Scandinavian Airlines recently announced the replacement of two of its old carriers. The airline will phase out its MD80 and Boeing 737 classic aircrafts with leased A320 and next-generation B737s carriers.

According to the statement released, SAS has recently signed a lease agreement where it will be renting five new B737-800 aircraft from GECAS and has also signed a Memorandum of Understanding to lease 12 B737-700 aircrafts.

The carrier is also planning to replace its MD80 entire fleet with Airbus A320 between 2012 and 2016.

Rickard Gustafson, President and CEO, SAS said, the fleet renewal would "reduce complexity and improve our environmental performance".