SAS EuroBonus - University Student

Hello, I am currently a student studying Aeronautical Engineering at Imperial College in London, UK. I am Swedish in origin and am interested in using SAS international as an example in a current Aircraft Systems Engineering report I am writing. The report will examine among other things the impact of high labour costs due to a restrictive welfare society on the ability to supply a competitive product in the deregulated world market. If any of you FT'ers out there could pass any contact information to me of someone who would be able to help with some background information on the subject I would be very glad. I've read about some posts by people that really seem to know their stuff, and if someone could help me it would be really great for me. The reason why I'm doing this is because most of my classmates will examine reliability of certain aircraft components and their impact on aircraft systems as a whole; I on the other hand would like to view it from the bigger picture in order to write something more interesting and hopefully more useful for myself. However, the major hurdle is getting together enough background information (cost estimates for crew esp.) to compare with for example other international carriers.

Thanks in advance!

fiddeR

National healthcare plans -- generally available in some "restrictive" form or another in the SAS home countries -- lowers SK's operating costs somewhat vis-a-vis US carriers.

I consider that one form of government subsidy.

You are going to have to compare per employee labor costs (salary plus benefits and other labor-related costs) and may find that those are actually lower for SAS than they are for some US carriers.

You are going to have to compare per employee labor costs (salary plus benefits and other labor-related costs) and may find that those are actually lower for SAS than they are for some US carriers.

Yes, the total cost for employment is probably competitive for Scandinavia compared to the US, but the situation may look different if you compare with certain asian carriers.

Yes, the total cost for employment is probably competitive for Scandinavia compared to the US, but the situation may look different if you compare with certain asian carriers.

Yes. Compare SAS to Biman. :D

National healthcare plans -- generally available in some "restrictive" form or another in the SAS home countries -- lowers SK's operating costs somewhat vis-a-vis US carriers.

I consider that one form of government subsidy.

You are going to have to compare per employee labor costs (salary plus benefits and other labor-related costs) and may find that those are actually lower for SAS than they are for some US carriers.

While we are government subsidies: One could also discuss the revolving door that exists for most US carriers in and out of chapter 11, where the US government in reality take over a significant portion of the carriers obligations as it relates to pensions - plus of course the billions of dollars the carries received post 9/11.

Back OT: You may want to consider contacting SAS directly for some inside info - it can not hurt to try

National healthcare plans -- generally available in some "restrictive" form or another in the SAS home countries -- lowers SK's operating costs somewhat vis-a-vis US carriers.

I consider that one form of government subsidy.

You are going to have to compare per employee labor costs (salary plus benefits and other labor-related costs) and may find that those are actually lower for SAS than they are for some US carriers.

this is mostly funded via an 37% (i think... but its a ballpark figure) social services tax. so if SK is paying 100SEK pr hour to an emplyee, their total cost is 137 SEK.

my guess its pretty much the same...

I've responded to "Chapter 11 as US government subsidy" concerns in other threads here on FT. In any event, Chapter 11 -- as more people became familiar with it the last couple of years in relation to aviation industry -- no longer exists in the specifics as it did at the time of those discussions.

A good source of information would be if you have acquaintances who work for consulting firms that have an aviation industry practice or to consult some investment bank research on the industry. The financial statements the operating carriers may be willing to supply the general public with may not be detailed enough to make good calculations.

Thanks a bunch for the quick replies! I have prior to this post already contacted SAS but am assuming I won't get much. My parents have old friends blah blah blah but I'm not sure I would want to prod that connection too much. On the other hand, I accept and appreciate the comments about US airlines, but in particular I am interested in SAS international's direct asian competition on the routes CPH-BKK, and CPH-PVG+PEK. Anyone with any knowledge about those routes in particular would really be a big help for me. I have dug up third party cost estimates for european airlines, (SAS as well naturally) but for asian carriers I'm really skating on thin ice. Thanks again, adios!

You might want to check into what Finnair has been doing in the past few years. As you might know they´ve opened many new routes into Asia. They are using Asian FAs as well. They say it´s because many customers are Asian and feel more comfortable with Asian cabin crews. But the true reason might be that they´re a lot cheaper. This same debate has been going on with SAS too. But Finnair has already done it for several years.

http://www.hs.fi/english/article/Union+says+Finnair+Asian+flight+attendants+still+u nderpaid/1135218478630