In a bid to further cut costs - SAS is now requesting a 10-percent price reduction on goods and services in a letter to its suppliers, an activity that is part of the framework of the company's Profit 2008 action program.
"We are under pressure due to declining margins. The reason for this is that fuel prices have risen by 100 percent since 2007, at the same time as we have experienced an economic slowdown with declining air ticket prices as a result," says Patrik Knutsson, CPO of the SAS Group.
To help turn around this earnings trend, SAS is asking its external suppliers to contribute with reduced prices.
At the same time, SAS hopes to strengthen its relations and extend its cooperation with the suppliers that choose to contribute to a price reduction.
This measure is line with Strategy 2011, where one of the goals is to coordinate and consolidate the number of suppliers.
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