Loading

Air France-KLM to take a stake in SAS – another step in airline consolidation

Premium Analysis

Air France-KLM's decision to take a stake of up to 20% in SAS, announced 3-Oct-2023, was something of a surprise. SAS chose a consortium comprising Air France-KLM, Lind Invest ApS, Castlelake (global investment firm), and the Danish state as the winning bidder as the Scandinavian airline looks to emerge from Chapter 11.

The surprising element is that SAS, a Star Alliance founder member, is now expected eventually to join SkyTeam. The deal raises the prospect that the Franco-Dutch group may become the future majority shareholder in SAS. Before that, Air France-KLM and SAS will seek to establish a commercial partnership, presumably to include the North Atlantic joint venture with Delta Air Lines.

In addition to receiving fresh capital from the consortium, Air France-KLM's extensive intercontinental network offers SAS customers a far wider range of global destinations via hubs in Paris and Amsterdam. SAS offers Air France-KLM an enhanced presence in Scandinavia, a region that has often proven difficult to penetrate for non-local airlines.

The deal is crucial to the emergence of SAS from Chapter 11, is another small step in European airline consolidation, and is evidence of Air France-KLM's return to financial strength.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,787 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.