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SAS

Crisis-stricken airline SAS records heavy losses

Troubled Scandinavian airline SAS, which has filed for bankruptcy in the United States, reported deeper losses in the fourth quarter on Wednesday.

Pictured is an SAS plane taking off.
SAS has recorded heavy losses, according to its latest figures. Pictured is an SAS flight taking off. Photo by Odd Andersen AFP

Net losses amounted to more than 1.2 billion Swedish kronor ($117 million) in the August-October period, compared to a loss of 744 million kronor a year earlier, the company said in a statement.

“As with previous quarters in 2022, the currencies (foreign exchange) and jet-fuel price have brought strong headwinds for our business,” said SAS chief executive Anko van der Werff.

The airline, however, saw the “highest number” of passengers since the beginning of the Covid pandemic, with healthy demand in the summer, van der
Werff said.

The airline, which cut 5,000 jobs in 2020, is preparing for “substantial recruitments and rehirings” to meet the expected increase in demand next
summer, he added.

SAS filed for Chapter 11 bankruptcy proceedings in the United States in July — a move allowing a company to restructure its debts under court
supervision.

Van der Werff said the airline expected to complete the court-supervised process during the second half of 2023.

Earlier this year, The airline posted a net loss of 1.84 billion kronor ($170 million) for the May-July period, compared to a loss of 1.33 billion kronor a year earlier.

Earnings were “severely affected” by the 15-day pilot strike between July 4th-19th, which led to the cancellation of some 4,000 flights affecting more than 380,000 passengers, the company said in a statement.

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TRAVEL NEWS

Why cross-country flights are more popular than trains in Norway 

Figures have revealed that routes between Oslo and Bergen and the capital and Trondheim are among the most flown in Europe, with around 20 departures a day in each direction. So why are Norwegians opting for flights over the train? 

Why cross-country flights are more popular than trains in Norway 

Flights between Oslo and Bergen and Trondheim and Oslo were the fourth and fifth busiest air routes in Europe last year, according to European data agency Eurostat. 

Around 44 daily flights between Oslo and Trondheim and 38 between Bergen and the capital took off last year, contributing to some 222,622 domestic flights in total in 2022. 

Research from the Norwegian University of Science and Technology (NTNU) found that Norwegians’ flying habits contributed to twice as many C02 emissions as Swedish, German or French air passengers.

Flights between Oslo, Bergen and Trondheim account for around 20 percent of emissions caused by domestic flights within Norway, public broadcaster NRK reports.

So why are Norwegians choosing to fly between cities rather than taking the train or other means of transport? 

Climate researcher Helene Muri from NTNU said that several factors explain why domestic flights are far more popular than trains. 

First of all, she told NRK that the cost of taking a long-distance train between cities in Europe is cheaper and faster than it is in Norway. 

“The average Norwegian often has enough to travel with to be able to take a weekend trip and take these perhaps unnecessary flights. Trains in Norway are quite expensive, so when flying is cheaper and faster, you understand that people choose it,” she told NRK. 

For example, a flight between Oslo and Bergen can be completed in under an hour, while the train between Bergen and Oslo can take six to eight hours to complete. Trains to Trondheim from the capital take a similar time too. 

In some cases, such as when travelling to Tromsø from further south in Norway, a flight may be the most practical option due to Norway’s geography. 

“For example, Oslo-Tromsø is a stretch where it is not easy to find alternative means of transport,” Muri explained. 

Another reason why planes may be more attractive than trains is due to the sheer number of flights compared to trains. Recently the number of trains between Oslo and Bergen has been cut due to a lack of demand, with there typically being around four departures per day. 

In comparison, there are flight departures just over once an hour between the two biggest cities in Norway, meaning finding a flight to fit around one’s plans and itinerary is much easier. 

The popularity of flying between cities in Norway comes despite train travel contributing 12.2 grams of C02 per passenger per kilometre to the 236 grams of C02 emitted by planes per traveller and kilometre

Muri said that to entice more travellers onto trains, journey speeds and onboard amenities would need to be improved. 

“The time it takes to take a train between cities in Norway has actually increased. It takes longer now than it did before. It’s a bit remarkable and takes things in a bit of a wrong direction,” she said. 

“Increased capacity, increased speed and the availability of stable broadband in the trains are measures that can help shift traffic from the air onto the railway network,” she added. 

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