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Scandinavian Airlines - Innovation and Growth During the Twentieth Century

Many would say that in a sense, Scandinavian Airlines was destined to succeed. The reason we say this is simply because of the fact that, while their beginnings were humble, they weren't as humble as some others have been over the years. Local airlines in Scandinavia joining forces with Swedish investors was the beginning of the Scandinavian Airlines endeavor. The advantages of the net results of existing assets gave way to unheard of benefits. This meant a fast acceleration into efficient operation with all of the pooled assets, resources and airline infrastructure already in place to add to a fast upbringing. But, they have been hugely successful, so the beginning was really not any kind of fluke.rnrnTaking a quick look at the year, 2006, SAS had a revenue of 42 billion Swedish Krona, or SEK. During that year, they carried a total of just over 25 million passengers domestically and around the world. That alone put the airline at #9 on the top 10 in Europe charts. Much of that success can be chalked up to great moves in the mergers and acquisitions departments of SAS. The Star Alliance Group is an aviation consortium of which, SAS is a founding member. One tactic the company has pursued is that of joining forces with a wide variety of other airlines over the last fifty years, which has definitely paid off. One of the biggest keys to a successful airline is brand awareness and marketing prowess. Scandinavian Airlines created a tremendous coup in world wide brand awareness during the mid 1950s. One of the things that happened during this time was a maiden flight over the North Pole to the west coast of the US and a city now known as Los Angeles. Then they took a leap of faith and branded this service as "round the world service over the North Pole to the US." The destinations serviced by that exact route included Denmark, Alaska and Japan.rnrnThe current state of affairs for Scandinavian Airlines finds them continuing in the tradition of a global air passenger carrier. Scandinavian Airline's long-distance routes include destinations in both North America and Asia. A majority of the international travel for SAS originates from Stockholm, Sweden and Copenhagen, Denmark, their two main hubs. From the hubs in Copenhagen and Stockholm, the division called SAS International, is responsible for all intercontinental routes as well as all sales units outside of Scandinavia. They currently have more than 900 employees. This International Division operates separately from the Denmark, Sweden, and Norway European traffic divisions. As you would expect with any company that is owned and operated by three separate countries, this can be problematic. The operations, however, of this company, continues to move forward as it always has. But this approach has given SAS a great deal of diversity which is part of their strength. The amount of business that they currently have allows them to perpetuate their success.

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