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SURPRISE: SAS taken over by Air France KLM consortium, leaving Star, joining SkyTeam

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Today was the day that Scandinavian airline SAS was to announce its new shareholders as it completed its financial restucturing.

The belief in the market was that Scandinavian banks and institutions would come together to produce an ‘all local’ deal which kept full control of the airline in the region.

The market was wrong.

SAS acquired by AIr France KLM, to join SkyTeam

Surprisingly, Air France KLM was announced today as the lead partner in the winning bidder for the airline.

Air France KLM will form a consortium with financial firms Castlelake and Lind Invest, together with a contribution from the Danish government, to acquire the airline.

Initially, Castlelake will be the largest shareholder with 32% followed by the Danish government with 26%. Air France KLM will cap its shareholding at 19.9% for now. Some equity will be given to existing creditors of the airline.

Importantly, Air France KLM has agreed that – after no less than two years – it can take a controlling stake in the airline by acquiring shares from other investors.

It has been confirmed that SAS will leave Star Alliance – of which it was a founding member – and join Air France KLM (and Virgin Atlantic) in SkyTeam. The airline will restructure itself to provide greater feed into the existing Air France and KLM operations in Paris and Amsterdam.

SAS taken over by Air France KLM consortium

The new investment totals $1.175 billion. This is made up of a mix of equity ($475 million) and convertible debt ($700m) together with $500m from Castlelake to refinance the ‘debtor in possession’ term loan.

The Air France KLM share of the investment is $145m, of which $110m is equity and the remaining $35m in the form of secured convertible bonds. 

The deal is expected to leave nothing to the existing shareholders of SAS who have been wiped out by the Chapter 11 restructuring. The deal still needs various legal approvals before it can complete and SAS AB is delisted – completion is currently planned for the second quarter of 2024.

SAS Chief Executive Anko van der Werff said:

“Through the completion of this process and the opportunities presented by being part of SkyTeam, we will be able to further enhance SAS’s offerings for the benefit of our colleagues, customers and communities”

Benjamin Smith, CEO of Air France KLM said:

“This is an important day for SAS and for Air France KLM. We are pleased to be part of the winning bidding consortium selected by the board of SAS. Air France KLM looks forward to establishing strong commercial ties with SAS. With its well-established position in Scandinavia and strong brand, SAS offers tremendous potential to Air France KLM. This cooperation will allow Air France KLM to enhance its position in the Nordics and improve connectivity for Scandinavian and European travelers. We look forward to being a part of this new chapter in SAS’ history and thank the board of SAS for their trust.”

You can read more on the Air France KLM website here and in the official SAS release here.

With Lufthansa acquiring Italy’s ITA in a similar staged process and IAG keen to pounce on TAP, we may see three flag carriers absorbed into bigger groups by the end of 2024.


How to earn Flying Blue miles from UK credit cards

How to earn Flying Blue miles from UK credit cards (April 2025)

Air France and KLM do not have a UK Flying Blue credit card.  However, you can earn Flying Blue miles by converting Membership Rewards points earned from selected UK American Express cards.

These cards earn Membership Rewards points:

Membership Rewards points convert at 1:1 into Flying Blue miles which is an attractive rate.  The cards above all earn 1 Membership Rewards point per £1 spent on your card, which converts to 1 Flying Blue mile.

The American Express Preferred Rewards Gold card earns double points (2 per £1) on all flights you charge to it, not just with Air France and KLM but with any airline.

Comments (88)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Vit says:

    I have been following the development a bit myself but never expect this to happen. I guess the sentiment is slightly different following covid, chapter 11, etc. The locals and colleagues were once proud of their flag carrier but did mention not much hope after their shares were wiped out.

    Intrigued to know how this turns out to be (I am an optimist and feel it is better overall) but will need to plan my EB point redemption game if things start going south!

  • SteveCroydon says:

    What about EU competition requirements? They will need to approve the deal.

  • PeteM says:

    TAP to IAG now then?

    • meta says:

      Very good fit. I guess IAG airlines can learn from TAP the fine art of ignoring the customers and turning planes mid-air to avoid their seizure.

    • Rhys says:

      Is TAP at all attractive without a new Lisbon airport though? The experience is horrendous and there’s no room for growth.

      • G says:

        Feeds into their transatlantic / americas monopoly; TAP have a young fleet (two/three A321 daily LRs from Lisbon to Newark) and have now started running a profit.

        • meta says:

          Also good West/South African network – Angola in particular which BA used to serve… although I agree a lot of cross over with Iberia and BA (Dakar, Accra, Johannesburg…)

          • Nick says:

            I’d be amazed if TP went through competition clearance, given the south american reach. Famous last words of course, but it’s very hard to see that working without a huge divestment somewhere. SK less of an issue because there isn’t the same concentration of operations in one particular market.

          • newbz says:

            Let’s not forget about Sao Tome and Principe.

          • meta says:

            @newbz I’d love to be able to redeem Avios for STP, but given that route has substantial number of flights a week via Accra, can’t see that sitting well with either BA or within EU competition law. If it goes head, there will be a lot of chopping.

      • Dubious says:

        The buyer of TAP is expected to grow connectivity at Porto. So it won’t all be focused on a Lisbon.

      • Track says:

        There is a room for growth at Lisbon airport, Rob. It’s just the experience is horrendous.

        International side of the airport is very under-developed.

