SAS Cargo wins 170M NKR contract with Norwegian Post Office

Scandinavian Airlines System said SAS Cargo has won a new four-year contract with the Norwegian Post Office worth about 170 mln nkr per year.

The new contract makes SAS Cargo “sole supplier for the major share of the Norwegian domestic market,” it said.

The new contract is valid from Oct 2002, it added.

In addition to the new contract, the Norwegian Post Office and SAS Cargo will investigate possibilities for further cooperation in strategically important areas.

On routes that SAS does not cover in Norway, the Norwegian Post Office has made separate agreements with other suppliers, it added.

The contract with SAS Cargo includes a quality guarantee stipulating that mail shall be delivered even if, for example, a passenger flight is cancelled.

If mail does not fly for this reason, SAS must either take the additional cost of arranging a flight or pay a penalty to the Post Office, it added.

The Norwegian Post Office has been an important SAS Cargo customer for many years. Since 1998, SAS Cargo has been the Norwegian Post Office’s main air transport supplier, it added.