SAS Chief Gets Union Backing

. October 14, 2008

AUGUST 17, 2007. Four of Denmark's major unions have backed SAS's new strategic plans tfor the company. In a letter to SAS President and CEO Mats Jansson, four Danish local trade union chairmen, representing their organizations (CAU, DPF, LFF and LH), have declared their satisfaction over the fact that a clear vision for the business has now been presented and that committed and motivated employees are a key prerequisite in efforts to build up confidence between SAS and SAS customers.

The unions also explain that they are willing in an active and positive spirit to work for a total no-strike situation after the agreements have been concluded for 2007 and during the time they are effective.

The chairmen of the unions that organize SAS employees within SAS Ground Services and SAS Technical Service in Denmark have also agreed to the content of the letter.

A prerequisite for achieving the goals established within SAS Strategy 2001, which was launched in June, is to achieve a cultural change and a new cooperation model within the SAS Group.

"I welcome the letter as an 'outstretched hand.' It is a strong initiative and the beginning of a cultural breakthrough in the company and that will result in greater stability within SAS," says Mats Jansson, President and CEO. "This is a first step and a breakthrough towards a new cooperation model between SAS and our trade union organizations in Denmark.

"SAS's livelihood depends on satisfied customers and as our first priority we are prepared to help rebuild our customers' trust in and satisfaction with SAS," write the unions in their letter. "With the right attitude and willingness to cooperate from both sides, we are convinced about, and we dare to proceed into, a time in which we have an SAS without strikes."

Consequently, the conditions and the realities have changed in relation to an earlier decision made this year that SAS traffic between Copenhagen and Oslo as well as Copenhagen and Stockholm would be flown solely by SAS's Swedish and Norwegian companies.

As a result of the increased stability for our customers due to this initiative, it is natural and logical for SAS to revise its earlier decision, which now means a traffic program between Copenhagen and Oslo as well as Copenhagen and Stockholm with a relatively balanced distribution of production (aircraft and crews) from SAS Sweden, Norway and Denmark.

As a result of the revised decision, the Group achieves a production model that is a favorable combination of customer needs and efficient production planning.

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