New structure and management team for the SAS Group

15th May 2002

The Board of Directors of SAS has today approved a new Group structure and has agreed to introduce a new control and management model for the SAS Group. The new organization is a natural result of the changes that have been implemented and aims to achieve improvements in results by making better use of the business opportunities open to each business unit and to allow joint resources to benefit the entire organization in a more efficient manner.

The Group structure that was introduced on May 20, 2001, an integrated airline group based on SAS Airline, has been modified in line with the acquisition of majority shareholdings in Braathens and Spanair. Through these acquisitions, the Group’s sales increased from SEK 50 billion to SEK 60-65 billion.

At the beginning of 2002, the business structure was adjusted and a group was created consisting of airlines and related operations. This development is complemented by today’s Board decision to release and form separate business units out of Scandinavian Ground Services, Scandinavian Technical Services and World sales with 7,300, 3,800 and 3,500 employees respectively. These units, which were previously integrated sections of SAS Airline, will combine with SAS Cargo to form the new Airline Support business area.

The SAS Group will thereby be operated within the framework of the following areas: SAS Airline, Subsidiary & Affiliated Airlines, Airline Support, Airline Related Businesses and Hotels.

The new Group management team will consist of the following areas of responsibility:


- President & CEO, SAS Group - Subsidiary & Affiliated Airlines and Hotels - Airline Support and Airline Related Businesses - Chief Financial Officer (CFO) - Corporate Administration & Support
“We will make greater use of the Group’s economies of scale and create a more distinct distribution of roles between the airlines within the Group. We will also become more efficient at developing other related operations,” says Jörgen Lindegaard, CEO of SAS.

“For SAS Airlines, this change is another step on the path in the goal-oriented change process, which is being driven by Marie Ehrling. A structure is being created that will generate new business opportunities for service units, as well as opening new possibilities for other Group companies.”

In conjunction with the organizational change that is now being implemented within the SAS Group, Marie Ehrling, Executive Vice President of the SAS Group and current head of SAS Airline, is to leave SAS at her own request.

“SAS Airline is now entering an entirely new phase,” says Marie Ehrling. “The organization of operations into four sections is a structural change that I have been encouraging for several years. An important milestone in the development of SAS Airline has now been reached. My current position is to be discontinued and, for me personally, it is a suitable time to seek new challenges outside SAS. I am strongly confident that SAS Airline will emerge form the crisis that arose in autumn 2001. A long-term process of change is under way in all areas within the airline: the traffic system, product and pricing concepts, distribution and control. The foundations have been laid for the modernization that is required to create a competitive SAS Airline.”

Jörgen Lindegaard, President and CEO of SAS:
“Marie Ehrling has done fantastic work at the SAS Group over many years. She has assumed a goal-oriented approach in developing SAS Airline and it is thanks to her that a great deal of the current process of change is being conducted rapidly and efficiently. She has thereby laid the foundation for the profitable and competitive operation of SAS Airline. Marie has been a huge asset for SAS. I respect, but deeply regret her decision to leave SAS.”

The new organization will apply as of July 1.



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