" — j7._____z. rzvZZZZ __*- r f annual report IN MEMORIAM Annual Report # for the f iscal Year October 1, 1958 — September 30, 1959 PER KAMPMANN SAS has suffered a great loss through the death, on April 7, 1959, of Mr. Per Kampmann, Board Chairman of the Danish parent company, Det Danske Luftfartselskab A/S, DDL. Early in life, Mr. Kampmann became one of the leaders of Danish civil aviation and made important contributions to the growth of DDL. His activities in civil aviation were marked by a Jinn belief in its fu­ ture. and by an exceptional ability to foresee the extent and nature of conditions likely to affect the future development of the industry. Even before the second world war, Mr. Kampmann was deeply inter­ ested in the idea of a closer co-operation between the airlines of (he Scandinavian countries. In spite of the difficulties imposed by war conditions, Mr. Kampmann, Board Chairman of DDL since 1940, continued liis planning for the /moling of commercial aviation re­ sources in Scandinavia. Consequently, at the end of the war, the ground was well prepared in Denmark for the realization of these /dans. In 1946, Mr. Kampmann became the first Chairman ofthe Board of Scandinavian Airlines System. For the rest of his life, lie continued to serve SAS as one of the three Board Chairmen. Per Kampmann is one of the great names in the history of Scandinavian SCA/V0JJVAVM/V A fAUWES SESEE/M civil aviation. SAS deeply feels the loss of a prominent leader and will DENMARK - NORWAY - SWEDEN remember him with gratitude. SCA/VDf/VAVJA/V /I IJ?/ //V£S SyST£/H All Metropolitan aircraft could, however, be fully uti­ six months of SAS Caravelle operations, more than lized. From the first day of the conflict, the European 70.000 passengers flew the new jetliner. routes were operated with Metropolitans which met the Production during the fiscal year rose by 0.2 % to bulk of the traffic demands on these routes. This 107.8 million ton-kilometres (107.5 million). scheduling of the Metropolitan fleet, however, led to a Traffic increased by 6% to 56.2 million revenue ton- considerable decrease in inter-Scandinavian and Scan­ kilometres (53.2 million). dinavian domestic traffic. The load factor was 52.2 (49.5) and the cabin factor Virtually throughout the conflict, traffic to North Amer­ 53.4 (50.3). ica was maintained with DC-6B equipment with one daily flight to New York and five flights a week to Los Angeles. Weekly flights to Teheran and Djakarta Scandinavian Routes met part of the traffic demands on the Middle and Far East routes. Production on the inter-Scandinavian routes and the SAS OPERATIONS - GENERAL WORLD AVIATION IN 1958 domestic routes in Denmark. Norway and Sweden to­ Of the operations planned for the month of March, Scheduled civil aviation (excluding the Soviet Union talled 47.0 million ton-kilometres (50.6 million), re­ Production during the fiscal year 1958-59 hds been actual production reached 47 % and traffic 55 %. slightly lower than during the preceding year. By a and China) in the calendar year 1958 showed a traf­ presenting a 7.1 % decrease. Production during the fiscal year 1958-59 was 383.5 more efficient utilization of the fleet, an increase in fic increase from 9,220 to 9,620 million ton-kilometres. Traffic rose by 4.3 % to 24.1 million revenue ton- million ton-kilometres (397.9 million), representing a revenue traffic has nevertheless been achieved. Passenger-kilometres rose from 82,000 million to 86,000 kilometres (23.1 million). 3.6 % decrease. Of the total production, the intercon­ In March. 1959, a labour conflict developed between million and the number of passengers from 86 million The load factor was 51.3 (45.7) and the cabin factor to 89 million. tinental routes accounted for 60 %, the European and the Consortium and some of the flying personnel. The Middle East routes for 28 %. and the inter-Scandina- 55.7 (48.2). conflict led to a sharp curtailment of operations, but The increase from 1957 to 1958 was thus considerably fj^vian and Scandinavian domestic routes for 12%. SAS succeeded in maintaining a considerable part of lower (4-5 %) than the average increase during the Traffic rose by 3.9% to 211.0 million revenue ton- the traffic within Europe and. on a reduced scale, on preceding six years (about 15 °/«). The reasons for the kilometres (203.1 million). Passenger traffic rose 1.8 %, some routes over the North Atlantic, and to the Middle declining rate of expansion must primarily be sought cargo traffic 16.4 %, and mail traffic 4.7 %. The sys­ CO-OPERATION WITH OTHER and Far East. in the U.S.A. Extensive and lengthy labour conflicts, tem-wide load factor was 55.0% (51.0) and the cabin experienced by several U.S. carriers in 1958, and a cer­ CARRIERS Competition for international tralfic has sharpened, factor 57.2 (54.6). especially on the routes across the North Atlantic where tain stagnation in business in general affected domes ­ Swissair tic air traffic in the U.S.A. Since these operations ac­ a few carriers have introduced jet aircraft. 