Scandinavian Airlines SWOT and PESTLE Analysis

Strength

1. Diversified portfolio with quality products and offerings: Backed by an extensive portfolio of products and services, SAS has been offering smooth flights to, from, and within Scandinavia, making it one of the leading Scandinavian airlines. SAS's primary business revolves around its Airline operations carried out by SAS Scandinavia, SAS Ireland, and regional production partners. A total of 30 million travelers flew with SAS, in FY2019. Its Cargo services are a notable air freight solution provider across Scandinavia, due to its world-class quality service and exceptional customer care. SAS Cargo’s services are based on the cargo capacity of the SAS network, enhanced by dedicated truck operations. In FY2019 SAS cargo accomplished 111 million kg of freight. At airports in Copenhagen, Oslo, Stockholm, Malmö and Gothenburg, SAS is a leading ground handling provider of passenger, cargo, and ramp services, with 298 thousand departures handled in 2019 for both SAS and other flights. Under Maintenance Production, SAS offers technical maintenance of aircraft and engines at six airports in Scandinavia. Moreover, EuroBonus symbolizes Scandinavia’s largest travel-related loyalty program, enabling a deep relationship with its customers. As of 2019 EuroBonus has over 6 million members and nearly 100 partners.

2. Selling biofuel to travelers as a sustainable strategy: In addition to the various SAS initiatives to reduce CO2 emissions, the Scandinavian airline acquainted the opportunity for its commuters to reduce their climate impact. From July 2019, SAS travelers can purchase biofuel to cover their journey, in addition to the biofuel SAS already buys. This will further reduce the climate impact of their air travel. Additionally, the move aims at sufficing the large quantities of Sustainable Aviation Fuel (SAF) needed at a competitive price. This contribution does not add to SAS profits instead all the funds are directly utilized for purchasing the biofuel. Besides offering an attractive network, timetable, and pricing, adding on travel extras, such as biofuel helps the company improve the customer offering throughout the travel chain. As of early 2020, The company has positioned itself to include up to 50% sustainable aviation fuel in SAS aircraft.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Swiftly increasing the volumes of biofuels to achieve sustainable aviation: There is an increasing trend of biofuel being used in the aviation industry. For the past 10 years, SAS has been rigorously working on various pursuits to encourage the development of sustainable aviation fuels like biofuels. In 2019 SAS sourced 455 tonnes of biofuel signifying an accession of 355 tonnes as opposed to 2018 and remain focused on promoting the commercialization of sustainable aviation fuel. SAS is also involved in several initiatives and projects to accelerate the large-scale commercial production of biofuel in Scandinavia in order to meet the quantities of SAF needed at competitive prices. In 2019 SAS collaborated with Swedavia and the research institute RISE to launch a common path towards extending the production of biofuels. Besides the company has also included the option for customers to buy biofuel with their ticket, eventually reducing environmental impact. This contribution does not add to SAS profits instead all the funds are directly utilized for purchasing the biofuel.

2. Progressing toward hybrid and fully electric aircraft: SAS has a vision of achieving true fossil-free aviation, backed by exceptional innovations and modern technologies. The Scandinavian Airline also aims at developing the next generation aircraft in large-scale commercial operations. In May 2019, SAS and Airbus endorsed a Memorandum of gaining pertinent knowledge on hybrid and electric aircraft eco-system and infrastructure requirements. The partnership aims at ascertaining the necessities for the next generation of more sustainable aircraft. The collaboration also includes an ambition to involve a renewable energy supplier to enable zero-emission operations. SAS is also piloting projects concerning electrical aircraft. The Nordic Network for Electric Aviation, launched in September 2019, is a good example of the SAS initiative to progress towards Electrical aircraft.

The remaining section under "Environmental" is available only in the 'Complete Report' on purchase.