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Air France–KLM set to buy majority stake in SAS
Air France–KLM has announced that it is initiating proceedings to take a majority stake in Scandinavian carrier SAS. The top European group, which currently holds a 19.9% stake, intends to increase its share to 60.5%, subject to regulatory approval.
Air France–KLM has announced that it is initiating proceedings to take a majority stake in Scandinavian carrier SAS. The group currently holds a 19.9% stake and intends to raise its share to 60.5%, via a full acquisition of the stakes held by Castlelake and Lind Invest, subject to regulatory approval.
This contemplated transaction reflects the successful turnaround of SAS and the positive results generated by the commercial co-operation initiated in 2024.
The acquisition of this majority stake would give Air France-KLM control of SAS, which would become a subsidiary of the Air France-KLM Group. The Scandinavian airline currently has in service 138 carriers that serves 130 destinations across the globe.
It would allow the leading European airline as well as SAS to fully unlock their synergy potential, confirm the Group’s expansion in the Scandinavian market, and create additional potential for value delivery to shareholders. The Group would then hold the majority of seats on the airline’s Board of Directors.
Subject to the obtaining of all the necessary regulatory clearances and satisfaction of all conditions precedents, the ambition is to close in the second half of 2026.
Air France-KLM said since the summer of 2024, it has implemented a commercial co-operation between SAS, Air France and KLM in the form of extended codeshare and interline agreements, further strengthened by SAS joining the SkyTeam alliance.
Provided all the necessary conditions are met, Air France-KLM would fully acquire the stakes held by Castlelake and Lind Invest, bringing its own stake to 60.5%, said the company in a statement.
The Danish State would retain its 26.4% stake in SAS and its seats on the Board of Directors, it stated.
Air France-KLM’s interest in pursuing this transaction is driven by the significant improvement of SAS’s financial and operational performance, the success of the current commercial cooperation, as well as the Group’s confidence in the Scandinavian carrier’s long-term potential.
"We are excited by the prospect of fully welcoming SAS into the Air France-KLM family," said Benjamin Smith, the CEO of Air France-KLM.
"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," he stated.
"This operation would benefit our customers and all Scandinavians who would enjoy enhanced connectivity, as well as the SAS teams whose dedication has been key to restore their airline to its rightful place. They would join a group of airlines united by a shared commitment to excellence and a more sustainable future for air transport. We look forward to this new chapter in our shared journey," he added.
The value of Air France-KLM’s contemplated investment in SAS would be determined at closing, based on SAS’s latest financial performance – including ebitda and net debt. This transaction would be in line with the Group’s medium-term financial outlook.-TradeArabia News Service