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SAS to sell BMI stake – 14 June 2007

SAS Scandinavian Airlines will sell its 20% stake in BMI and investments in other carriers to concentrate on its core market in northern Europe following a corporate restructure announced yesterday.


The carrier will move its headquarters and seek a deal with unions to cut industrial action as it seeks cost savings of more than £200 million.


Chief executive Mats Jansson said he would seek “a new cooperation model” with the unions.


“We have to abandon the strike culture that has long existed at SAS,” he said. “The airline market is changing rapidly and we want to be in the forefront.


“We will be scaling back the central administration and moving headquarters as soon as practicable.”


The carrier will sell its holdings in Spanish carrier Spanair and Air Greenland, as well as BMI, and review operations including SAS Ground Services (SGS) which provides check-in and other services at Heathrow Terminal 3.


Air Berlin immediately ruled itself out of a bid for Spanair, saying: “We have no interest.”


Lufthansa will be favourite to snap up the holding in BMI, in which it already has a 30% stake and an option to buy chairman Sir Michael Bishop’s 50% share.


SAS said talks with unions would begin immediately.

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