Latest news with #airlineconsolidation
Travel Weekly
5 days ago
- Business
- Travel Weekly
Air France-KLM proposes to acquire a controlling stake in SAS
Air France-KLM has begun a process to take a controlling stake in fellow SkyTeam Alliance member Scandinavian Airlines (SAS). If the arrangement receives regulatory approval, Air France-KLM hopes to close the transaction in the second half of 2026. Air France-KLM took a 19.9% stake in SAS as part of the financial restructuring package that ushered the Sweden-headquartered airline out of Chapter 11 bankruptcy last summer. Under the new takeover agreement, Air France-KLM would acquire the SAS stakes currently held by global investment firm Castlelake and Danish company Lind Invest, leaving it with 60.2% of the Scandinavian carrier. The Danish state would retain 26.4% ownership of SAS and a seat on the board. The purchase price would be determined at closing, based on SAS's valuation. SAS currently codeshares and interlines with Air France-KLM. SAS joined SkyTeam last September, jumping over from the Star Alliance as Air France-KLM became a large shareholder. "This new step would allow Air France-KLM and SAS to fully unlock their synergy potential via a comprehensive integration in all areas of business, including loyalty, and would extend beyond commercial activities," Air France-KLM said in a statement. SAS said the move reflects a broader trend toward airline consolidation. SAS called joining Air France-KLM, "a step that is essential to ensuring long-term competitiveness for European carriers in an increasingly globalized market."
Yahoo
04-07-2025
- 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
