Falling oil prices will no doubt help ease some of SAS’ pain, but the picture that presents is of an airline from another age, trying to survive against all the odds. In a situation which is “ probably the most difficult it has ever been,'' according to SAS Chief Executive Officer Mats Jansson, job cuts and aircraft groundings are however the only options for a company hidebound by political and industrial conditions from a more leisurely age, when airlines flew the flag, no matter what the cost.

So, when Mr Jansson says that the carrier is not “dreaming” of a consolidation partner, but instead pursuing a "strategy based on standing alone", what he probably means is that this is not a choice of preference, but a matter of reality. SAS is simply not everybody’s idea of a perfect match.

If that is the case, it suggests an imperfect future at best. Ultimately, unless systemic change is possible, the best way to stop losing money is to cease operating entirely. That said, Mr Jansson is doing the best he can with a weak hand of options – and a strong array of unions.

By cutting back to core operations (including reportedly now planning to sell out of minority shareholdings in Latvian Airlines and bmi) his intention has been to allow a greater focus on the main Scandinavian business.

The sale of haemhorraging Spanair was to have been a major step towards rationalisation, but that process was “discontinued due to the challenging market circumstances,” Mr Jansson added, “The value that we could have been able to realize did not reflect the underlying strategic value inherent in the company.”

That may prove in retrospect to be an unfortunate judgment, given the damage the airline is now wreaking on group finances, losing SKR515 million for the period.

But the bottom line for Scandinavian Airlines System is that it was a model of international cooperation when it was established 62 years ago this month. Unfortunately for this once great airline, there are many at government and union level whose vision of its role have not changed over that time.

The pruning may continue a while longer, but the simple fact is that time has passed the venerable model by. Unless an – unlikely – willingness develops to accept some major political pain, SAS looks likely to continue to wither on the vine. Hardly the stuff of dreams.

SAS group share price: Sep-07 to Aug-08

Source: Centre for Asia Pacific Aviation & SAS group