Sas: Bangkok - Singapore

[singa-traz]

From Travel Agent:

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Dear Travel Partner,

Increased competition from new entrants namely low cost carriers, overcapacity and escalating fuel costs have all posed a tremendous challenge to the profitability of airlines worldwide. SAS is no exception.

All these factors have forced SAS to continually improve the cost base and evaluate operations. Globally, SAS has succeeded in many areas, but this is an ongoing process and we have to find new, smarter and more cost-efficient ways of conducting our business. One way of doing this is by utilizing and developing partnerships with our STAR Alliance partners as well as evaluate where and when we will perform our businesses.

With effect from 26 March 2006, we will endorse a code share agreement with SWISS on the Bangkok/Singapore/Bangkok route.

This means that SAS will cease our own operation between Bangkok and Singapore, in favour of the code share agreement with SWISS, but will maintain the operation between Bangkok and Copenhagen.

We are currently working on the details with SWISS to ensure the best possible service for our customers in the Singapore market. ....

The effect of the low cost carriers and overcapacity on the Singapore/Bangkok route have put enormous pressure on yields, making it difficult to maintain our operation in its present form.

I am pleased to say that SAS will maintain its presence in the Singapore market with the current sales office.....

If you are looking forward to the introduction of our new Business Class seats, On Line TV and Video on Demand, I am pleased to confirm that they are on schedule i.e. they will be ready by the end of this month.

I hope for your continuous support and look forward to a mutually rewarding working relationship.

Scandinavian Airlines System