Saving SAAB...Saving SAS

It has been a tiring start of the year for many involved parties in the gigantic task of saving first SAAB automobile and now saving SAS. For many small investors, the moments of anguish is even greater. It is not the intention just now to analyse what went wrong in the management of these blue chip companies and who did the worst damage that has led to the financial bleeding of both.

Today, Dagens Nyheter's editorial gave a pretty good analyses on the situation of SAS - the airline owned by the three Scandinavian countries. If one looks at the economies of these three owner-countries, one can only say that all three have handled well the financial crisis that nearly bankrupted the world economy. According to DN, the main problem of SAS lies in the composition of its major owners, the 30-plus unions sitting in the negotiation table and the difficulty of understanding just what, how and why decisions are made by whom among the major decisionmakers.

SAS has become a dinosaur that can hardly move in the tightly competitive aviation business. The service is bad if not lousy and for ordinary passengers expecting a modicum of comfort during travel time, SAS stands way back the other airlines in terms of service and competitive air ticket prices. Why is it so difficult to set standards of good service? What does it mean to be a Scandinavian airline as against an Asian airline?

SAS need saving, but how does one restructure an organisation that moves sluggishly? Where should the changes begin? What does the unions want? Until then, when such crucial management questions are answered then SAS is already doomed before it gets a new shot of billions in its arms#