Scandinavian Airlines

Group 6: Kevin, Ika, Scott, Ryan

Vision:

To be Valued for Excellence by all stakeholders

Mission:We provide Best Value for Time and Money to Nordic Travelers whatever purpose of their journey

Promise:We promise to minimize your travel time and maximize the value of the time spend with us

1984 – SAS wins “Airline of the Year” award from Air Transport World

1946 – DDL, DNL, and SILA formed SAS to operate intercontinental Services

SAS History1957 – SAS is the first airline to offer "round the world service over the North Pole.“

1997 – STAR Alliance was founded

1984 – SAS wins “Airline of the Year” award from Air Transport World

1946 – DDL, DNL, and SILA formed SAS to operate intercontinental Services

SAS History1957 – SAS is the first airline to offer "round the world service over the North Pole.“

1997 – STAR Alliance was founded2011 – SAS launched “4 Excellence” Strategy

The SAS Strategy Platform 4 Excellence

Fleet size:  136Number of employees:  12,833 employeesPassengers per year:  27.2 million passengerSales Revenue (in US$):  $5.68 billionNumber of scheduled destinations:  128Daily departures:  667

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Passengers (in Millions)

Passengers (in Mill...

SAS Passenger

Scandinavian Airlines Fleet:

SAS • Northern Europe's leading

airline• Offers a wide range of

innovative travel solutions

Wi-fi Internet (a shared connection of 12 Mbps)

GSM – Sends/Receives SMS/MMS, Receives/Makes phone call Global System for Mobile Communications,

digital cellular networks

SAS in Technology

Environmentally Responsible

• Europe's most punctual airline 2011, 2010, 2009 by FlightStats. o 352,163 flights – 88.9% on time rate) o departure within 15 min

• World’s most punctual airline in July & Aug of 2011

• that SAS Group’s airline companies are the only ones in the world with both ISO 14001 and EMAS environmental certification.

Awards:

1. Describe the overall customer experience for an airline. How do you think customer service for an airline would compare with other service industries such as retail, healthcare and express delivery services?

Service Factory• Time Perishable• Low degree of labor intensity• Low interaction and customization

• It would be similar to healthcare, retail, and express delivery services in that they all have to meet the minimum customer expectations to remain viable.

• The airline industry differs from the other industries in that the customer interactions are less factory-like with Healthcare, retail, and express delivery services.

2. Mr. Jan Carlzon, the former President and CEO of Scandinavian Airlines (SAS) popularized the term “moment of truth.” Provide 5 examples of a “moment of truth” that could enhance SAS’s reputation for superior quality?

When a customer is:• Greeted by the gate agent• Receiving their baggage after a flight• Goes through security• Checking in• Waiting for a flight• On the flight

3. What is SAS doing to become a forerunner in the development of the airline industry?

• SAS is allowing the customer to design their own personal experience.

• Study hours of video tape to monitor customer behaviors and adapt their processes.

• Use the information Kiosks to better design the customer experience and develop a means of open communication with the customer.

4. a. What are basic customer needs that SAS has identified?

b. Why does SAS believe these have to be satisfied before moving up the pyramid?

c. What does SAS have to focus on to become more competitive?

d. What must SAS do in order to delight their customers?

a. Basic customer needs:The customer needs are those expected by the customer.

Examples:Safe, trouble free flightGet customers there safelyGet customers there on timeb. SAS believes these have

to be satisfied because:They believe that the fundamental customer needs serves as a basis for establishing an understanding of the customers.

c. SAS has to focus on this to be more competitive:Performance needs

Examples:Number of flightsArm and leg room

d. SAS needs to satisfy their customer’s delight requirements by working on:Exciting Requirements

Examples:Tailoring travel process to each individual

5. Explain the travel experience as a service process. What are the 5 phases of the travel experience?

Service FactoryTime PerishableLow degree of labor intensityLow interaction and customization

Includes all the parts of the interaction between the customers and SAS:1.Check In2.Lounge3.Gate4.In-Flight5.Baggage Claim

6. What three main areas of innovation did SAS chose to prioritize, based on the findings from the study? Why did they focus on these three areas? Provide an example within one of the three areas and discuss its benefits

“SAS focused on these 3 areas to achieve as profound an impact as possible on the customer’s overall impressions on the travel experience.”• In Flight Services• Ground Services• Information Services

Example:Information Kiosks provide up to date FAQ’s, relevant flight information, and customer contact preferences.

How does SAS’s customer service practice differ from the rest of the

industry?

SAS studied countless hours of footage of their customers to find out what is important to them.

This was a new technique when the case was written in 1999. This is an example of how they continue it today.

What would you do to improve SAS’s current customer service practices?

SAS should consider utilizing the experience that well traveled customers have by setting them up in separate areas or having express lanes dedicated to them so that employees may better spend time assisting customers that are not used to the procedures.

The End