Business

Air France-KLM to Become Majority Shareholder in SAS

Air France-KLM has announced last week-end that it will initiate proceedings to take an additional stake, from 19.9% at present, in the Scandinavian air carrier SAS. The present share-holding structure includes Castlelake (32%), Etat danois (26.4%), Air France-KLM 19.9%, Lind Invest (8.6%) and Autres (13.1%).

Since the summer of 2024, Air France-KLM has implemented a commercial cooperation 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%. The Danish State would retain its 26.4% stake in SAS and its seats on the Board of Directors.

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.

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.  

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. 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. The Group would hold the majority of seats on the airline’s Board of Directors.

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. 

Benefitting Customers

Air France-KLM CEO Benjamin Smith said that they were excited by the prospect of fully welcoming SAS into the Air France-KLM family as following its successful restructuring, SAS has delivered impressive performance, and they were 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, 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.

As of June, SAS has 138 aircraft serving 130 destinations. It has carried 25 million passengers, moved 60,000 tonnes of cargo and its revenue stood at $48.24 billion as of 2024.

Global Business Magazine

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