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    PATA and OAG strengthen organisational partnership

    The Pacific Asia Travel Association (PATA) has announced a new preferred partnership with OAG, a leading data platform for the global travel industry.
    The new agreement will provide PATA members with continued access to unique and reliable aviation data through the PATAmPOWER platform. It will also enable both organisations to provide wider insight and intelligence to the Asia Pacific visitor economy, through events, analysis, and further data collaboration.
    OAG has the world’s largest network of flight information, covering the whole journey from planning to customer experience. The data helps businesses achieve many goals, principally by finding new revenue streams, driving growth across operations, and deepening the relationship with customers.
    Its customers include search engines, metasearch, tech start-ups, travel booking sites, international government organisations, global financial institutions, airlines, airports, and travel operators.
    “Strengthening our partnership with OAG ensures we can provide members with the highest quality, most reliable aviation data including historical data (back to 2018) and 12-month forward frequency and seat capacity data. This will enable them to make smarter and more insightful decisions as they plan their recovery strategies,” said Santosh Kumar, Director of Business Development, PATA. “I look forward to leveraging OAG’s data and insight to assist us in our mission for the responsible development of travel and tourism to, from and within the Asia Pacific region.”ADVERTISEMENT“Our deeper partnership with PATA will provide richer data insights to facilitate market recovery and future investment in the region” said Mayur Patel, Head of Sales, Asia. “As Asia Pacific air travel embarks on its own come back journey, having access to data, networks and knowledge through this collaboration will equip PATA members will vital insight to get ahead of the curve”.

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    PATA: Positive increases in IVAs predicted

    The Pacific Asia Travel Association (PATA) is pleased to release its latest quarterly updated international visitor arrivals (IVAs) forecast current to May 6, 2022, based on the data provided by 39 Asia Pacific destinations. In line with the start of the region’s travel recovery, aggregate numbers into the 39 Asia Pacific destinations are projected to have step-wise annual increases beginning in 2022 and continuing to 2024 across all three of the mild, medium, and severe scenarios.
    IVA recovery rates (above 2019 baseline level) for visitors into and across Asia Pacific is predicted to reach between 25-48% of the volume last received in 2019, with the numbers reflecting the range of potential outcomes from a severe to a mild scenario. This is a solid improvement over the 16-18% range of 2021 – the trough year for most Asia Pacific destinations – and heralds the beginning of a continued growth trend to 2024.

