Latest news with #AnkoVanDerWerff
Skift
a day ago
- Business
- Skift
We're Not Becoming ‘Air France-KLM Lite,' SAS CEO Tells Skift
Anko van der Werff has long championed consolidation. With Air France-KLM poised to take majority control, he's getting his wish while (hopefully) keeping the airline's Scandinavian soul. Anko van der Werff is having a wild week. On Tuesday, the SAS CEO signed a multi-billion dollar deal for 45 new Embraer aircraft – the company's largest direct order in decades. Today, he was shaking hands with Ben Smith as Air France-KLM prepared to triple its stake in the Scandinavian carrier. Speaking to Skift from Stockholm, van der Werff described Friday's announcement as both strategic and symbolic: 'This is not marketing, it's not boasting, but this is a historic day for us,' he said. 'We've been interested and open to consolidation and finally after many years – in fact, a few decades probably – SAS is succeeding in consolidating.' The deal, which remains subject to regulatory approval, will see AF-KLM increase its shareholding in SAS to 60.5%, enabling much deeper integration between the two companies. The Franco-Dutch group will acquire existing SAS stakes held by asset management firms Castlelake and Lind Invest. Investment as a Validation AF-KLM currently owns a 19.9% shareholding in SAS. Van der Werff said the move to more than 60% shows that the Scandinavian airline is on the right track: 'It is a validation of the transformation journey we have been on – it feels good.' The SAS chief laid out the enormous opportunities available if – or more likely when – the majority holding is confirmed. 'At 19.9% there's nothing you can do together beyond the normal interline and codeshare agreements that you can have with any other airline,' he explained. 'The 19.9% gave them a seat on the board, but commercially speaking for things like joint purchasing, fleet, network, schedule, and pricing, you're still completely two independent airlines.' Pending approval from the European Commission, the tie-up will unlock a broad range of synergies including joint pricing, fleet alignment, loyalty, and corporate contracting. SAS also hopes to become part of the transatlantic joint venture alongside Air France-KLM, Delta, and Virgin Atlantic. A Reflection of Performance The terms of the initial consortium deal signed last summer allowed AF-KLM to ultimately own a controlling stake. Van der Werff attributed the acceleration in shareholding to SAS's stronger-than-expected performance post-restructuring. 'We are performing better than planned. It sometimes feels uncomfortable as an airline CEO to say that things are going well, but within that context, we are doing well. I think Air France-KLM... liked what they saw and decided to move earlier once Castlelake and Lind offered their shares.' SAS' Anko van der Werff and AF-KLM's Ben Smith. credit: air france-klm Van der Werff joined SAS exactly four years ago when the airline was still in financially stormy skies. His mission was clear, but the path was less certain. Asked if he expected to be at this stage of the turnaround by the summer of 2025, the CEO revealed his hope was actually to get here around a year ago. The move is more than just a financial or operational shift; it's the culmination of a strategic vision Van der Werff's held since joining the airline amid the turbulence of 2021: 'I've always had this visualization that SAS needs to be part of something bigger,' he said. 'That was the philosophical, spiritual, whatever-you-want-to-call-it direction that I had.' Moving Faster Together While Air France-KLM is set to become the majority owner, the Danish government will retain a significant stake at around 26.5%. It will also continue to have board representation. Van der Werff welcomed Denmark's continued involvement but made clear that governance decisions lie with the new ownership. 'What I can say is it's already been very constructive to work in this environment over the last year since the restructuring. What I'm happy with is that [the consortium] owners have taken this decision and done what is right for the company. We'll probably move faster in that the 19.9% [AF-KLM existing stake] doesn't give you much. If you really want to go forward with the synergies, then you have to get into a controlling stake environment.' The Fate of SAS' Scandinavian Soul As well as comments in market filings on Friday, van der Werff took to LinkedIn for a more personal take on the proposed deal. Perhaps anticipating concerns about SAS's future identity, he wrote: "Make no mistake, SAS will remain proudly Scandinavian at heart, in look, and in feel." Pressed by Skift on what this would mean in practice, the CEO emphasized that SAS's identity would remain intact: 'If there was any concern about if the brand will still exist after this – it will. Will we still serve a distinctly Scandinavian product? We will. "Air France-KLM is not in the process of buying us to make an 'Air France-KLM Lite'. They bought us because we know Scandinavia. We are Scandinavians. It would be value destruction if you took the loyalty of 8 million EuroBonus members completely away and made it into something that we're not,' he added. Before returning to Europe, the industry veteran held senior leadership roles at Aeromexico, and Qatar Airways, and was most recently CEO of Colombia's Avianca. Van der Werff believes the deal reflects a wider structural shift in European aviation. 'Europe is lagging behind,' he said, citing his experience working in other global markets. 'It's still too fragmented and it needs a second phase [of consolidation]. I hope this contributes to that.' Air France-KLM Now Owns 20% of SAS: 3 Big Changes to Watch Air France-KLM's significant stake is more than just a strategic move—it's the latest stage of deepening consolidation in Europe's airline industry. With SAS defecting to the SkyTeam alliance and expanding cooperation with new partners, expect tighter network integration in the months ahead. Read More What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. Read the full methodology behind the Skift Travel 200.
