SAS Finalize Cabin Union Agreement

4th Jul 2003

SAS has reached agreement with the Norwegian cabin unions regarding
collective agreements for 2003 and has thereby reached agreement with
all cabin unions in Scandinavia.

The agreements, which are a requirement for the complete implementation
of Plan C, include the possibility of increasing productivity by about
40 percent, from 530 block hours to 750 block hours per cabin employee,
as well as a wage freeze during 2003. The rules regarding 3-2-2 crewing
on Scandinavian Airlines` intercontinental routes will cease to apply
from March 1, 2004. A successive transition solution will be employed,
meaning that Scandinavian Airlines will man its intercontinental routes
on the basis of needs and prevailing production conditions.

“I am satisfied that, after long and often intensive negotiations, we
now have collective agreements with all of the cabin unions. The fact
that we have now finalized all of the agreements means that the cabin
employees will contribute to the necessary cost reductions within
Scandinavian Airlines,” says Sören Belin, Executive Vice President & COO
Scandinavian Airlines.

For further information, contact:
Sören Belin, Executive Vice President & COO Scandinavian Airlines,
+46 8 797 5004 or +46 705 97 50 24



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