The airline was nervous about new entrants in these markets, particularly about Ryanair and EasyJet. The airline was thereby only a model employed for specific providers. No reductions were due to this fact granted from SAS Ground Providers or exterior ground handling suppliers. As an illustration, Snowflake incurred the same ground handling prices as Scandinavian Airlines. Snowflake was organized to change into an internal buyer throughout the group, for example purchasing ground companies from SAS Floor Services. The Snowflake business unit employed solely 5 folks. Snowflake’s business model was not the same as that of Scandinavian Airlines – more tips here – . Snowflake incurred the identical overhead costs as Scandinavian; the lack of a transparent separation between the airlines at an operational stage meant that Snowflake by no means succeeded in decreasing unit costs under that of Scandinavian Airlines. At the identical time two more aircraft, 156-seat McDonnell Douglas MD-82s, have been introduced to the Snowflake fleet. Snowflake served a complete 28 destinations from its bases at Stockholm Arlanda Airport and Copenhagen Airport. Snowflake would proceed to exist as a model name for discount tickets to European locations. A key part to the operations was that the Snowflake services would have the ability to function at a decrease cost than the main airline. The primary providers were from Stockholm to Alicante, Athens, Barcelona, Bologna, Budapest, Dublin, Istanbul, Málaga, Nice, Prague and Rome.

From February Snowflake launched services from Stockholm to Bilbao and Olbia.

From Copenhagen the airline’s first flights were to Alicante, Athens, Bologna, Lisbon, Málaga, Palma de Mallorca, Pristina and Sarajevo. From Stockholm companies had been launched to Ankara, Inverness, Lisbon, Palma de Mallorca, Split, Skope and Valletta. From February Snowflake launched services from Stockholm to Bilbao and Olbia. In November Snowflake announced that it might finish providers to Dublin and Barcelona, citing low profitability. Snowflake then introduced three new destinations from Stockholm from the start of the winter program in October: Lyon, Beograd and Beirut. A further four destinations have been reduce with the winter program. Lastly, operating only four aircraft was too small a fleet to realize the necessary economy of scale. The idea was launched using four Boeing 737-800 aircraft. Four Boeing 737-800 had been transferred to the new airline and painted in a brand new livery. Most flights had a restricted frequency, usually one to four times per week. Commonplace fare included one piece of checked-in luggage. A brand new fare scheme was launched from 1 October, whereby there have been eight worth levels, ranging from €58 to €228.

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As part of the program, the corporate’s administration, in cooperation with McKinsey & Firm devised a scheme to better target the leisure market. The corporate acknowledged that they aimed to create a low-cost airline which might deal with the leisure holiday market and on Mediterranean locations. The latter two had been primarily aimed toward expatriates. From March 2004 the two 737s in Copenhagen were changed with two McDonnell Douglas MD-82. From March 2004 two 737 aircraft had been replaced with two McDonnell Douglas MD-82s. Two were stationed at Stockholm Arlanda Airport and two at Copenhagen Airport. With two flights each per week, this resulted in a very low fleet utilization fee. Clients could redeem miles earned by means of SAS’ loyalty program Eurobonus, but miles couldn’t be earned on flights with Snowflake. From Copenhagen the airline started flights to Ankara, Beirut, Skopje, Cut up and Valletta. Scandinavian Airlines started to serving Dublin itself. All aircraft have been owned and operated by Scandinavian Airlines, however retained a particular livery with a lemon-colored vertical stabilizer and otherwise white physique.

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The aircraft operated with Scandinavian Airlines’ aircraft, crew and codes. To begin with it operated only a single sort of aircraft. They’d single-class seating in a more dense configuration than in SAS’ conventional aircraft. SAS hoped that the new airline would goal a unique market than Scandinavian Airlines and that the latter might as a substitute give attention to the enterprise. Owned by the SAS Group, it was organized as a enterprise unit inside Scandinavian Airlines, operating as a virtual airline using their crew and aircraft. This included several well-liked tourist destinations, corresponding to London and Paris, which additionally attracted a big share of enterprise travelers. It mainly served Mediterranean holiday destinations, in addition to locations in style with expatriates. SAS chose not to launch the service in Norway. All of the aircraft were registered in Norway. Snowflake was capable of keep away from a lot of the prices related to operating a network system. Snowflake had originally had success with their expatriate routes, but from 2004 passenger numbers fluctuated significantly on these routes. Braconier, Fredrik (6 June 2004). “Katastrofsiffror tvingar SAS att banta lågprisflyg”. Grensund, Peter (18 August 2004). “SAS lägger ner sitt lågprisbolag”. In May 2004 the load issue drop to forty p.c. The load factor elevated to eighty percent during the summer season months. The airline had a number of in-flight meals, food and beverages for sale.