SAS — Regulatory Filings 2017

Feb 1, 2017

SAS complements its production with a new air operator certificate (AOC) and bases outside Scandinavia

SAS complements its production with a new air operator certificate (AOC) and bases outside Scandinavia

SAS's strategy is to focus on those customers who travel frequently to, from and

within Scandinavia. SAS continuously develops its offering and network to meet

this customer group's needs. The air travel market in Europe is experiencing

intense price pressure and rising demand for leisure travel. To secure the

company's long-term competitiveness and to take an active role in the growing

leisure market, SAS is now taking a further step to reduce the cost differential

to newly established competitors.

If SAS is to secure the long-term profitability of key traffic flows and

actively participate in the growing leisure market, SAS must have the same

preconditions as other market participants. Therefore, SAS has decided to

establish a new AOC in Ireland with operational bases in London and Spain. The

aim is for the new operations to be up and running from winter 2017/2018,

providing a smaller number of departures as a complement to SAS's existing

production.

"In line with SAS's strategy of focusing on those customers who travel

frequently to, from and within Scandinavia, the majority of SAS's airline

operations will continue to be based in Scandinavia moving forward. The

establishment of new bases means we can complement our Scandinavian production

and, in time, build an even broader network with a superior schedule to the

benefit of our customers," says Rickard Gustafson, SAS President and CEO.

The aircraft based in London and Spain will have the same customer offering and

appearance as other airline operations at SAS and with corresponding

requirements in terms of safety and standards.

At the start, smaller start-up costs for the new AOC and new bases are expected

to impact earnings. Initially, the financial effects from operations at these

bases will be small, but will gradually increase as operations grow.

In parallel with establishing the new AOC, SAS has planned further structural

measures for its operations, in line with those announced in the 2015/2016 year

-end report.

For further information, please contact:

SAS Press Office +46 (0)8 797 29 44

Björn Tibell, Head of Investor Relations, +46 (0)70 997 1437

This information is information that SAS AB is obliged to make public pursuant

to the EU Market Abuse Regulation. The information was submitted for

publication, through the agency of the contact person set out above, at 08.30

CET on 1 February 2017.