    The number of foreign arrivals into and across Asia Pacific is still projected to either reach parity with the 2019 position (medium scenario) or be well above it (mild scenario) by 2024. Even so, the severe scenario reminds us that a possibility still exists for conditions to deteriorate once again – with multiple influencing factors including the ongoing pandemic continually evolving, the Ukraine/Russia crisis, escalating jet fuel prices, and limited air capacity and routes, plus industry-wide staff shortages.
    While annual growth is predicted to occur for each of the 39 destinations covered between 2022 and 2024, there will of course be some variations. This is illustrated by the differences in relative positions for each of the three destination regions of Asia Pacific, as well as under each of the three scenarios within each of those regions.ADVERTISEMENT
    At the individual destination level, recovery rates vary broadly in 2022 and are predicted to range from less than 15% to almost 99%, while in 2024, they range from 86% to 120% under that same scenario. Overall, however, projections are now for Asia Pacific to reach an IVA count in 2024 of 510-832 million, depending on which scenario plays out over that period.
    Similar variations are apparent across the source market regions relevant to Asia Pacific, although in general, the trend is back towards the same inbound structure of 2024, at least under the medium scenario.
    As PATA CEO Liz Ortiguera observes “While a positive turning point is predicted to occur in 2022 for all the 39 Asia Pacific destinations covered in these updated forecasts, many market variables are currently influencing travel and significant challenges still lay ahead. While the momentum for international travel demand is obviously increasing, multiple challenges need to be navigated by the global travel and tourism sector.”
    “From emerging new strains of the SARS-CoV-2 virus to escalating jet fuel prices, the spectre of rising inflation to the current geo-political conflicts, these variables are concerns in the face of global pent-up demand to reconnect and travel.”
    Ms. Ortiguera concludes by reminding the travel and tourism sector that “Safety, wellness and smooth travel experiences are top of mind as needs for post-pandemic travellers.  It’s important to provide clarity in processes and deliver good customer support in the face of ever-changing circumstances.Recognition should go to all the travel and tourism staff that are enabling efficient and great travel service delivery and experiences in the face of all these challenges. We need to respect and applaud their efforts as the backbone of the industry through these challenging times.”
    The PATA Asia Pacific Visitor Forecasts 2022-2024: 2Q Updates is now available at https://www.pata.org/visitor-forecasts.
    What you will learn from this report:Updated international visitor forecasts for Asia Pacific between 2022 and 2024 by destination region, sub-region, and destination, highlighting changing demand preferences in the face of policy changes.
    Updated forecasts and recovery patterns for 39 individual destinations allowing for the development of better recovery strategies for the post-COVID-19.
    PATA International members have exclusive access to the recording of the, PATA Visitor Forecasts 2022 to 2024: 2Q Updates’ webinar which included expert speakers from The Hong Kong PolyU, Euromonitor International, Visa, and OAG. The speakers provided an overview of the updated forecasts for international arrivals to Asia Pacific between 2022 and 2024 as well as latest insights into key source markets’ traveller behaviour and Asia’s capacity rebuild and changing supply structures.

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    Qatar Airways collaborates with GE Aviation and IATA to generate the leadership programme

    Qatar Airways and GE Aviation have joined forces to launch a customised training programme under the name ‘Leadership, Future and Culture’ (LFC). National Senior Managers of Qatar Airways attended this one-week course, which was designed for them to connect and enrich their leadership skills.
    The ‘Leadership, Future and Culture’ training programme was created to enable National participants to develop a better understanding of different ways to further evolve and shape the future of leadership in Qatar’s culture. Employees from other sectors and industries in the aviation field have also participated in this programme, which has benefitted Nationals in learning from other leaders and gain different perspectives. GE experts also displayed a number of ways to facilitate leadership skills through the emphasis of fostering teams by covering topics on Leading in 2025, Coaching as an Alternative Mode, Neuroscience of Success, and Storytelling.
    Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker, said: “The Al Darb Qatarisation programme continually provides unique opportunities for Nationals designed to elevate them to excellence and success. Within this framework, Qatar Airways strives to further support the community and gear up for the future. Through this special programme collaboration with GE Aviation, National Senior Managers acquired the necessary information to boost their leadership skills and reinforce their knowledge on perseverance and maintaining smart objectives, as well as helping them facilitate an efficient working environment within Qatar Airways”.
    Qatar Airways Senior Vice President Nationalisation and Special Projects, Ms. Nabeela Fakhri, said: “Qatar Airways has always sought to enhance its employees’ careers, by providing the best innovative training programmes to develop and further enrich their skills and abilities. By providing our National Senior Managers with this unique training programme, we are ensuring the progress and professional development of our National leaders, while asserting Qatar Airways leading position”.
    GE Aviation General Manager Sales Middle East, Mr. Main Canaan, said: “GE Aviation was proud to partner with Qatar Airways and GE Crotonville to deliver the (LFC) program. Crotonville was established in 1956 is believed to be the world’s first corporate university. Its mission is to inspire, develop and connect the leaders of today and tomorrow and as such, it represents the very epicentre of GE culture and learning. The Leadership, Future & Culture program was specially designed for selected strategic customers to replicate the type of learning experience GE leaders receive at the Crotonville campus. We were pleased to share GE’s approach to leadership development with Qatar Airways and look forward to continuing this leadership journey with future participants”.ADVERTISEMENTThe ‘Leadership, Future and Culture’ programme was held in Ossining, New York at Crotonville, in GE’s facilities and encompasses an interactive forum, providing Qatar Airways’ National leaders with instructions to resolving issues and ways to tackle tough challenges. All leaders were also given the opportunity to take part in innovative aviation courses administered by International Air Transport Association (IATA) to progress their knowledge and skills. The courses inspire the participants to step out of their comfort zones and delve deep into aviation industry knowledge.
    A multiple award-winning airline, Qatar Airways was announced as the ‘Airline of the Year’ at the 2021 World Airline Awards, managed by the international air transport rating organisation, Skytrax. It was also named ‘World’s Best Business Class’, ‘World’s Best Business Class Airline Lounge’, ‘World’s Best Business Class Airline Seat’, ‘World’s Best Business Class Onboard Catering’ and ‘Best Airline in the Middle East’. The airline continues to stand alone at the top of the industry having won the main prize for an unprecedented sixth time (2011, 2012, 2015, 2017, 2019 and 2021).
    Qatar Airways also became the first global airline in the world to achieve the prestigious 5-Star COVID-19 Airline Safety Rating by Skytrax. This follows the success of Hamad International Airport as the first airport in the Middle East and Asia to be awarded a Skytrax 5-Star COVID-19 Airport Safety Rating. These awards provide assurance to passengers across the world that the airline’s health and safety measures are subject to the highest possible standards of professional, independent scrutiny and assessment.
    Qatar Airways currently flies to more than 150 destinations worldwide, connecting through its Doha hub, Hamad International Airport, currently named the ‘Best Airport in the World” by Skytrax World Airport Awards 2021.

