The Airline Solely Operated Point-to-Point Companies

The airline was thereby just a brand employed for explicit providers. Snowflake would proceed to exist as a brand name for discount tickets to European destinations. The Snowflake model was introduced on 19 March 2003 and providers commenced on 30 March. To avoid cannibalizing clients from Scandinavian Airlines, Snowflake only flew to destinations not served by the other part of the group. Snowflake was hit by a strike inside the SAS Group beginning on 1 February 2004 amongst floor handlers. Prospects could redeem miles earned via SAS’ loyalty program Eurobonus, but miles couldn’t be earned on flights with Snowflake. A further 4 locations have been cut with the winter program. Lastly, working solely 4 aircraft was too small a fleet to achieve the required economy of scale. To begin with it operated only a single sort of aircraft. The airline solely operated point-to-point providers, fairly than the network model used by Scandinavian Airline. Snowflake was in a position to keep away from many of the prices associated to working a network system.

The idea was launched using four Boeing 737-800 aircraft.

Snowflake was organized as a business unit with in SAS Group, in the identical method as Scandinavian Airlines. Snowflake’s enterprise mannequin was not the same as that of Scandinavian Airlines. This included several well-liked tourist destinations, reminiscent of London and Paris, which also attracted a large share of business travelers. It primarily served Mediterranean holiday locations, as well as locations common with expatriates. Snowflake served a complete 28 destinations from its bases at Stockholm Arlanda Airport and Copenhagen Airport. From March 2004 the 2 737s in Copenhagen had been replaced with two McDonnell Douglas MD-82. From March 2004 two 737 aircraft have been replaced with two McDonnell Douglas MD-82s. Owned by the SAS Group, it was organized as a business unit within Scandinavian Airlines, working as a virtual airline utilizing their crew and aircraft. The idea was launched using four Boeing 737-800 aircraft. Equally, if a Snowflake aircraft turned sufficiently delayed, a traditional SAS aircraft can be dispatched instead. Snowflake introduced giant cutbacks to the winter schedule, and deliberate to solely operate 4 providers: to Athens, Istanbul, Good and Rome.

4 Boeing 737-800 have been transferred to the new airline and painted in a brand new livery. Most flights had a limited frequency, typically one to 4 instances per week. Commonplace fare included one piece of checked-in luggage. A brand new fare scheme was introduced from 1 October, whereby there were eight price levels, starting from €58 to €228. As part of this system, the company’s administration, in cooperation with McKinsey & Company devised a scheme to higher target the leisure market. In 2003 SAS underwent a major restructuring program, which largely targeted on reducing unit prices. SAS selected to not launch the service in Norway. All of the aircraft had been registered in Norway. The aircraft operated with Scandinavian Airlines‘ aircraft, crew and codes. At the identical time two more aircraft, 156-seat McDonnell Douglas MD-82s, had been introduced to the Snowflake fleet. Snowflake was organized to turn out to be an internal customer within the group, for example purchasing ground companies from SAS Floor Providers. For example, Snowflake incurred the same floor dealing with costs as Scandinavian Airlines. Snowflake had initially had success with their expatriate routes, however from 2004 passenger numbers fluctuated considerably on those routes. In Could 2004 the load issue drop to forty percent.

The load factor elevated to eighty percent through the summer season months. Starting with the 2004 summer time schedule, commencing 28 March, SAS introduced additional services. Grensund, Peter (18 August 2004). “SAS lägger ner sitt lågprisbolag”. Braconier, Fredrik (12 June 2004). “SAS ersätter Snowflake med Spanair”. Husår, Malin (2 June 2004). “Åtta linjer ryker när Snowflake hårdbantar”. With the ticket costs primarily based on cost financial savings which by no means materialized, the airline failed to operate with a revenue. However, it soon proved that the company was not in a position to realize the inner costs that had been utilized in calculating prices. However, they did not assist interlining. From Copenhagen the airline started flights to Ankara, Beirut, Skopje, Break up and Valletta. From Stockholm services had been introduced to Ankara, Inverness, Lisbon, Palma de Mallorca, Cut up, Skope and Valletta. From Copenhagen the airline‘s first flights have been to Alicante, Athens, Bologna, Lisbon, Málaga, Palma de Mallorca, Pristina and Sarajevo. They flew out of Terminal 2 at Copenhagen and Terminal 5 at Stockholm.