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Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
Air France-KLM looking to take controlling stake in SAS airline
SAS recorded revenue of US$4.8 billion in 2024, carrying about 25 million passengers. (EPA Images pic) PARIS : The Air France-KLM airline group today said that it 'will initiate proceedings' to acquire a majority stake in Scandinavian airline SAS, of which it is already a major shareholder. 'Air France-KLM intends to increase its stake in SAS's share capital, from 19.9% currently to 60.5%, via a full acquisition of the stakes held by Castlelake and Lind Invest,' the French-Dutch group said. Air France-KLM acquired its initial stake in the summer of 2024 after the Scandinavian airline had been weakened by the Covid pandemic. The airlines began some code-sharing and joint marketing, including bringing SAS into their SkyTeam alliance. Air France-KLM has never hidden its intention to increase its stake in SAS. 'This contemplated transaction reflects the successful turnaround of SAS and the positive results generated by the commercial cooperation initiated in 2024,' Air France-KLM said, adding that it intends to close the operation by the second half of 2026 if it can overcome regulatory hurdles. It said that the value of the contemplated investment would be determined at closing, based on SAS's latest financial performances. Air France-KLM's initial 19.9% investment in SAS was valued at US$144.5 million. In case of success, Air France-KLM said that SAS would become a subsidiary of the group, which would allow them to 'fully unlock their synergy potential via a comprehensive integration in all areas of business.' Air France-KLM would hold the majority of the seats on SAS's board. SAS had revenue of €4.1 billion (US$4.8 billion) in 2024, carrying some 25 million passengers. Air France-KLM, meanwhile, generated revenue of €31.5 billion and carried some 98 million passengers.
Yahoo
2 days 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
2 days 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
2 days 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.
Yahoo
2 days ago
- Business
- Yahoo
Air France-KLM to take majority stake in SAS
PARIS (Reuters) -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, it 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. 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. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