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    British Airways companion vouchers opened up to solo travelers

    Travellers embarking on solo adventures around the world can now enjoy new benefits from their Companion Voucher, British Airways and American Express have announced.
    From today, Cardmembers who have earned a Companion Voucher since September 2021 on either the British Airways American Express® Credit Card or the British Airways American Express® Premium Plus Card can choose to redeem it when booking a solo trip, receiving a 50% discount on the Avios cost of the booking.
    This is an additional option for travellers offering added flexibility. Cardmembers can still choose to use the Companion Voucher to travel with a friend as they would have previously – receiving a second seat for a companion travelling on the same Reward Flight booking as them for no additional Avios.
    Companion Vouchers are awarded to travellers who hold either British Airways American Express Card and reach the required spend amount within their Cardmembership year. They can be redeemed on available British Airways Reward Flights, which don’t need to start in the UK, allowing Cardmembers to book either one journey for 50% of the Avios required, or take a second traveller on their journey – on the same flights and in the same cabins – for no additional Avios, plus paying taxes, fees and charges per person.
    In addition to this change, from today those booking British Airways Reward Flights using a Companion Voucher (either as a solo traveller or with a companion) will now have more control over their Avios spend. They will be able to choose from a variety of options regarding how many Avios to spend versus cash on each booking. This was previously fixed to just one Avios and cash option based on the route and cabin.ADVERTISEMENTBritish Airways American Express Credit Card Companion Vouchers can be redeemed in economy cabins, while British Airways American Express Premium Plus Card Companion Vouchers can be redeemed across all cabins. Extra availability in Club World (long-haul business class), exclusive to those using the Companion Voucher, was added last year to make redemptions even easier. This extra availability is for those using a Companion Voucher earned since September 2021 either as a solo traveller or travelling with a friend.
    Ian Romanis, Head of Retail and Customer Relationship Management at British Airways, said: “Solo travel is a popular option for our customers, which is reflected in the number of solo bookings we have seen. We’ve listened to our customers and we’ve introduced these exciting changes, understanding that flexibility is more important than ever to them.”
    Caroline Bouvet, Vice President at American Express, said: “Companion Vouchers are an incredibly valuable benefit for Cardmembers, so it’s exciting that we’ve been able to make it even easier for them to be used on flights. As people return to travel – looking to go away by themselves or with a friend – the British Airways American Express Cards are a great way to turn everyday spending in to travel rewards, and the only way to earn the much-valued Companion Voucher.”
    British Airways is considered the Europe’s Leading Airline 2021 by World Travel Awards.