        LIS lounge, shared by all airlines and Priority Pass is also ghm, very basic. TAP lounge next door only marginally better — does not give a reason to choose flying TAP.

        Fares though are not cheap. TAP is right on their revenue management, forget about travelling cheaper than 100 quid one-way, and very easily tickets are several hundreds.

  • swayinghips_pryinglips says:

    star alliance is falling apart. you just love to see it. hopefully Singapore, Ana, Eva and turkish see the light and come to one world. the rest can rot for all I care.

    never thought much of sas personally. a poor man’s finnair I say and have always been in their shadow. hopefully they merge with the Dutch and paint all the planes royal blue.

    • Chris W says:

      A poor man’s Finnair is exactly how I would describe SAS too.

    • AL says:

      Always was a fan of *’s service consistency, to be honest. Suspect LH members will keep it afloat.

    • Graham says:

      ANA will never join OneWorld while JAL is a member.

      • Jonathan says:

        ANA could also move to SkyTeam, although this’d only happen if there’s a good reason, and themselves and JAL are rarely mentioned here on HfP, despite Japan being a favourite destination

        • Rob says:

          Big feature on the new JAL seat on the way. We’d do more with them if they engaged – ANA in London is very proactive.

          • Jonathan says:

            Sooo we’d probably see more articles focusing on experiences that say AA offer if they wanted to cooperate more than what they do so, which is currently 0% !

            It’s in an airline’s’ interest to ensure that people know what they’ve got on offer, then more and more people would book to experience it

          • Rhys says:

            That’s what you’d assume, but clearly airline marketing and PR departments think differently!

            We have reached out to JAL numerous times over the years but never get very far!

        • Michael says:

          OK I’ll contribute 🙂 – Flew to Tokyo on Avios in economy in the summer to/from LHR – brutal long flights in economy thanks to Russian airspace being closed off.

          For several reasons (down to BA) it was out ANA, back JAL – interestingly ANA flew East and round below Russia, JAL flew back over Canada (so I can tell the kids they flew all the way round the world !)

          Both were “good” but JALs seats had noticeably more legroom and overall I preferred their offering – planes seemed newer, decor fresher and food edible with both. (I’m not much of a flying connoisseur – I just want a seat to get me there and back and I’ll eat pretty much anything put in front of me)

  • Katrina says:

    Skyteam really is the basket case group of airlines. To be fair, Air France are very good, but pulled down by the poor setup at CDG unless you know what you are doing. KLM were great but have gone all woke. Boxes of soya beans in biz, plus ‘meat-free’ days blah de blah. Delta. Yep. Virgin. Didn’t really have a choice as the bearded one hid all the profits on his island. (Possibly :-). OK: Virgin and Air France deserve better. But the rest?!?!

    • G says:

      Tarom???

    • Jonathan says:

      You’re not looking at wider range of SkyTeam airlines, so get some facts straight first or make sure that your claim has basis. Thanks

      • Rob says:

        SkyTeam is arguably now better than oneworld for getting you out of Europe, given the mix of Virgin, AF, KLM and Delta.

        What it lacks is a network Asian carrier of the scale of Cathay or JAL. Vietnam, Garuda and the Chinese carriers aren’t comparable.

        The best way to compare the alliances is via their five strongest members. SkyTeam isn’t any worse for having Czech Airlines in it, it’s just that it gives the perception that it is mainly smaller carriers.

    • executiveclubber says:

      Poor you, being forced to avoid animal abuse.

    • Tim P says:

      Skyteam manages to regularly make third place in “Global Alliance” awards.

    • A says:

      You forget saudia. I think maybe their medieval attitude is right up your strasse.

  • Bernard says:

    ‘T he market was wrong’
    Not correct.
    There’s a gossipy and usually wrong guy at Barcap who spreads incorrect rumours. He thought that. He’s not the market!
    He also thought Monarch was for real, Global Airlines will be a success, and while at HSBC , easyJet shares were worth double their rights issue price (below it now).
    He thought Alex cruz should be next ceo of SAS cause the two were buddies from clicksir (the ex BA CEO fired cruz was allegedly fired in disgrace by the present IAG ceo for selling BA’s art collection on the cheap so his wife allegedly made commission on the sale).
    So I detail this to show how misleading this guy is. A total gossip but a spreader of false information on many occasions

  • Jim Lovejoy says:

    Interesting. I wonder how long until SAS will be a full partner with Virgin Atlantic, not only earning points as now, but also bookable with points.

    It could make Virgin Atlantic points marginally more useful.

  • His Holyness says:

    BA obviously shafted bmi lifetime Gold’s but I reckon it’s possible FB might offer Lifetime Plat.
    I bet we will see the first proper status match campaign since BD though. I predict A3, BA and LH to all match. In addition to Flying Blue of course.

    • Kevin says:

      Sorry, newbie here. What’s FB?

      • Andrew says:

        Flying Blue.

      • Jonathan says:

        It’s not social media mega giant platform Facebook !

        FB is FlyingBlue, a SkyTeam loyalty program, its main members are AirFrance & KLM, although there some more, I can’t remember the full list off the top of my head…

        • QFFlyer says:

          SB (Aircalin) also uses Flying Blue – not the weirdest thing in the world, New Cal are a French Overseas Territory of course, but it’s odd seeing it on this side of the world (and hearing the occasional bilingual announcement including French at Melbourne Airport is a but of a novelty). That said, I assume most people use Qantas points to book SB here.

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