Yahoo
a day ago
- Business
- Yahoo
Air France-KLM to take majority control of Scandinavian airline SAS
Air France-KLM said on Friday that it plans to increase its stake in Scandinavian airline SAS to 60.5%, up from around 20% currently. The additional shares will be acquired from Castlelake and Lind Invest, for an amount that will be determined by SAS's financial performance at closing. The sale is expected to be completed in the second half of 2026, subject to regulatory approval. The European Commission is likely to scrutinise the merger with care to ensure that it doesn't threaten fair competition. The Commission has already shown some opposition to airline consolidation. A merger between Ryanair and Aer Lingus was blocked on several occasions, while IAG abandoned plans to take over Air Europa due to expectations that the deal wouldn't receive the regulatory green light. Despite this, airlines in Europe continue to seek consolidation options in order to compete with overseas rivals, particularly from the US and the Middle East. Lufthansa, for example, has recently taken a stake in ITA Airways and airBaltic. '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,' said Anko van der Werff, president and CEO of SAS. Related AirBaltic CEO lauds new Starlink installation despite Musk controversy Lufthansa reaches deal to secure stake in Italy's ITA Airways Benjamin Smith, CEO of Air France-KLM, said: '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.' Air France-KLM took an initial stake in SAS in 2023 as the struggling Scandinavian airline underwent a two-year restructuring process following its bankruptcy filing. The Danish government also holds a 26.4% stake in SAS and will retain its board seats if the sale to the Franco-Dutch carrier goes through. SAS has a fleet of 138 aircraft, carried more than 25 million passengers last year, and flies to over 130 destinations. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
a day ago
- Business
- Zawya
Air France-KLM to take majority stake in Scandinavian airline SAS
PARIS - Air France-KLM said on Friday it plans to increase its stake in Scandinavian airline SAS to 60.5%, up from 19.9% currently, by acquiring the stakes held by top shareholder Castlelake and Lind Invest. The purchase, subject to obtaining the necessary regulatory clearances, is expected to close in the second half of 2026, Air France-KLM said. The value of the investment would be determined at closing, based on SAS's latest financial performance, including EBITDA and net debt, added the company. The Scandinavian airline welcomed the announcement, calling it a "defining moment" that marked Air-France KLM's commitment to strengthen SAS. "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," SAS CEO Anko van der Werff said. "Together, we will be better positioned to deliver greater value to our customers, our colleagues, and the wider region." SAS said it would continue to invest in its fleet and network. Air France-KLM CEO Ben Smith told Reuters in March that the company was looking to raise its stake in SAS, as the carrier was meeting the necessary milestones, including integration into the SkyTeam airline alliance, of which Air France-KLM is also a member. The two carriers have already had a commercial cooperation since summer 2024. Control of SAS would allow Air France-KLM to expand in the Scandinavian market and create additional value for shareholders, said the Air France-KLM statement. "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," said Smith. The stake sale comes as executives seek more consolidation in Europe's fragmented airline industry, which they say is needed to compete with U.S. and Middle Eastern rivals. SAS has 138 aircraft in service and carried more than 25 million passengers last year, generating revenues of 4.1 billion euros. The group would have a majority of seats on the board of directors, while the Danish state will keep its 26.4% stake in SAS and its seats on the board.
Reuters
a day ago
- Business
- Reuters
Air France-KLM to take majority stake in Scandinavian airline SAS
PARIS, July 4 (Reuters) - Air France-KLM ( opens new tab said on Friday it plans to increase its stake in Scandinavian airline SAS to 60.5%, up from 19.9% currently, by acquiring the stakes held by top shareholder Castlelake and Lind Invest. The purchase, subject to obtaining the necessary regulatory clearances, is expected to close in the second half of 2026, Air France-KLM said. The value of the investment would be determined at closing, based on SAS's latest financial performance, including EBITDA and net debt, added the company. The Scandinavian airline welcomed the announcement, calling it a "defining moment" that marked Air-France KLM's commitment to strengthen SAS. "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," SAS CEO Anko van der Werff said. "Together, we will be better positioned to deliver greater value to our customers, our colleagues, and the wider region." SAS said it would continue to invest in its fleet and network. Air France-KLM CEO Ben Smith told Reuters in March that the company was looking to raise its stake in SAS, as the carrier was meeting the necessary milestones, including integration into the SkyTeam airline alliance, of which Air France-KLM is also a member. The two carriers have already had a commercial cooperation since summer 2024. Control of SAS would allow Air France-KLM to expand in the Scandinavian market and create additional value for shareholders, said the Air France-KLM statement. "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," said Smith. The stake sale comes as executives seek more consolidation in Europe's fragmented airline industry, which they say is needed to compete with U.S. and Middle Eastern rivals. SAS has 138 aircraft in service and carried more than 25 million passengers last year, generating revenues of 4.1 billion euros. The group would have a majority of seats on the board of directors, while the Danish state will keep its 26.4% stake in SAS and its seats on the board.