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    Eve and Falcon Aviation Services announce partnership

    In April 2022, a subsidiary of Eve Holding, Inc. (“Eve” or the “Company”) and Falcon Aviation Services (“Falcon”), a leading Business Aviation Services operator in the Middle East and Africa region, signed a Letter of Intent (LoI) for up to 35 electric vertical take-off and landing (“eVTOL”) aircraft. With deliveries expected to start in 2026, the partnership will introduce the first eVTOL touristic flights from the Atlantis, The Palm in Dubai. Eve and Falcon will work together with the local stakeholders and authorities to support developing the Urban Air Mobility (“UAM”) ecosystem for the United Arab Emirates (“UAE”).
    Captain Ramandeep Oberoi, Chief Operating Officer of Falcon, said: “We are ecstatic to partner with Eve and be the first operator of eVTOL in Dubai & the MENA region. The launch of this concept fully aligns with the Smart Dubai vision and will contribute to positioning Dubai as a global leader in sustainable Urban Air Mobility transportation. Falcon is actively engaged in Urban Air Mobility emergence and committed to delivering an effective and sustainable new urban transportation mode and providing the community with better and faster solutions. We are particularly proud to take a new step in the UAE, in a project that will be revolutionary for sustainable urban mobility.”
    “We are thrilled about partnering with Falcon and having the immense opportunity to enable the future urban mobility in the United Arab Emirates and launch eVTOL flights in Dubai. This is a massive challenge for both companies, which will help to position Dubai as a leader in the urban air mobility market. Eve’s global experience, which spans different regions across the globe, will surely benefit the achievement of this project,” said Andre Stein, co-CEO of Eve.
    This collaboration reinforces Eve’s commitment and efforts to safely enable the global UAM ecosystem by providing an agnostic and holistic portfolio of solutions.

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    IATA: Ground handling makes progress towards standardisation

    The International Air Transport Association (IATA) reported that the IATA Ground Operations Manual (IGOM) Portal and IATA’s Safety Audit for Ground Operations (ISAGO) are successfully driving greater standardisation of ground handling processes around the world. This is particularly important for the rapid build-up of operations as COVID-19 restrictions are lifted.
    “IGOM and ISAGO complement each other in driving much-needed harmonisation across the ground handling sector. And the boost in participation in both programs as the industry ramps up its operations is good news for both safety and efficiency. The aim of both is to reduce risk, avoid ground damage and enable standardised, sustainable operations,” said Monika Mejstrikova, IATA’s Director of Ground Operations.
    IGOM Portal
    Since the IGOM Portal’s launch in January, 58 airlines and 11 ground service providers (GSPs) have subscribed to its services.
    The portal enables airlines and ground handlers to interface with the IATA Ground Operations Manual. IGOM is the global industry standard for ground handling worldwide. The portal is an online platform where, with IGOM as the primary reference, airlines and GSPs can exchange information, including any variations, on their ground handling requirements.ADVERTISEMENT“The goal is global adoption of ground handling standards. The efficiency and safety gains from global standardisation have been proven throughout aviation’s development. The IGOM portal is helping achieve this by making it easier for airlines and GSPs to manage and monitor the implementation of standards and to understand variances. With 69 organisations already using the portal the drive for greater standardisation is getting a boost,” said Mejstrikova.
    The IGOM Portal is available free of charge to all airlines and GSPs. To subscribe, access the IGOM Portal.
    ISAGOSince March 2022, 28 airlines have joined ISAGO, thereby benefiting from 500 audit reports available to complement their oversight activities.
    ISAGO provides an independent assessment of all aspects of managing and providing safe ground handling services, based on the IGOM standards.
    “The increase in ISAGO participation reflects the benefits of verified compliance with global standards. With more governments now including ISAGO in their safety oversight programs, we can expect even more airlines and GSPs to join. In addition to safety improvements, ISAGO participation helps airlines to allocate resources efficiently,” says Mejstrikova.
    Given the benefits of standardisation to safety performance, IATA urges governments to recognise ISAGO in their regulatory frameworks for safety oversight. Key among the many positive outcomes is the assurance that Safety Management Systems (SMS) are being implemented by GSPs.

