SAS chief bails out as airline recovery takes off

The surprise resignation of ­Jörgen Lindegaard as chief executive of Scandinavia’s SAS offers something of a head scratcher.

The 58-year-old Dane will leave the company this autumn, having presided over five fraught years in the airline’s history. Lindegaard suggested the pressure of running SAS motivated his decision, and a spokesman for the company confirmed it was entirely the chief executive’s choice.

But only 11 days earlier Lindegaard purchased 2,500 SAS shares, worth roughly DKK192,500, to bring his holding in the company to 45,000 shares – which looks like a vote of confidence.

Even so, Lindegaard will be leaving SAS just as his efforts to slash costs and reposition the airline take hold, and while SAS should be riding the broader recovery in the aviation industry. More importantly, though, he leaves with much work yet to be done to overhaul SAS.

A well-regarded executive credited with turning Denmark’s GN Store Nord into a lean high-tech firm from a plodding and unfocused industrial conglomerate, Lindegaard was headhunted in 2001 to join SAS only to run up against the national interests that buffet the carrier. He was the first non-Swede appointed to the role, and many in Sweden weren’t shy in criticising the precedent.

Within six weeks of taking up the post, he then lost his deputy chief executive and the entire board to a price-fixing scandal that predated him. A second deputy resigned less than a year later, which press speculation put down to a personality clash.

All this shuffling in management unfortunately coincided with probably the worst ever downturn for the industry following the 11 September attacks in the US.

From almost day one, Lindegaard has had to implement successively larger cuts, at times pitting him against hostile unions and the interests of the company’s three largest shareholders: Sweden, Denmark and Norway. As recently as January, some pilots staged a wildcat strike in protest at changes in their contracts.

Lindegaard may have kept SAS from going under, but the steps taken haven’t been radical. There are a number of assets, including hotels, that could be sold off.

SAS runs several airlines – under different names and in some cases on competing routes – that could be merged. And more needs to be done to fend off the rising number of no-frills carriers in Europe.

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Dnata named GCC sales agentfor Irish airline Aer Lingus

Dubai: Dnata Agencies, the ticketing and reservation arm of the Emirates Group, has been appointed General Sales Agent (GSA) in the GCC for Irish airline Aer Lingus, which recently launched non-stop flights between Dubai and Dublin.

The airline’s GSA agreement with Dnata for passenger sales representation covers the UAE, Qatar, Oman, Bahrain, Kuwait and Saudi Arabia.

Aer Lingus operates three flights a week from to Dublin to Dubai, with an Airbus A330-200. It expects to carry more than 70,000 passengers on the route in its first year, and has plans to increase the service to a daily frequency.

Iain Andrew, Senior Vice President, Dnata Agencies, said: “We are delighted that our experience and expertise in the GCC countries will support Aer Lingus in developing its business on this route, and its presence in the region.”

Cindy Cattigan, Manager Middle East and Offline Sales, Aer Lingus, said: “This new route is an exciting and significant development for Aer Lingus, as Dubai is our first long-haul destination outside the US.”

Aer Lingus, a member of the One World airline alliance, offers onward connections from Dublin to destinations in the US and Europe. To facilitate prospective travellers with visa requirements, a visa issuing facility has opened in the Enterprise Ireland office at the Crowne Plaza Hotel in Dubai.

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Cathay Pacific named “Airline Of The Year 2006″ by OAG

Cathay Pacific Airways has been named “Airline of the Year 2006″ by global travel and transport information company OAG (Official Airline Guide) at its prestigious 24th annual awards ceremony in London earlier this week.

According to a press release from Cathay Pacific on Saturday, Cathay Pacific was also voted “Best Airline Based in Asia” and ” Best Transpacific Airline” in OAG’s awards based on its poll of business travelers.

The awards are among the most valued and respected of in the industry, “representing the views of the most frequent travelers,” OAG said, adding “Independent and unbiased, the awards recognize airlines’ ability to deliver the promises made by the marketing and advertising departments. It is for this reason that the OAG Airline of the Year Awards are held in such high esteem.”

OAG Chairman Eddie Bell said, “Congratulations to Cathay Pacific for delivering excellence, both in the air and on the ground. The awards are public affirmation of both the product and service Cathay Pacific delivers. Not simply a snapshot taken on a particular day, they reflect the airline’s overall performance, throughout the year.”

Cathay Pacific Chief Executive Philip Chen said, “As the airline of Hong Kong, we are honored to be presented with this award and owe much to the can-do spirit of the Hong Kong people which drives everyone in Cathay Pacific to always do better.”

Cathay Pacific beat off competition from more than 40 airlines nominated in 16 regional and global categories.

The OAG “Airline of the Year 2006″ award is the fourth consecutive Airline of the Year accolade won by Cathay Pacific in the past two years. It was named “Airline of the Year 2005″ in the world’s biggest passengers poll conducted by Skytrax, last October.

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