SAS to launch two new subsidiaries

SAS Scandinavian Airlines (SK, Copenhagen Kastrup) is planning to launch two new subsidiaries based out of Copenhagen Kastrup, SAS Connect and SAS Link, to bypass costly collective labour agreements at the mainline unit, Norwegian daily Dagens Næringsliv has reported citing union communications.

Chief Operating Officer Simon Pauck Hansen reportedly told unions that the new entities would launch in 2022. Each of them will have its own Air Operator’s Certificate, and eventually, they will expand to cover all three SAS bases – Copenhagen, Stockholm Arlanda, and Oslo Gardermoen. While SAS does not plan to liquidate the mainline unit, all future growth in terms of manpower is expected to occur through the two new units.

In March 2021, SAS reached a new one-year collective labour agreement with its pilots union involving all three of its home markets. Despite agreeing to the pilots’ terms, the carrier then said it was disappointed as the revised terms did not provide sufficient long-term cost-savings.

Besides the Scandinavian mainline, SAS also owns SAS Scandinavian Airlines Ireland with a fleet of six A320-200Ns. It is also reportedly considering setting up a new unit for the operation of in-house regional aircraft, starting with the tentatively ordered E195s. It is not clear whether one of the proposed new units will operate the Embraer jets.

SAS did not respond to ch-aviation’s request for comment.