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    Dubai South signs agreement with ‘International Humanitarian City’

    Dubai South, the largest single-urban master development focusing on aviation, logistics and real estate, has announced that it signed a memorandum of understanding with International Humanitarian City (IHC), the largest humanitarian hub in the world. The agreement entails the implementation of Masary, an e-gate pass system, at IHC to track and trace shipments within a secure network and ensure efficient management of cargo movement.
    The agreement was signed during Seamless Middle East by Giuseppe Saba, CEO of IHC, and Abdul Basit AlMarzouqi, Director of the Logistics District at Dubai South, in the presence of senior members from both entities.
    Giuseppe Saba, praised the agreement with Dubai South saying that it would take IHC humanitarian-aid shipments to a new level of efficiency and accuracy. He underlined the importance of an e-gate pass system, saying: “Logistics play a crucial part in IHC’s operations, and the e-gate pass system will strengthen the efficiency of IHC community’s emergency response. It will save time on aid shipment processing and, ultimately, save the lives of people in need. We would like to consider the signing of this agreement as a starting point for our partnership with Dubai South. Through this partnership, we hope to further develop any tool or facility that could help IHC and its community achieve the goals identified by His Highness Sheikh Mohammad bin Rashid Al Maktoum when he founded IHC.”
    Commenting on the agreement, AbdulBasit AlMarzouqi said: “As a prominent logistics hub, we are committed to facilitating optimal smart operational solutions for our clients to ensure seamless services and the uninterpreted flow of goods. Dubai South’s Logistics District will continue to enhance its portfolio of offerings and address the increasing complexity involved in the movement of goods. As such, it will promote best practices and establish a tech-enabled dynamic ecosystem that would allow our valued clients to thrive in this competitive market.”ADVERTISEMENTDubai South was launched as a Dubai Government project in 2006, representing an emerging 145-square-kilometre, master-planned city based on the happiness of the individual. The city is identified as Dubai’s flagship urban project and is designed to create 500,000 jobs in an integrated economic environment that supports all types of businesses and industries.
    IHC, which was founded in 2003 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, is the only non-profit, independent, humanitarian free-zone authority, hosting a community of around 85 members comprising UN organisations, non-profit and non-governmental organisations and commercial companies. The international humanitarian community in Dubai consists of about 500 people, representing around 80 nationalities, thus positioning itself as the largest humanitarian hub in the world.

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    Ramp-up and transformation of SAS continues

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    Ramp-up and transformation of SAS continues

