APEX Global EXPO 2024 Video Interview Series: Paul Verhagen, SAS Executive Vice President & CCO

Yep, absolutely. Yeah, there's lots of Delta energy, and basically it comes down to customer obsession. I know that sounds like an open door, but that is what it is. But when you say customer obsession, it is that important that you put your money where your mouth is, right? And that is what SAS is doing. We have a lot of things in the pipeline when it comes to improving our products and services. First and foremost, you will see, for example, come summer 2025, we will be reintroducing on our European flights a — yeah, let's call it classical business class. So far we have a product somewhere in between and hence a bit difficult to explain to the customer, especially the non-Scandinavian customer what it is. Yes, but then summer 2025, we will have a European business class with middle seat free, upgraded catering, of course all the ground attributes, etc. So that's one very important European business class. Um, two — and that's also one of the reasons why I'm here — um, we are looking at rolling out NextGen Wi-Fi throughout our entire fleet, which we don't have today. We have a bit of an inconsistent product and working on that. We're adding a lot of strategic partners to our EuroBonus program, which is our frequent flyer program. So most exciting things happening there. Um, yeah, on the topic of frequent flyer and top-tier customers, we will be opening towards the end of this year, early next year, a second lounge at our Stockholm Hub. And we have just signed with Copenhagen, which going forward will be our most important hub in terms of intercontinental traffic. We will have a flagship hub that opens in May 2027, so two years down the road, but hey, very clear signal that we will have a flagship lounge there which will be probably 30 to 40 percent bigger than the one that we have today. So lots going on, and of course, last but not least, also a network, because that at the end of the day is the backbone of an airline, right. Uh, we're increasing a lot. Speaking of Copenhagen, a few weeks ago we announced 15 additional destinations out of Copenhagen into Europe. We just, well a few months ago, opened Atlanta, and come May next year, we're also opening Seattle. So a lot of things going on.

Yeah, well, I don't want to take all the thunder already, but of course first and foremost that next gen WiFi across the fleet which we're working on. But then yeah, we also envision a situation, and in a not too distant future, we will have an all-channel kind of experience where we can share the same information on whatever iPhone or tablet the customer is using, the same information on his or her seatback, but then also the tablet that the crew is using, so that there is this continued flow and you can really come to a personalized kind of attention, where for example, 'Hey, we are aware that the last time you flew with us you enjoyed this gin and tonic. Would you like us to offer the gin and tonic next time or this time around?' Or use the seatback for personalized information, like for example, 'Mr. or Mrs. Johnson, you actually made it to Gold status with this flight, and congratulations, here is your new virtual gold card.' So really using that and making sure that the brand experience with SAS goes beyond the in-flight experience.

Yeah, it's going well. So we joined first in September, so now exactly two months ago. Um, we did it in a record time: six to eight months, where normally an airline joins an alliance in a period of 12 to 18. It went well from an IT system integration perspective, frequent flyer recognition, so first and foremost that. Um, we have codeshares now in place with the most important of our partners in SkyTeam. We have earn and burn in place basically with all of the SkyTeam members. We have seen our EuroBonus members actually already applying for award tickets on the majority of SkyTeam members, so they are enthusiastic about it. Just last week, actually here in LA, we participated in the Aviation Challenge, which is the SkyTeam initiative to collectively come to a greener and more sustainable aviation business. We flew in the most sustainable way our aircraft to LA two weeks ago, and then again all the network groups, which of course are live now with our new Sky partners. Hence, for example, the opening of Atlanta, hence the opening soon of Seattle. We're moving some of our new flying into JFK, and in a few weeks you might see another announcement that I'm not able yet to share here, but hey, comes maybe the second half of November, you'll hear us announcing something else very exciting.

I will, thank you. Everyone, thanks.