view

This is actually very well played by SAS, they are moving to where the market is today and will generate higher revenues (prices are not going down in reality) but at the same time ensuring frequent flyers enjoy their existing benefits and thereby not alienating them. Much better than what Lufthansa Group has introduced with no elite benefits. Well done SK ^

helosc

But they'll alienate their frequent flyers when the point earnings on the Go-Light drop.

fassy

Even lower? Lower than 315 per segment? I think they won't adjust the point earnings (for now...)

UltraRant

LH gives 125 (or 157 with bonus) for the lowest segments. AF gives 0 for the lowest segments. Keep your fingers crossed no one from SK reads this and gets funny thoughts.

view

They are not changing the earnings when Light fares are introduced. What future devaluations may bring, thats another story of course.

Jainzar

Let's see if that works out for them. At least it is better managed than at LH with their direct "get less for the same money" message.

helosc

No, they are not changing the point earnings FOR NOW.

GUWonder

Indeed. And for now I'll take what I can before it goes down.

view

Do you hear the violins playing already?

GUWonder

They've played the same song before about changing mileage/points earning, so I expect it to change again. And then one day SAS will be no more.

UltraRant

Unfortunately, as long as SAS is half state-owned, they can basically do whatever they want... even if they're on the verge of bankruptcy, SAS probably will be saved with some state loans or guarantees. Something among the lines of Norway not being part of EU, the key value it has for Scandinavian transport, et cetera.

SK2751

I am pretty sure the prices for HBO will stabilize at the current cheapest fares with luggage, the earnings will go down within 12 months, and eventually we will loose the free baggage allowance for status pax. I expect that non SK golds are first to slash, and then not a long after also EB*G. This way they will have an extra perk for EBD. But by that time I will no longer care to be EBD. They consistently educate me to fly by cheapest fares. And I am listening ...

UltraRant

I share your vision of the future, be it a dark and unattractive one... I'm seriously wondering what the added value of bonus programs becomes. At some point it becomes easier to just quit a few hundred jobs and lower all prices by 10% than to uphold some 'loyalty' program that basically means a smack in the face of loyal customers...

I probably will remain Diamond as work still wants me to fly with them. For all private travel, the competition will probably in 99% of all cases be more attractive to fly with.

oliver2002

And the HBO fares will be made available to all European destinations, not just the DY routes.

raldat

Yep, same here. This is the one part of the SAS strategy I just don't get. Back to basic market positioning from Uni with the like of Michael Porter who suggested you had to be a price leader or a differentiator. You cant be stuck in the middle. SAS are doing all they can not to differentiate, i.e they are adopting all the budget airline tools such as no baggage fares, no "free" meal or drink service, little value in loyalty programs etc, but they still remain more expensive. My recent family vacation was a case in point. Prior to recent points devaluation I would have always flown SAS (and always did) chasing the points and status. This time there was so little in it that price and schedule won out so it was Norwegian one way and SAS the other.

If you are going to compete on price alone you better darn well make sure your price is compelling.