HVORDAN LØFTE EN SLITEN ORGANISASJON I BEINTØFF KONKURRANSE? Rickard Gustafson, CEO SAS Group Årskonferansen Bergen 5+ Bergen, 17 November 2011

Transcription

1 HVORDAN LØFTE EN SLITEN ORGANISASJON I BEINTØFF KONKURRANSE? Rickard Gustafson, CEO SAS Group Årskonferansen Bergen 5+ Bergen, 17 November 2011

2 50% of our employees have been employed in SAS for more than 15 years Core SAS 2009 Core SAS Turnaround S Profit 08 Scandinavian Airlines Danmark Scandinavian Airlines Norge Scandinavian Airlines Sverige Scandinavian Airlines International SAS Ground Services SAS Technical Services SAS Ground Services SAS Technical Services 2

3 Through Core SAS, we have created a platform to build on - 23% unit cost reduction* -23% *) excl fuel 3

4 Creating a common starting point and vision Vision 2015? TODAY

5 N. & C. America S. America Europe Africa M. East Asia Australasia How to turn strategic idea into action 3. Action 2. Engagement 1. Understanding Insight Inspiration Initiatives Air travel is growing, primarily driven by leisure travel 4Excellence will advance us toward the vision and help us achieve our mission Commercial Excellence Further Developments New Developments Nordic pax development per segment Growth distribution by segment Pax millions, Percent (Abs. pax), CAGR (%) 100% = 44 million pax (10) Corporate Fleet Plan and Cabin Care Partner Strategy Strengthened Leisure Offering Increased Focus on Ancillary Revenues Corporate 32 Leisure Leisure 77 (34) Innovative and time saving Harmonization of product onground solutions concepts Key assumptions: SAS corporate pax share of travelers declined from 63% 2006 to 55% Adjusting for changes in route mix the decline in corporate intensity was ~6%. Assuming 75% of the decline in intensity is attributable to market share gains on leisure/ loss on corporate and 25% of intensity attributable to an underlying shift in corporate intensity in the market. Extrapolating this intensity trend (-1.1% CAGR) up to 2020 assuming equal trend for all segments (domestic; Europe; long-haul). Assuming Swedish travel pattern is representative for Nordic in general #1 for Nordic corporate travelers Take a significant position in leisure market CSI #1 SOURCE: IATA; PaxIS; Statistics Sweden

6 Customers in the Nordic region travel a great deal Millions Per capita Population Short haul pax Long-haul pax Nordic Central Europe British Isles France and Benelux Nordic = Denmark; Finland; Norway and Sweden 2 Central Europe = Germany; Austria and Switzerland 3 British Isles = United Kingdom and Ireland 4 Benelux = Belgium; Luxembourg and the Netherlands SOURCE: PaxIS 2009; Airports Council International; Global Insight-WMM 6

7 and preferably domestically and within Europe Short haul 1 share of total ASK; 2010 Short haul Long-haul Norwegian Aegean 97 SAS 70 LOT 50 Turkish 49 Austrian 47 Finnair 44 Alitalia 42 bmi 41 Iberia 38 SWISS 35 Lufthansa 31 AirFrance/KLM 21 British Airways Weighted average Defined as domestic and intra-european traffic SOURCE: Innovata via APGDAT 7

8 In most of our network, we compete with low cost carriers Competitor presence on share of SAS short haul revenues 1, April 2011 LCC Norwegian 60 Mega carriers Ryanair 15 Other network British Airways 8 Regional Easyjet 7 Cimber Malmö Aviation Air France Lufthansa Brussels Airlines SAS revenue exposure LCC: ~70% Mega carriers: 18% Other network: 6% Regional: 10% KLM 2 Air Berlin 2 Swiss 2 Finnair 2 1 Not mutually exclusive and thus does not need to sum up to 100% 8

9 Air travel is growing, primarily driven by leisure travel and short haul destinations Growth distribution by segment , Percent (abs. pax) Growth contribution by destination , Percent 100% = 44 million pax 23 (10) Corporate 100% = SEK 60 bn Domestic Middle East & Africa 2 Asia Americas Leisure 77 (34) Europe Middle East & Africa Europe Asia Domestic Americas 29% 71% Key assumptions: SAS corporate pax share of travelers declined from 63% 2006 to 55% Adjusting for changes in route mix the decline in corporate intensity was ~6%. Assuming 75% of the decline in intensity is attributable to market share gains on leisure/loss on corporate and 25% of intensity attributable to an underlying shift in corporate intensity in the market. Extrapolating this intensity trend (-1.1% CAGR) up to 2020 assuming equal trend for all segments (domestic; Europe; long-haul). Assuming Swedish travel pattern is representative for Nordic in general SOURCE: IATA; PaxIS; Statistics Sweden 9

10 The challenges are substantial but we have unique advantages to build on Europe s most punctual airline 2009, 2010 and year to date 2011 Capable and loyal employees Popular and award winning EuroBonus program 55% Attractive network and schedule Market leader in Nordic corporate travel Popular time saving solutions such as SMS Check-in and Fast Track 10

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12 4Excellence will advance us toward the vision and help us achieve our mission 12

13 4Excellence has come together and is steering us toward ambitious targets Owners Customers Society Employees Our target is to achieve sustainable profitability - SAS is to be number 1 The Nordic region s most valued airline by reaching new heights in customer satisfaction - Unit cost shall be reduced by 3-5% annually - Our employee satisfaction is to be in the Top Five in the entire Nordic transportation sector - We are to reduce our overall emissions by 20% to secure a sufficient return on investment 13

14 4Excellence comes together Commercial Excellence Sales Excellence Operational Excellence People Excellence SAS Operations goals Safety, Quality, Delivery, Employees, Cost Understand and comply with customer needs Continuous improvements Prevent Errors Smoothen out customer variances Standard - robust operations Work Visualize Balance the according tasks and workload takt time status Follow standards Respect the system Respect the individual - Strengthened leisure offering - Harmonization of product concepts - Fleet / Cabin Care - Sales performance - Loyalty concepts - Improved online sales - LEAN - Continuous cost efficiency - Optimization of Group network - Frontline leadership excellence - Performance Management - Communicatio n and Collaboration 14

15 Initiatives into action LEAN 15

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