    SAS continues the ramp-up and has during the quarter seen the highest number of passengers since the pandemic started. Meanwhile, the work with the necessary transformation plan, SAS FORWARD, continues.
    The plan was presented when the Q1 results were released on February 22 and is designed to secure long-term competitiveness. It will allow SAS to effectuate a deleveraging of its balance sheet while substantially improving its liquidity position. In addition to reducing the cost structure and improve efficiencies, SAS is seeking to convert approximately SEK 20 billion of debt and hybrid notes into common equity and will also seek to raise not less than SEK 9.5 billion in new equity capital. The success of the plan depends upon SAS attracting potential new capital from the capital markets and other sources and upon SAS fully achieving the targeted SEK 7.5 billion annual cost reduction by fiscal year 2026.
    Earnings before tax ended at negative SEK 1.6 billion for the quarter and the cash balance at the end of the quarter was SEK 8.5 billion.
    FEBRUARY 2022–APRIL 2022Revenue: MSEK 7,048 (1,932)
    Income before tax (EBT): MSEK -1,557 (-2,331)
    Income before tax and items affecting comparability: MSEK -1,613 (-2,331)
    Net income for the period: MSEK -1,520 (-2,410)
    Earnings per common share: SEK -0.21 (-0.35)
    SIGNIFICANT EVENTS DURING THE QUARTERADVERTISEMENTAS presented a comprehensive transformation plan: SAS FORWARD. A successful implementation of the plan will secure long-term competitiveness and improved financial strength
    The SEK 3,000 million credit facility secured with the main owners in 2021 was drawn
    Erno Hildén was appointed as Executive Vice President and CFO
    SIGNIFICANT EVENTS AFTER THE QUARTERThe aftermath of the COVID-19 pandemic has led to most of the airline industry experiencing difficulty in rebuilding operations. This has led to SAS reducing its summer program by 4,000 of a total of 75,000 flights
    NOVEMBER 2021–APRIL 2022Revenue: MSEK 12,593 (4,214)
    Income before tax (EBT): MSEK -4,154 (-4,246)
    Income before tax and items affecting comparability: MSEK -4,234 (-4,258)
    Net income for the period: MSEK -3,962 (-4,443)
    Earnings per common share: SEK -0.55 (-0.63)
    QUARTERLY RESULTS ARE IMPROVED AS A RESULT OF RAMP-UPLooking back at the second quarter, we can see that demand improved as travel restrictions were eased. Passengers flying with SAS increased 28% compared to the previous quarter and the flown load factor reached approximately 67%, up 11 percentage points compared with the earlier quarter. Our capacity was increased by 3% compared to the first quarter. The transformation of SAS has to continue to adapt to the new market conditions in order to be able to remain flexible, competitive and financially strong for the long-term future. Earnings before tax ended at negative SEK 1.6 billion, an improvement of SEK 1.0 billion compared with last quarter, or a SEK 0.7 billion improvement year-on-year. Ticket sales continue to increase ahead of the summer period and SAS is targeting 80% capacity deployment compared to summer 2019.
    Cost reductions across all of SAS remain in focus to secure our cost competitiveness. Total operating expenses during the quarter ended at SEK 7.8 billion and total operating revenue landed at SEK 7.0 billion for the quarter. Total revenue increased 27% compared with the first quarter, an improvement of approximately SEK 5.1 billion compared with last year, but still 31% below the second quarter in 2019, which was unaffected by COVID-19.
    The cash balance at the end of the quarter was SEK 8.5 billion. At end of the first quarter of FY2022 the cash balance was SEK 3.4 billion. Operational cash flow during the quarter amounted to SEK 2.5 billion, compared with SEK -1.4 billion for the same period last year.
    UPDATE ON SAS PROGRESS ON TRANSFORMATION PLANDespite this positive development, SAS continues to face substantial structural cost challenges while also facing growing competition with substantially lower cost structures than SAS. SAS also incurred substantial additional debt during the pandemic that added to its pre-COVID highly leveraged balance sheet. In addition, recent macroeconomic changes (including fuel and exchange rates) and geopolitical events are limiting operations and create additional costs. Given these factors, the SAS Board has concluded that a substantial restructuring is needed to enable SAS to become profitable by implementing SAS FORWARD.
    Key Elements of SAS FORWARDReducing the annual costs by SEK 7.5 billion
    Redesigned fleet, network and product offerings
    Digital transformation
    Positioning SAS as the leader in sustainable aviation
    Operating platform acceleration
    Strengthening SAS’ balance sheet by deleveraging and raising new capital
    Debt-to-equity conversion and equity raise
