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SAS: SAS to retain ground handling operations at the main airports

In line with the letter of intent signed in September 2015, SAS and
Aviator Airport Alliance Europe AB (Aviator) have agreed to continue
negotiations in respect of the transfer of SAS Ground Handling's line
stations in Gothenburg and Malmö to Aviator. However, SAS has decided
not to outsource ground handling at the main airports of Copenhagen,
Oslo, and Stockholm.

In September 2015, SAS signed a letter of intent with Aviator
concerning the transfer of ground handling at the main airports in
Scandinavia and in Gothenburg and Malmö. Following an analysis and
evaluation of the offer, SAS and Aviator have agreed only to finalize
negotiations on the transfer of ground handling operations at the
airports in Gothenburg and Malmö, which is in line with what SAS has
done at other line stations in Scandinavia and worldwide.

SAS has decided to continue to operate ground handling at the main
airports itself. In recent years, SAS has implemented a large-scale
streamlining program within SAS Ground Handling and has outsourced a
large proportion of the business, which has reduced costs by around
MSEK 300 over the past two years.

SAS and Aviator have concluded that the commercial criteria do not
exist to warrant a takeover of ground handling at the main airports.
SAS digitalization strategy will enable further streamlining and
customer improvements to be made within the sphere of ground
operations, which the company considers can be best achieved by

Negotiations on ground handling in Malmö and Gothenburg are expected
to be completed during summer 2016.

SAS Investor Relations

SAS is publishing this information in accordance with the Swedish
Securities Market Act and/or the Swedish Financial Instruments
Trading Act. This information was submitted for publication on May 4,
2016, at 8 am.


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