Scandinavian Airlines (SAS) has been undergoing some major changes in recent times, following its restructuring. The airline transitioned from Star Alliance to Sky Team, got an investment from Air France-KLM, and is also hoping to become a more globally competitive airline, increasingly focusing on its Copenhagen hub.
In recent times, we’ve seen the airline greatly invest in its fleet. A year ago, the airline placed an order for up to 50 Embraer E195-E2s, for regional fleet renewal. Now, a year later, the airline has placed an order for up to 40 Airbus A330s, for long haul fleet renewal. However, interestingly, this order isn’t entirely for new planes, and it’ll take some time for those new aircraft to be delivered.
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SAS announces “largest investment in company’s history”
SAS has today announced the largest investment in the company’s history, marking a significant step in the airline’s long term ambition to strengthen connectivity between Scandinavia and the world. This includes an order for up to 40 Airbus wide body aircraft.
Interestingly, the airline is both ordering new A330-900neos, and also acquiring some used A330-300s, to enable near term growth, ahead of the arrival of the new fleet. Specifically:
- SAS has placed a firm order for 18 Airbus A330-900neos, with options for 10 more
- SAS plans to acquire 12 Airbus A330-300s, which are used aircraft, given that they’re no longer in production
The new A330neos are only expected to be delivered as of the early 2030s, so those are still a ways off. It’s not clear yet to me where the A330-300s are being sourced from or exactly when they’ll be delivered, but I imagine we’ll find out soon.
For those not familiar, the A330neo is the latest generation version of the A330, featuring improved range and fuel efficiency. The A330-900neo is the larger of the two variants (with the other being the unpopular A330-800neo). The plane has a range of 7,350 nautical miles, plus a capacity for 287 passengers in a standard three cabin configuration, so it’s a great fit for SAS.
Here’s how SAS CEO Anko van der Werff describes these plans:
“For 80 years, SAS has connected Scandinavia with the world and the world with Scandinavia. Today, we are investing in the next chapter of our story.”
“This is the largest investment in our company’s history and a clear signal of our confidence in the future. At the same time, the analysis we are presenting today demonstrates the broader value of international access. Strong global links create opportunities for businesses, support jobs, attract investment, and strengthen competitiveness across our region.”
SAS has big global growth plans as part of Air France-KLM
SAS is developing a sharper strategy at the moment, as the airline is increasingly focusing on its Copenhagen (CPH) hub, rather than the previous three hub strategy of also splitting long haul operations with Oslo (OSL) and Stockholm (ARN). From a passenger flow perspective, that makes a lot of sense.
I also think it’s interesting to note that Air France-KLM has invested in SAS, and plans to up its stake in the airline over time. It sure seems like the company is also pursuing a three hub strategy, with Copenhagen complementing Amsterdam (AMS) and Paris (CDG).
For context, SAS’ all-Airbus long haul fleet currently consists of six A350-900s, eight A330-300s, and three A321LRs. So the firm order for 18 A330neos is basically the size of the entire current long haul fleet combined, and I imagine existing planes won’t be retired any time soon either.
What remains to be seen is what exactly the strategy is in terms of how long existing aircraft will stick around. Is the plan to eventually make SAS’ long haul fleet consist exclusively of A330neos? How long will the existing A330s stick around? What about the A350s and A321LRs?
This fleet announcement coincided with a presentation on a new analysis of the potential socio-economic impact of significant expansion in Copenhagen. The analysis showed that if SAS’ planned growth is realized, it would support an additional 25,000 jobs and contribute DKK 25 billion (3.8 billion USD) to GDP by 2030.
So there are still a lot more questions than answers here, but either way, it’s nice to see SAS developing some sort of a cohesive strategy, with a vision for how the airline could look as part of the Air France-KLM Group.
Bottom line
Scandinavian Airlines (SAS) has announced plans to acquire up to 40 Airbus A330s. This includes an order for up to 28 factory fresh A330-900neos (18 firm orders and 10 options), plus plans to acquire 12 used A330-300s. The A330-300s are described as supporting near term growth, given that the A330-900neos will only be delivered in the 2030s.
It’ll be very interesting to see how this all plays out. It seems like this represents a significant expansion for the carrier no matter what, though it remains to be seen just how much growth we’re talking about, based on how many existing planes stick around.
What do you make of SAS’ big wide body aircraft acquisition plans?
AF-KL needs a lower cost hub in Europe's North-East to compete in lower yield Eastern Europe TATL markets. Especially with the deepening Air Baltic-LHG cooperation. Those sub-par planes play in this strategy. This is also a way to hedge against AMS restrictions.
