=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/01/28/f= inancial0926EST0045.DTL ---------------------------------------------------------------------- Wednesday, January 28, 2004 (AP) SAS proposes merging its two Norwegian airlines into single unit (01-28) 06:26 PST OSLO, Norway (AP) -- The Scandinavian Airlines System's management Wednesday proposed combini= ng its two carriers in Norway, SAS and Braathens, into a single airline to improve efficiency. SAS took over economically troubled Braathens, mainly a Norwegian domest= ic carrier, in 2001 and immediately began cutting costs. Braathens continued to operate under its own name and with its own organization in Norway. In a news release, the SAS management said they were proposing to the airline's board that the two airlines be merged into one unit. They said it could be branded SAS, Braathens or an entirely new name in Norway. "Many questions of a business and operative nature remain and these must be resolved before group management presents its proposal, as planned, for SAS's board for final decision in March," the statement said. The management said a key condition would be reaching new staff contracts that would cut salaries and alter working conditions to increase profitability and competitiveness. SAS and Braathens have both faced stiff competition in Norway after Norwegian Air Shuttle changed its concept and expanded its fleet of aircraft in late 2002 to become a low price airline on Norwegian routes. =20 ---------------------------------------------------------------------- Copyright 2004 AP