SAS — M&A Activity 2015

Oct 22, 2015

SAS transfers operations at line stations in Norway to Widerøe

SAS transfers operations at line stations in Norway to Widerøe

In line with the letter of intent signed in June 2015, SAS and Widerøe have

agreed to transfer the operations at all of SAS Ground Handling's line stations

in Norway to Widerøe Ground Handling (Widerøe).

SAS Ground Handling's operations at 14 line stations in Norway will be

transferred to Widerøe on February 1. The transfer corresponds to approximately

850 full-time positions and the takeover of existing agreements for equipment

and premises, as well as handling contracts. The transaction is being conducted

as an operations transfer, meaning that the transaction in itself will have no

significant impact on SAS' earnings. Following the transfer, SAS will purchase

ground services from Widerøe Ground Handling as an external service and the

parties have entered into a five-year contract for these services.

"The transfer of the operations at the line stations in Norway to Widerøe is in

line with our strategy of focusing on flight operations, while at the same time

reducing the company's fixed costs. In Widerøe, we have a high-quality and

reliable supplier that will ensure a smooth outsourcing process for our

employees. We look forward to continuing to work with Widerøe and together

developing our ground product for the good of our customers," says Rickard

Gustafson, SAS President and CEO.

Widerøe already has ground operations at a further 28 airports in Norway that

support Widerøe's regional routes.

"We look forward to taking over SAS Ground Handling's operations at the line

stations, which will complement our existing ground operations and provide us

with more opportunities to further develop the product. SAS and Widerøe already

have a close and successful cooperation relating to Widerøe's regional flight

operations and we look forward to extending this to ground services," says Stein

Nilsen at Widerøe.

Through this transfer, Widerøe also takes over the external contracts that SAS

has at a number of line stations in Norway.

For further information, please contact:

SAS Press Service, tel +46 8 797 2944