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SAS to create new subsidiary in Ireland

SAS is the latest European airline to create a new airline / subsidiary. They are creating an Irish subsidiary – also called SAS – to fly some shorter routes because that’s the only way it can compete on costs with discounters like Norwegian Air, Ryanair and easyJet on certain competitive routes

The airline’s foreign competitors do not use a Scandinavian operating certificate on short international flights that touch SAS’ hubs in Stockholm, Oslo and Copenhagen, giving them a labour cost advantage. 

But even Oslo-based Norwegian Air, its most fierce competitor, operates many European flights under an Irish certificate, rather than a Norwegian one thus enabling the airline to pursue a much lower cost base than some of its competitors such as SAS. 

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