The Strategist

Air France-KLM to acquire 19.9% in SAS

10/05/2023 - 10:03

The restructured Scandinavian airline SAS AB will now have a 19.9% interest owned by Air France-KLM, with the possibility of an eventual controlling stake.

Kentaro Iemoto
Kentaro Iemoto
A group of investors, including Air France-KLM, Castlelake LP, and Lind Invest, will contribute $1.175 billion to SAS along with the Danish government, the airline’s press release reads.

Air France-KLM will be able to become a controlling stakeholder of SAS at least two years after the purchase complete, according to a provision in the consortium members' agreement.

"Air France-KLM looks forward to developing strong business ties with SAS. Through this partnership, we will be able to solidify our position in Scandinavia and advance regional transportation," stated the company.

SAS commenced bankruptcy procedures in July 2022. The airline was in a tough situation because of a dramatic decline in aviation traffic, rising fuel prices, and a pilots' strike.

Air France-KLM has also expressed interest in purchasing Portuguese airline TAP SA, which the local government put up for sale.