//
you're reading...
Aeropolitics, Airline Management, Airline Mergers & Acquisitions, Commercial Airliners, State Owned Airlines

SUMMARY: The 2nd last multi-national owned airline left in the world, SAS Scandinavian Airlines, the state carrier of Sweden, Norway and Denmark since 1951, is about to lose Norway as its shareholder, as it is selling the last of its 9.88% of the airline (down from the original 14.3%). Multi government airlines don’t work, from Air Afrique, Gulf Air, MSA, East African Airways to LIAT, they served their purpose but now its time for owners to go their own way, state owned airlines are hard to run imagine 11? it is time for that business model to be put to rest.

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/

 

June 26, 2018 – Airwise

Norway has announced it will sell its remaining shares in flag carrier SAS Scandinavian Airlines.

 

The Norwegian Ministry of Trade and Industry on Tuesday launched the sale of its remaining 37.8 million shares, representing 9.88 percent of the airline.

 

Norway originally held a 14.3 percent stake in the flag carrier of Sweden, Norway and Denmark, but has already sold down part of its holding.

 

“The transaction confirms previous communication by the Government stating that the Norwegian state is not a long-term owner of SAS. The Parliament has renewed the authorization to sell shares several times, most recently in the 2018 national budget,” the Ministry said in a statement.

 

The airline was founded on 1 August 1946, when Svensk Interkontinental Lufttrafik AB (an airline owned by the Swedish Wallenberg family), Det Danske Luftfartselskab A/S, and Det Norske Luftfartselskap AS (the flag carriers of Denmark and Norway) formed a partnership to handle the intercontinental air traffic of these three Scandinavian countries.

 

Operations started on 17 September 1946.

 

In 1948 the Swedish flag carrier AB Aerotransport joined SAS and the companies coordinated European operations and finally merged to form the SAS Consortium in 1951. When established, the airline was divided between SAS Danmark (28.6%), SAS Norge (28.6%), and SAS Sverige (42.8%).

 

In June, 2001 the ownership was changed to 21.5 to Sweden, 14.3% to Norway and 14.3% to Denmark, which added up to 50.1% state ownership and the remaining 49.9% was public ownership.

 

 

The other remaining multi-national airline is struggling money losing LIAT in the Eastern Caribbean, with up to 11 governments having some ownership, but 92.78% is owned by Barbados (50.2%), Antigua & Barbuda (30.75%) and St. Vincent & the Grenadines (11.83%), remaining 7.22% is widely dispersed.

 

 

How 11 governments can agree on anything is beyond me, I remember the days of Air Afrique formed by 11 ex-French countries, and getting to any kind of agreement was hell, and it went bust in 2002.

 

 

Then there was Malaysia-Singapore Airlines (MSA) remember? it lasted from 1966-1972 and then they went their own way.

 

 

East African Airlines (EAA), 1946-1977, with Kenya, Uganda and Tanzania, each went there own way in 1972 after $120m in debt was incurred. Kenya Airways went on to grow, Uganda Airlines eventually failed, now being resurrected as Uganda Airlines II with 2 x A330-900, 4 x CRJ900 on order, while Air Tanzania has been a “walking dead” airline for 41 years, its now been rejuvenated with 3 x Q400’s and 2 x CS300’s and 1 x B787-8 on order.

 

 

Then there was Gulf Air, from 1974, it once had Bahrain, Qatar, Abu Dhabi and Dubai as 25% owners each, but one by one they bailed out to form their own airlines, Emirates (1985), Qatar Airways (2002), Etihad (Abu Dhabi 2005), and then late comer Oman Air left in 2007, now its 100% Bahraini, and improving finally.

 

 

Its bad enough with one government involved in the running of a national airline, its much worst to have 2 or 11? forget it, it just does not work, and LIAT’s future has to be doubt, I believe local island nations should for their own local regional airline and free themselves of LIAT and its culture of status quo, talking about change and never doing anything new that will improve the airline and its service to the people of the Eastern Caribbean.

Advertisements

About Aviation Doctor - Helping aviation companies to transform the present into a more profitable tomorrow

I am a Canadian and EU national with an MBA and 33+ years experience in aviation business development with 20 years overseas and work in 30+ countries. A former investment/merchant banker (mergers and acquisitions to corporate turnarounds). airline and OEM senior executive and past owner of 6 successful aviation companies in 3 countries (executive jet charter/management companies, aircraft sales, aircraft broker, airline/aerospace consulting to aircraft insurance). I have a very diverse aviation background with 75+ aviation companies (50+ airlines of all sizes, OEM's, airports, lessors, MRO to service providers) as consultant, executive management, business analyst and business development adviser. Excellent success track record in International Business Development. Most work with airlines is with new start-ups and restructuring of troubled carriers. I sold new business jets, turboprops and helicopters for Cessna, Raytheon, Gulfstream to Eurocopter as an ASR as well as undertaking sales and marketing of commercial aircraft for Boeing, de Havilland, Dornier, Saab and Beechcraft. Brokered everything from LET-410's to B747's and from piston PA31 to G550 business jets. I look beyond the headlines of the aviation news and analyze what the meaning and consequences of the new information really means. There is a story behind each headline that few go beyond. Picked the name Aviation Doctor, as much of my work has been with troubled companies or those that want and need to grow profitably. I fix problems in the business for a better tomorrow. You can reach me with comments or suggestions at: Tomas.Aviation@gmail.com I write a lot of Articles and Posts on LinkedIN: https://www.linkedin.com/in/tomas-chlumecky-3200a021/

Discussion

No comments yet.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: