The SAS Group announced plans for the airline on 10 December 2002, at the time giving it the provisional name "Scandinavian Light". The company stated that they aimed to create a low-cost airline which would focus on the leisure holiday market and on Mediterranean destinations. SAS hoped that the new airline would target a different market than Scandinavian Airlines and that the latter could instead focus on the business. A challenge for the company was at the time that it had overcapacity after a recent drop in passenger numbers.