Interview with Jeff Rebello, UK marketing manager, SAS

Scandinavian carrier SAS is restructuring and introducing new schemes for the UK trade as it attempts to claw its way towards profitability following the events of September 11.

The airline lost around 40% of its business class traffic after the terrorist attack on New York and in the first half of 2002 lost around £38 million. But the group, bolstered by newly acquired Scandinavian carriers Braathens and Spanair, expects to return a profit for the full year and SAS itself is planning to be profitable within the next two years.

Across the network, SAS has shed 3,500 jobs out of a total workforce of 28,000. It has also cut back its number of flights and reduced its aircraft fleet from 180 to 140.

“It has been a tough time as it has for all airlines,” SAS UK marketing manager Jeff Rebello (left) told TravelMole.

“Prior to September 11 there was a drop in business travellers with people trading down. Then September 11 exacerbated all that and we experienced a 40% drop off.

“It has now improved but it has not come back completely and there is a long way to go.

“We now have a more efficient network and we have cut back on around 11 destinations which were not working for us. There has been an impact on the UK scheduling, with changes to flights from Copenhagen to Manchester and Dublin.”

Rebello said SAS had introduced a new pricing structure for business class passengers which offers discounts of up to 40% for those who are prepared to be flexible.

The airline is also trying to win support among travel agents with by launching a EuroBonus promotion with experience company Red Letter Days.

“Agents who book customers on a return business trip from UK to Scandinavia will win a Red Letter Day experience, which could be flying in a hot air balloon or racing a car,” said Rebello.

“That is being rolled out now and will be ongoing in October and November.”

For business travellers a new Travel Pass is being piloted with three companies. They will be issued with a credit card style pass and only be invoiced for flights they take.

“In the past companies paid for flights and were then issued with paper refunds if they didn’t take them,” said Rebello. “But this new system does away with the need for all that.”

Travel agents will receive an undisclosed “finders fee” for signing up clients to the Travel Pass.

See previous TravelMole Interviews:
24-Sep-02 BITOA chief executive Richard Tobias
17-Sep-02 Alan Croft, deputy managing director, Bridge Travel Service
10-Sep-02: Noel Josephides, managing director, Sunvil Holidays
04-Sep-02: Geoffrey Lipman, World Tourism Organisation adviser
26-Aug-02: Jo Rzymowska, Walt Disney Parks and Resorts
20-Aug-02: TravelMole Interview: Peter Shanks, senior vice-president, Cunard Line
13-Aug-02: Tom Allen, The Theme Park People
05-Aug-02: Chris Kroeger, Sabre
30-Jul-02: Chris Mottershead, TUI UK
23-Jul-02: Seamus Conlon, Airtours Holidays
15-Jul-02: David Soskin, cheapflights.co.uk
09-Jul-02: Bruce Bishins, Genesis TDS
01-Jul-02: Howard Frost, Travelink
25-Jun-02: Rob Wortham, RWA
17-Jun-02: Paul Blackney, Worldspan
11-Jun-02: Mark Jones, Online Travel Corporation
27-May-02: Oliver Hillel, UNEP
20-May-02: Keith Webber, Telewest
13-May-02: Mark O’Brien, Rosenbluth International
07-May-02: Alicia Gardner, Sabre
29-Apr-02: Carolyn Ezzell, Delta Air Lines
23-Apr-02: John Davis, Pegasus Solutions
15-Apr-02: Gregory Hunt, ABTA Arbitration Scheme
09-Apr-02: Stuart Winter, Atinera
03-Apr-02: Roberto Da Re, Dolphin Dynamics
26-Mar-02: Arnaud Debuchy, Amadeus
19-Mar-02: Helen Baker, Lastminute.com
12-Mar-02: Pat Minogue, Galileo
07-Mar-02: Jon Hart, MyTravel
28-Feb-02: Lawrence Hunt, Rapid Travel Solutions