Longer term East Asia is also interesting when/if Russia reopen.
If they can get their hands on TAP they will get their Southwestern low cost hub (when LIS relocates to Alcochete)...
AF-KL needs a lower cost hub in Europe's North-East to compete in lower yield Eastern Europe TATL markets. Especially with the deepening Air Baltic-LHG cooperation. Those sub-par planes play in this strategy. This is also a way to hedge against AMS restrictions.
Longer term East Asia is also interesting when/if Russia reopen.
If they can get their hands on TAP they will get their Southwestern low cost hub (when LIS relocates to Alcochete) and have a pretty good coverage against IAG and LHG. Leaving only Vienna/Istanbul unchecked as western and central Asia powerhouses.
How is CPH a lower cost hub than CDG and AMS?
It is not. It will be used as one by not being premium configured: using cheap planes that are cheaply configured, serving lower yield markets.
The premium powerhouse remains AF. And SAS and KLM will share the load to serve eastern Europe
I wish those orders were for A350s instead, but glad at least they're growing.
I'm curious to see what comes of their A359 fleet. Simplifying and reducing the gauge of their long-haul fleet seems like a smart move considering SAS' struggles over the years.
I was initially confused why AFKL would be interested in growing another Northern European hub but with AMS growth being constrained and KLM likely needing to focus more on serving local traffic going forward, having another connecting complex so geographically close makes a lot of sense.
I would be willing to give them a shot to fly to Europe, but those 45 minute connections in CPH scare me to death.
You definitely don't need to come. We're good on Americans, tak.
Also "good" on Russians, I assume... What other nationalities are on your not-wanted list?
Just go back to your credit card points and your freeway motel Fairfield. We're busy having six weeks of summer holidays here in our more productive society.
"You definitely don't need to come. We're good on Americans, tak."
Hmmm, sounding like you could use a bit of "freedom." Hope your basement's deep....
CPH needs an airside short-stay hotel, as both AMS and CDG already have.
They really don’t. Denmark is a tiny country. Center of Copenhagen is literally 15 minutes ride on the airport train. Been there done that in the summer of 2009. Overslept, and missed my flight.
I had read it was 18 339s, 12 options, and 10 used 333s, but the infr=ormation seems hard to nail.
This is what happens when you get purchased by AFKL, not LHG. All the governments that selled out to LHG and now see their airlines driven to the ground should take a note.
Ahhh yes the famously well functioning LHG, headed by LH which is the worst performing airline of said group and brilliant at rolling out products on time.
M or on
You agree with the guy and call him names lol
Super exciting! When does SAS attempt to join the Delta / AF / KLM / VA joint venture? Imagine that success with this volume of wide bodies will be very dependent on having that happen.
Don’t understand why they commit to that in the verge of being absorbed into AFKL group. Moreover when AFKL don’t have A330 plans and in the future they will need to align with AFKL strategy…
Probably the quickest widebody deliveries they can get at short notice. The 330neo hasn't been nearly as popular as the A350 or 787
Why?
They have shared ownership, but they're not the same airline, they don't have the same costs, they don't have the same hub-flows, and they don't have the same MRO.
So why would they need to have the same aircraft?
Curious to see which places SAS plans to serve with the planes from its plane-acquisition plans. SAS is already worried in ways about how its US routes are doing.
And with Russian airspace being off limits, expansion into East and Southeast Asia seems challenging, especially with A333s and A339s.
SAS' North-American network is very weak due to the lack of long-haul aircraft, so they have a lot of room to grow. When SAS announced SEA service last year, they were also studying MSP, but their fleet can't sustain both. It makes sense for them to fill out additional DL hubs like MSP and DTW, fill in missing DOW service and increase beyond 1x in major markets like JFK and LAX. Plug holes in the...
SAS' North-American network is very weak due to the lack of long-haul aircraft, so they have a lot of room to grow. When SAS announced SEA service last year, they were also studying MSP, but their fleet can't sustain both. It makes sense for them to fill out additional DL hubs like MSP and DTW, fill in missing DOW service and increase beyond 1x in major markets like JFK and LAX. Plug holes in the NA network, like MIA, DFW, IAH, YUL, YVR. They can also hop on the European airline trend of serving the bottomless pit of demand that is India.
Greta is going to be pissed
That stupid nut job is no longer relevant. She doesn’t even represent Scandinavian or Nordic people.
How… SASsy…
KLM will retire a330 when a350 comes this year
KLM may indeed have a ready buyer with an SAS which is slated to see an even bigger share of SAS controlled by AF-KL.