Scandinavian Airlines Seeking to Replace Grounded Q400 Fleet

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. Work has already been initiated on how to replace the aircraft type long term with a solution expected 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. This 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.

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

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