By Chris Betros

Executive Impact Apr. 26, 2010 - 07:00AM JST ( 12 )

TOKYO —

Scandinavia has always been a popular destination for Japanese tourists, evoking images of Hans Christian Andersen, the Little Mermaid, Lego, Tivoli Gardens, Swedish glass-making, Lapland, Norwegian fjords and the land of midnight sun, among many others.

Scandinavian Airlines (SAS), the biggest carrier in Scandinavia and northern Europe, operates a daily flight from Tokyo to Copenhagen. The airport, which serves as the hub for SAS, has been voted one of the best airports in Europe; because of its great geographical position, passengers can easily transfer to flights to major cities in Europe.

While load factors have been quite good for SAS, these are still trying times for the industry. The prolonged recession has hit airlines hard and most recently, the Iceland volcanic eruption played havoc with flight schedules to and from Europe.

These are the challenges facing Ole Johansson, SAS Regional General Manager for Asia & Pacific, and his team in Tokyo. Johansson, who has been with SAS for 45 years, has represented the airline abroad since 1982. Over the years, his assignments have included Sweden, Argentina, Barcelona, Warsaw, Frankfurt, Madrid and finally, Tokyo.

In January, the Tokyo office became the regional office for Asia-Pacific, which covers Japan, China, Thailand and Korea, Southeast Asia, Australia and New Zealand.

Japan Today editor Chris Betros visits Johansson at the SAS offices in Shibakoen to hear more.

How has SAS been weathering the recession?

Last year was a bad year for the whole airline industry, although it was also a year when you could test your ability to operate in a difficult market environment, but we did reasonably well. So far this year, for the first three months, we have seen business travel start to pick up.

What has been your average load factor?

Around 80-90% with a good mix of business and leisure travelers. About 60% of passengers are Japanese. Even though demand is strong, there is still overcapacity in the market.

How many flights does SAS operate between Japan and Scandinavia?

We have a daily flight between Tokyo and Copenhagen, using an Airbus 340 with a seat capacity of 245. We have three classes—Business, Economy Extra and Economy. Something unique to SAS is the Economy Extra which is the premium economy class. SAS was one of the first airlines in Europe to introduce this product.

How do they differ?

Economy Class consists of 170 seats with individual entertainment in a cozy cabin. Then we have the Economy Extra cabin which is like the previous Business Class. You check in at Business Class counters, the seat reclines further, you have audio/video on demand, laptop power outlet, etc. Finally, there is Business Class which is very close to First Class and that gives passengers the highest comfort.

Tell us about your combination fares.

This is something that is unique to SAS. You can combine two of the three classes in one round-trip ticket to suit your travel budget. For example, on a day flight from Tokyo to Europe, you may choose Economy Extra but on the way back, because it is a night flight, you might prefer Business Class with its bigger seat. You can save up to 45% on your fares. It is a very attractive product for business people.

How do you market the airline in Japan?

We have a great sales team that keep close contact with companies and travel agencies. In addition, we do a mix of web advertising and some print advertising. We are aiming to be perceived as the natural choice of airline to Scandinavia for both business and leisure travelers. Often, we are at travel fairs together with Scandinavian Tourist Board to raise awareness of Scandinavia. For most Japanese, Scandinavia means the midnight sun, Norwegian fjords, winter light festivals, Lapland and aurora borealises.

Occasionally, we take part in campaigns with companies like Ikea and most recently, we sponsored a contest with Andersen’s bakery in Hiroshima. The best fairytale writer will get a round-trip ticket to the “home” of Andersen

Are there any campaigns coming up for summer?

Yes, Scandinavian Airlines will launch a special summer offer for its EuroBonus members in Japan (EuroBonus is the SAS frequent flyer program). Members will get from 10,000 to 20,000 extra points, in addition to their regular basic points, valid for one Tokyo-Copenhagen round trip per person, during the period June 1 to Aug 31. The only thing you need to do to benefit from this campaign, is to register on SAS’ website, www.flysas.co.jp. The extra points will then automatically be added to your EuroBonus account after you have flown.

How are online bookings?

They are increasing but it is still a small percentage. The bulk of our sales still come through traditional travel agents.

What trends do you see in the Japanese market?

As economic relations improve between Japan and Scandinavia/Europe, business travel will also increase. In the leisure segment, more people are traveling alone or as couples, but we still see a lot of group travel among the “Baby Boomer” generation.

Are there any plans to increase the number of flights?

We hope to in the future. There is a demand for direct flights to Stockholm and we are assessing it.

How often do you go out to Narita?

About twice a month, either when I am traveling myself or just to meet staff.

How many staff does SAS have?

In Tokyo, we have about 30 people, mostly in sales, marketing, cargo and administration. We outsource our check-in operations at Narita. 

What is a typical day for you?

I show up here around 8 a.m. and leave around 7 p.m. I have a lot of coordination activities for Japan and other countries because of my combined role. We are busy socially because we represent four countries (including a domestic airline in Finland). So we need to be members of various chambers of commerce, and the European Business Council because that’s where many of our customers come from.

Do you work on weekends?

I try not to. I enjoy photography and bicycling. That helps me experience Tokyo in a totally different way.

For more information, visit www.flysas.co.jp