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Actions to handle the replacement of the Q400 fleet

October 29, 2007 09:25

The SAS Group Board of Directors yesterday decided to permanently remove its entire fleet of 27 Dash 8-400 (Q400) from service following 3 accidents involving the landing gear. The aircraft operates on Danish and Swedish domestic as well as on European routes. In addition, it is operated by Widerøe in Norway.

In total 27 aircraft of SAS Group fleet of 303 aircraft are affected, accounting for approx 5% of total aircraft seat capacity.

SAS Group will do everything possible to mitigate the negative consequences for the passengers. Short and medium term SAS will take the following actions to handle the replacement of the Q400 fleet (with estimated time frame)

1. Review of network and reallocation of aircraft
capacity within the SAS group (0-3 months)
2. External wet lease capacity (0-1 month)
3. External dry lease capacity (3-6 months)

In parallel, work has already been initiated how to replace the aircraft type long term. SAS expect to start to implement a long-term solution by second half of 2008.

An early estimate of the negative impact on the SAS Group result is around 300-400MSEK for the remaining part of the year. The estimate takes into account the above mentioned actions and lower seasonal demand in the coming months. It is based on revenue loss, fixed cost and negative feeder effects and comes in addition to the effects communicated earlier.

SAS Group is in dialog with Bombardier regarding possible solutions regarding the current situation for the Q400 fleet including compensation.

Due to the closed period in connection with the upcoming results, no more comments will be given by SAS at this point.

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