    SAS is seeking to convert approximately SEK 20 billion of existing debt and hybrid notes into common equity, of which a majority is on-balance sheet debt and hybrid instruments (state hybrid notes, commercial hybrid notes, lease liabilities, Swiss bonds and term loans from states and commercial banks) and some relates to maintenance contract obligations and other executory contract obligations. The contemplated conversions are designed to strengthen the balance sheet and significantly reduce the debt-burden being carried in order to relieve SAS from elevated financial costs that currently weigh on profitability, and to position SAS for future growth.
    In addition to debt conversions, SAS is looking for alternatives to raise new equity. SAS will seek to raise not less than SEK 9.5 billion in equity capital. The planned SEK 9.5 billion or more equity raise is expected to provide sufficient liquidity to fund operations through the full implementation of SAS FORWARD and the recovery in passenger demand post COVID-19. It is currently expected that a significant share of such new equity will likely be sought from new investors.
    The new equity capital and debt-to-equity conversions contemplated as part of SAS FORWARD will entail substantial dilution to existing shareholders.
    Labor discussionsSAS continues to pursue negotiations with all of its organized labor groups as a means of achieving a consensual outcome with respect to labor’s share of the burden sharing program. Notably, the requested labor concessions are an important element of SAS achieving a competitive and sustainable business model, but in aggregate represent less than 20% of the targeted annual cost improvements. An agreement with organized labor groups is a condition of SAS FORWARD and it will not be possible to raise new capital or secure the future of the airline without labor burden sharing.
    Update on discussions with stakeholdersDiscussions are currently ongoing regarding stakeholders’ participation and acceptance of burden sharing. Given the limited progress made so far, there can be no guarantees that SAS FORWARD will be successfully completed. In the event that the expected burden sharing, debt conversions, and new capital raise are not completed as planned, SAS will not be able to support its existing capital structure and current liquidity levels and it cannot be ruled out that SAS could become unable to meet its obligations over the longer term as they fall due.
    Implementation processesSAS FORWARD involves complex multiparty negotiations. As is usual in a restructuring process, it is possible that SAS may seek to utilize one or more court restructuring proceedings designed to assist in the resolution of SAS’s financial difficulties and help implement parts of SAS FORWARD.
    Finally, it should be noted that the completion of the cost reduction programs, the debt-to-equity conversions, the fleet restructuring and the significant equity capital raise are subject to uncertainty and there can be no guarantee of success in such efforts by SAS. Further, the transactions envisaged are subject to various conditions including EU Commission and other state aid approvals and other regulatory clearances and various stakeholder approvals, which have not yet been obtained.
    POSITIVE MARKET DEVELOPMENT TOWARD THE SUMMER SEASONSAS continues the ramp-up and has during the quarter had the highest number of passengers since the pandemic started. We have recently experienced positive market development and strong ticket sales ahead of the important summer season. SAS and Apollo (a provider of charter travel services to and from the Nordic market) also signed an agreement during the quarter, concerning summer charter flights, within the framework of their three-year collaboration. Flights will depart from around 20 locations in Sweden, Norway and Denmark and fly to around 30 Mediterranean destinations.
    The SAS traffic program and capacity are increased according to customer demand, but there are constraints to the growth of traffic, as effects of the pandemic linger on. The whole airline ecosystem has difficulties ramping up, which also has an implication on SAS. We foresee challenges during summer relating to everything from airports and ground staffing to crew training bottlenecks such as availability of training instructors, and we also see continued delayed aircraft deliveries. In order to minimize the risk of disruption and create more stability for the upcoming summer travels, SAS has made adjustments to the traffic program during June to August, after the quarter ended.
    SAS aims to be a global leader in sustainable aviation and during the quarter we launched the Travel Pass Biofuel, a punch card for corporate customers who regularly travel to the same destination and want to include biofuel to reduce the climate impact of their trips.
    SAS Scandinavian Airlines is nominated as Europe’s Leading Airline 2022 by World Travel Awards.

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