Airline consolidation continues to be a thing in Europe, this time with Air France-KLM Group moving to become the majority owner in Scandinavian Airlines System Group (SAS).
Air France-KLM Group currently holds a 19.9% stake in the Scandinavian carrier, which it acquired a stake in.
Since the summer of 2024, commercial cooperation between SAS, Air France and KLM has expanded, in the form of extended codeshare and interline agreements, as well as SAS joining the SkyTeam alliance.
To shore up its holding to 60.5% (and thus take a majority ownership is SAS Group, Air France-KLM would fully acquire the stakes held by Castlelake and Lind Invest. The Danish State would retain its 26.4% stake in SAS and its seats on the Board of Directors.
Subject to obtaining all necessary regulatory clearances and satisfying all conditions, the ambition for Air France-KLM will be to close in the second half of 2026.
In Quotes
Anko van der Werff, President & CEO of SAS, said:
“Air France–KLM becoming the majority owner would marka defining moment for SAS and a strong signal of confidence in the direction we’re heading,”
“It brings not just stability but will also allow for deeper industrial integration and the full backing of one of the world’s leading airline groups, once regulatory approval has been obtained. Together, we will be better positioned to deliver greater value to our customers, our colleagues, and the wider region.”
They added:
“This relationship is grounded in mutual respect, dedication to operational excellence and strong sustainability ambitions. As global interest in Scandinavia continues to grow, we believe this consolidation strengthens SAS’ ability to connect Scandinavia with the world—and the world with Scandinavia—by positioning Copenhagen as our global hub for the region, while continuing to uphold strong and strategic operations in both Oslo and Stockholm,”
“We remain true to our identity, heritage, and deep customer focus. SAS will continue to be proudly Scandinavian at heart, look and feel.”
Benjamin Smith, CEO of Air France-KLM, said:
“We are excited by the prospect of fully welcoming SAS into the Air France-KLM family”,
“Following their successful restructuring, SAS has delivered impressive performance, and we are confident that the airline’s potential will continue to grow through deeper integration within the Air France-KLM Group. This operation would benefit our customers and all Scandinavians who would enjoy enhanced connectivity, as well as the SAS teams whose dedication has been key to restore their airline to its rightful place. They would join a group of airlines united by a shared commitment to excellence and a more sustainable future for air transport. We look forward to this new chapter in our shared journey.”
Consolidation continues
We’ve seen airlines being picked off one by one in Europe, with most of the full-service carriers in one of three blocs – the Air France-KLM Group, Lufthansa Group or International Consolidated Airlines Group. It seems that Air France-KLM wants to exert more influence and control over SAS, and use it as a network carrier, providing important hubs in Copenhagen, Stockholm and Oslo (and provide relief to its hubs in Amsterdam and Paris).
In honesty, it’s probably been coming since SAS accepted Air France-KLM’s first offer of help. Like any investment, it takes time to understand what you have brought and how it fits in
Like any major change of ownership, the European Commission will need to turn its eye to this to ensure market fairness, as well as appropriate remedies, as a tie-up of this nature will need some agreements to let it happen.
We’ll have to see what agreements are to get this show on the road.
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