Saturday, February 04, 2006

Scandinavian Airlines

Does anybody understand Scandinavian SAS airlines' business model? They introduced a two-tier economy cabin for short-haul flights a year or so ago and I remember thinking it odd at the time (mainly because I had been booked into the lower tier and so was forced to pay for my dinner). If I have understood the offering correctly, they have an economy fare which offers inflexible tickets and requires payment for onboard refreshments. Economy Flex provides flexible tickets and an onboard catering service. This is in addition to their business class.

When I first noticed this behaviour, I thought it was just SAS being quirky. However, I read a remark in their in-flight magazine yesterday that suggested it actually has a history going back to the late 70s and was part of a strategy to innovate in a regime of heavily regulated fares.

It's still all a bit odd, though.....

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