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Scandinavian Airlines - Innovation and Growth During the Twentieth Century

When most airlines start out, it is usually a rough and difficult journey, but not for Scandinavian Airlines. The people that initially started this company were able to present passenger air carrier resources that are not usually available. Regardless of how they began, their business integrity and perseverance is what has sustained this company. Their ability to net profits very easily had to do with their marketing savvy, and their prominence in the airline industry. The spoils of business success go to those who have vision and are willing to take chances. The journey of Scandinavian Airlines will be examined next.rnrn42 Billion Swedish Krona, SEK, was the number of revenues reported by Scandinavian Air in the fiscal year 2006. In 2006 alone, they carried over 25 million domestic and international travelers. That statistic earned the company a place on the list of the top 10 in Europe and coming in at number nine. A large part of that success was due to smart mergers and acquisitions for SAS. The Star Alliance Group is an aviation consortium of which, SAS is a founding member. The innovative strategy of joining forces with many other airlines over the last half century has paid off in a number of ways for SAS. rnrnAnother brilliant business move for Scandinavian Airlines occurred in 1997. Scandinavian Airlines, plus United Airlines, Air Canada, Thai Airways and Lufthansa put together a network they called the Star Alliance.rnrnThis network of global airlines was part of a long term strategy that culminated in the formation of the alliance. Next, in 2001, there was a tremendous shake-up of the structure which caused SAS ownership to be broken up between public ownership of stocks and entitlement by three Scandinavian countries. The three countries that are entailed are Sweden, Norway and Denmark. However the businesses shareholdings of public stocks remain at 50%.rnrnSAS Braathens is the official name of the Norway component of Scandinavia Airlines. Once called Scandinavian Airlines Norge, this unit was part of the previous four. The SAS Norge was the result of a name change from Braathens to Norge after a merger with SAS Norway. This seemingly confusing name change was actually not that bad. The arrangement of this company in 2007 is still unified in regard to SAS Norwegian operations. Norway, for instance, still utilizes Scandinavian Airlines Norge to handle flight operations that are domestic in nature. International flights that actually begin in the country of Norway are handled by the SAS Norge. Scandinavia Airlines, being owned and operated by three different but adjacent countries can be challenging at times. Since it began, and to this day, this airline continues to operate in the same exact manner. Part of its overall tenacity, SAS continues to provide strength and diversity. The amount of business that they currently have allows them to perpetuate their success.

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