Scandinavian Airlines System (SAS) began in 1946 from the merger of the Danish airline (DLL), Norwegian airline (DNL) and the Swedish airline(ABA) to operate overseas services for Sweden, Norway and Denmark.

"Offer competitive air connection within between, to and from each of the three Scandinavian countries (Sweden, Norway and Denmark) partly using its own aircraft, and partly together with selected partners."

Critical issues facing up until 1981

1. Highest operating costs in the industry compared with US carrier and Asian airlines.

2. Distribution system still not competitive

3. Not sufficient traffic system which were not meet customers needs

4. International recession, higher interest rates and fuel costs

5. Overcapacity and less regulated competition

6. Reputation going in declined stage both service and punctuality, e.g. 5% down on on-time performance (90% to 85%) which indicate a major drop by airline standards

7. Kastrup airport became less attractive for traveller due to old fashion terminals compared to Amsterdam, Frankfurt or Zurich.

8. Moving toward product driven rather than service-driven one.

9. Misused of the right services to custiomers by ob

5. Formed under tri-national airline

Largest media advertising campaign were carried out, featuring all add-on services for customers and stress on the price.

SAS has chosen to expand their business through method of diversification. Diversification can be expanded as business growth through new products and new markets. By expand through related diversification, the company chose to integrated into similar industries both forward and backward in their existing travel chain. One of the key successes was when SAS wanted to integrate other elements of the travel package offered. The following units have been created:

4. Close relationships with other airlines (Swiss Air and KLM) after forming KSSU agreement

Some common words found in the essay are:
EPorter Force, Market PenetrationIncrease, Airways International, Technology Changes, Norway Denmark, Figure PEST, Process Flight, Socio-cultural Social, SSP SAS, Frankfurt Zurich, reservation system, market share, distribution system, strategy sas, airline industry, business traveler, traffic system, supplier power, rates fuel costs, business class, industry airline industry, market share competitors, rates fuel, loss market share, distribution system 3,
Approximate Word count = 2068
Approximate Pages = 8 (250 words per page double spaced)