According to a statement made by the chief executive of Scandinavian carrier SAS, the airline industry is compelled to face a tough and challenging time during this year and the next year due to the issues of alarming rise of oil prices and overcapacity.

Telling about the airline industry as a whole, SAS chief executive Mats Jansson told Norwegian daily Dagens Naeringsliv, "There will be short-term rescue actions, drastic measures."

According to him, a "deadly cocktail" of factors are combining during these times threatening to weaken the airline industry. He noted, "This is worse than after 9/11, worse than during the oil crisis of the 1970s. There is no direct bankruptcy threat to SAS anymore, but measures must be taken."

He too added that the trade unions have already started realizing the seriousness of the present situation.

Most notably, SAS had a net loss of SEK973 million kroner (USD$162 million) during the first quarter and following that, the airline embarked on a strategy to bring down costs and increase profits, which included grounding 11 aircraft in 2008.

Jansson observed, "The fleet must be renewed over time. A result of seven percent of sales is needed for us to manage the necessary investments and secure our future independence."

He too noted that those airlines that have ordered for more planes during the industry's upswing several years ago and were about to receive them only now, were actually facing a deadly danger. He said, "Most of the low cost airlines have not hedged against higher oil prices. A serious problem, a complete catastrophe."