1 hese new In the technical field. SAS has maintained a close co­ count for approximately 50 % of the scheduled air Intercontinental Routes jetliners have attracted a considerable part of the operation with Swissair since October. 1958. This first traffic of the world, the total results for 1958 were, of traffic. On the North Pole route to Tokyo commercial rights year of co-operation has yielded valuable results, es­ necessity, strongly influenced by these factors. During the fiscal year, the revenue development of between Anchorage and Scandinavia were granted in pecially through the co-ordination of equipment pur­ SAS has been adversely affected by the labour con­ For the IATA member airlines, purely international October, 1958. During the winter season, the route was chase programs and other preparations lor the transi­ flict and the jet competition. By increased rationaliza­ traffic in 1958 increased by approximately 15% over served with two flights weekly, with an increase to tion to jet traffic. Considerable savings have been tion and effective cost control it has been possible to 1957. The number of air passengers between Europe three during the summer season. made by SAS and Swissair by joint utilization of tech­ and North America rose by as much as 27 % to offset these factors, and to balance income and expen ­ The number of weekly flights on the New York route nical ground facilities, flight kitchens, etc., at several 1.292.000. Over 50% of these passengers travelled by ses in the annual accounts. was increased during the winter season to 14 (13). Due points along their routes. the economy class introduced in the spring ol 1958. The introduction of the Caravelle on several routes in to extensive jet competition on this route, the number Furthermore, a close co-ordination of timetables and Europe and the Middle East, in May. 1959. marked The financial result in 1958 for world aviation is ex­ of SAS flights was reduced to 28 (31) per week during frequencies for certain route areas has benefited both the entry of SAS into commercial jet traflic. During pected to be rather unfavorable, due, in part, to the the summer season. carriers. Co-operation in this field will be intensified summer and autumn, the Caravelle operations have above mentioned developments in the U.S.A., and the Production on all intercontinental routes amounted to to further strengthen the two airlines in the coming been increased to such an extent that the SAS jet net­ high costs connected with the transition to jet traflic. 228.8 million ton-kilometres (239.8 million), represent­ period ol severe international competition. work has become the largest in the areas served. '1 he It is estimated that traffic revenue will total about ing a 4.6 % decrease. Caravelle jetliner has been well received by the pub ­ 84.200 million, whereas costs are expected to reach Traffic rose by 3.0 % to 130.7 million revenue ton- lic. and its technical performance has been up to ex­ approximately §4,360 million. Thai Airways kilometres (126.8 million). pectations. The load factor was 57.1 (52.9) and the cabin factor SAS has made a co-operation agreement with Thai Complementary orders have been placed for the future 59.7 (58.8). Airways Co.. Ltd.. Bangkok. At present this carrier, SAS jet fleet. Workshops and other facilities necessary sole operator of regular air services in Thailand, for the transition to jet traffic are nearing completion. SAS PRODUCTION AND TRAFFIC mainly serves domestic routes. Under the agreement. (Figures in fmrenlheses refer to the fiscal year lf)~>7-;>N). European and Middle East Routes The disposal of the older piston-engine fleet has be­ SAS and Thai Airways have jointly formed a new gun. During the period March 1-23, 1959, there was. as On May 15, 1959, SAS introduced the Caravelle jet­ company, Thai Airways International. Ltd. This car­ The co-operation with Swissair, begun in 1958. has led mentioned earlier, a labour conflict between SAS and liner into scheduled service. As additional aircraft in rier will serve international routes between Thailand to valuable results and has been further expanded. certain categories of the flying personnel. 1 his caused the Caravelle series were delivered, the jet network and. primarily, certain countries in the Far East. SAS has entered into co-operation with '1 hai Airways. the grounding of the entire DC-7C lleet and.