jumps-after-rival-spanair-halts-operations-madrid-mover.html
Jan. 30 (Bloomberg) -- Vueling Airlines SA, a Spanish low- cost carrier, surged the most in more than three years after competitor Spanair SA ceased operations as Qatar Airways Ltd. withdrew from a bid and the regional government halted funding.



Vueling to fly to 23 new destinations from Barcelona Airport after increasing passenger numbers by 11.6% in 2011
Barcelona (ACN).- The Catalan airline Vueling intends to consolidate Barcelona El Prat as a “true hub” for intercontinental flights. On Thursday morning, Vueling announced that it will invest €325 million this summer by opening 23 new routes from Barcelona Airport
http://www.catalannewsagency.com/news/business/vueling-fly-23-new-destinations-barcelona-airport-after-increasing-passenger-numbers-1[/QUOTE]

But who will fill the gap at BCN then?

Vueling Airlines.

Vueling up 25% and SK fell 10%

Vueling up 25% and SK fell 10%

Another low-cost carrier becoming dominiant?

Can we expect any initiatives from Air Europa or Iberia? This should be a huge opportunity...

Vueling is a low cost carrier, has a viking feel to its name. Now will this be the new Star member??

Vueling is a low cost carrier, has a viking feel to its name.

Indeed, although I would assume that "Vueling" is an amalgation of spanish "Vuelo" (flight, flying) and the english verbal noun suffix "-ing" (as in Flying).

And KF stopped the HEL-BCN route counting on the codeshare with JK. KF doesn't even have the range for the route with their current planes anymore. I bet it would be a hit-route in the summer.

Vueling is a low cost carrier, has a viking feel to its name. Now will this be the new Star member??


Not very likely since Iberia owns 49% :p
Vueling is to Iberia what Germanwings is to LH.
Vueling code-share with IB.
You earn IB Avios points with Vueling, which you can transfer to a BA
account if you want.

they are not loosing any time


Vueling has gone one step further and operates to Copenhagen and Stockholm from Barcelona today, Monday 30 January, and on Friday 3 February, even though these two routes are not scheduled to start full-time until 25 March


Spanair collapse good for the routes of Vueling, Air Europa and Iberia, bad for Star Alliance
http://www.anna.aero/2012/01/30/spanair-collapse-good-for-the-routes-of-vueling-air-europa-and-iberia-bad-for-star-alliance/

http://www.anna.aero/2012/01/30/spanair-collapse-good-for-the-routes-of-vueling-air-europa-and-iberia-bad-for-star-alliance/

Great link ^

they are not loosing any time


Vueling has gone one step further and operates to Copenhagen and Stockholm from Barcelona today, Monday 30 January, and on Friday 3 February, even though these two routes are not scheduled to start full-time until 25 March

The morning Barcelona's great opera house, the Liceo, was gutted by fire, Spanish soprano Montserrat Caballe--nowadays as famous for blatant media gestures as she once was for engorged tone, hyper-attenuated phrasing, relentless pianissimi and eccentric professional demeanor--arrived with a television crew, stood in the smoking rubble and sang "The Song of the Birds," the most popular of all Catalan folk songs and the very one with which Victoria de los Angeles had closed the 1992 Olympics. Reached for comment, De los Angeles snipped to the Times of London, " 'The Song of the Birds.' Well, there lies the poor dead thing, and already the vultures are beginning to circle overhead."

The undertow: Hungarian Malev declares bankrupt this morning!

Another low-cost carrier becoming dominiant?



For now probable yes, but since FR entered BCN El Prat some 2 years ago, they are the fastest growing carrier there... IMHO in 5 years FR will be the dominant carrier at BCN Airport...

For now probable yes, but since FR entered BCN El Prat some 2 years ago, they are the fastest growing carrier there... IMHO in 5 years FR will be the dominant carrier at BCN Airport...

5 YEARS eh? not anyone is even able to preditct with certainty what will happen in 5 months.