Professor believes SAS must reduce ticket prices – news Norway – Overview of news from various parts of the country

– In order to get back up and running as quickly as possible, SAS must do something dramatic. The most aggressive means of action is to reduce prices. This is what Tor Andreassen, professor of innovation at the Norwegian School of Economics, tells news. He believes that SAS must start selling tickets at a low price. Both to fill up the planes going forward, but also to get back the customers they lost during the strike. In addition to reducing ticket prices, the professor believes that it would be a good strategy to advertise this through heavy advertising campaigns. – Just to show that they are back. They want to win the customers’ trust, and have lower prices on favorable and attractive routes, says Andreassen. Battle for customers If SAS lowers prices to win customers back, other airlines in Norway will face the low prices to keep the customers they got during the pilot strike, believes Andreassen. Tor Andreassen is professor of innovation at the Norwegian Business School. He believes that SAS must implement drastic measures to win customers back. Photo: NHH He explains that Norwegian and Flyr have lower operating costs than SAS, and that they therefore have the opportunity to maintain the low prices for longer. – In this battle for customers and low prices, I believe that the first two will be able to stand longer than what SAS can afford to do, says the professor. news has been in contact with SAS, which does not want to comment on its pricing strategy. Marked increased demand during the strike Eline Skari, senior communications advisor at Norwegian, writes in an e-mail to news that it is natural that prices go down when capacity in the market increases. She explains that SAS is back on many of the routes they share, such as the routes to Bergen, Oslo, Trondheim and Tromsø. – This means that there are a total of more seats to choose from for those who are going out to travel. Eline Skari, senior communications advisor at Norwegian, says that the company noticed an increase when SAS went on strike. Photo: Pressefoto / Norwegian – On many of the most popular routes we have very few seats available, while on others there is good capacity. Therefore, the prices naturally vary, says Skari. In addition to a busy high season during the summer months, they noticed an increase when SAS went on strike. – We do not want to speculate on how the prices will continue, she concludes. Depending on supply and demand Communications director at the company Flyr, Anita Svanes does not comment on how the prices will develop either. – At Flyr, we have a structure with low administration costs and sober management salaries that allow us to compete on price, she says. – Prices are dynamic, and depend on supply and demand at all times, she writes in an e-mail to news. – Better to wait until now Professor Tor Andreassen believes it is a good strategy to buy tickets now, if you know you are going to travel right after the summer holidays or in the autumn. – Then you will make good purchases on attractive tickets. Andreassen believes that when SAS has got the customers back, they will gradually adjust the prices back up to what they were before the strike. – They must have profitable growth. They don’t have that if they have low prices, says Andreassen. Probably have to lower the prices Terje Berge in Finn Reise says that ticket prices have been fairly stable this week. – We see that the prices are not back to normal. The planes are well sold, and the few seats that are available can be charged a lot for. It will probably be quite a while before prices return to the old price level we have been spoiled with. Terje Berge in Finn Reiser Photo: Finn.no Berge says that they still believe that as SAS gets started, it will become less expensive to travel. – We know that both Flyr and Norwegian have quite full planes already. If SAS is to enter there now, they will probably have to lower the prices to attract people again, says Berge. Eventually, SAS will get its planes in the air and back into normal traffic. – Then there will be more seats in the air that the other players will also have to deal with. It will be exciting to see how much the prices can go down. At the same time, everyone has to make money after two years in the red, says Berge.



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