Scandinavian airline looking for a new figurehead

Gustafson in SAS has taken his hat and gone, to a different kind of business all together. 

He has been controversial in recent years, How he received significant bonuses after getting other employes to reduce their renumeration packages in recent crisis did not help SAS when pilots went on strike a couple of years ago. 

Maybe his greed got the better of him and he foresaw that for the coming years his performance bonuses would not mount up to much. Specially since most airline have negotiated multiyear CoVid19 reductions in the pay of staff and therefore will have problems restoring senior managment perks faster or significantly higher in this period.

His share options and other renumeration schemes is also probably solidly underwater after the refinancing SAS went through in 2020. Resulting in any financial loss by leaving would be minimized.  


What should SAS look for in their next leader. 

First someone who can him/herself show moderation and not only demand it from others. 

Somebody with airline experience and own ideas that can take a close look at every aspect of the company. And not only continue the retrenching and hiring in others to do core parts of being an airline but also willing to consider if some parts would be cheaper done if brought back inhouse. Remember most outsourcing add a cost layer of profit for whatever company takes it on. 

Consider if as an airline SAS should get more control over what would normally be called its regional network. How many like to book a SAS ticket and then be flown by someone else completely even inside Scandinavia.

Cutting down on overnighting costs for crew in larger high frequency airports that used to be bases. Sample Trondheim.

Rethinking wether ever larger planes is a good replacement for higher frequencies on trunk routes.

Consider if more direct routes out of the larger cities within Scandinavia would be better received than the Stockhom/Copenhagen/Oslo hub and spoke model. Other airlines like Wizz is coming into Scandinavia with direct international routes, and even if initial resistance, large parts of the market will go for single flight even if slightly less service. 

Increased flexibility in CoVid19 times in catering for the nervous. After all if a millionarire in Asia bought all seats on a plane to ensure social distancing, there certainly would be a market for a bit of it (like middle seat free for 50% extra price) in part of the plane on most routes. 

Further consentration in financial reports on freight numbers when passenger numbers are depressing. After all SAS has a substantial freight part and if its flying - flaunt it.


Will any of this come to fruition in the board's considerations. Not a chance. They where sad to see him go and will proably again go for somebody without any substantial industry experience because they see themselves as capable of handling any type of business. 

The sad truth is we will never know what the result would have been if they had gone for a different pick. Like most leaders of companies never get to know what the result would have been if they had taken the other road in any of their decisions. 


 

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