Volvo Aero and SAS Sign Contract Worth 1.8 Billion


GOTEBORG, Sweden, April 4, 2003 (PRIMEZONE) -- Volvo Aero and Scandinavian Airlines (Other OTC:SASDF) have signed a contract whereby Volvo Aero is becoming the principal supplier of engine overhaul services for Scandinavian Airlines' and Spanair's MD80 fleet of aircraft. The contract, which covers the period up to and including 2006, is expected to be worth SEK 1.8 billion to Volvo Aero.

Under terms of the contract, which was signed on Thursday, Volvo Aero will have primary responsibility for overhaul of the engines in Scandinavian Airlines' and Spanair's fleet of MD80 aircraft. The company estimates that several hundred IT8D engines will be taken in for maintenance during the contract period.

"We are very pleased that the contract has been signed. This is extremely important for our business," says Goran Norden, Marketing Manager of Volvo Aero's Engine Services business area.

The new contract is within the framework of Volvo Aero's planned annual volume of business and accordingly will not result in any new hiring.


For additional information, please contact
Volvo Aero
Goran Norden,  Marketing Manager 
+46 70 662 74 80

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