SINGAPORE, 30 August 2024: Air France-KLM Group confirmed Wednesday it has completed the acquisition of a 19.9% non-controlling stake in SAS’s share capital, opening the door to extensive commercial cooperation, which will begin on 1 September.
In parallel to the financial transaction and as previously announced, Air France-KLM and SAS have signed far-reaching interline and codeshare agreements to connect their hubs and networks.
These agreements, which cover reciprocal loyalty programme benefits, will enter into force as early as 1 September 2024. On the same day, SAS will join the Skyteam alliance, of which Air France and KLM are founding members.
The Air France-KLM Group CEO Benjamin Smith said: “We are pleased to have completed this strategic transaction. SAS will enhance the group’s footprint in the Scandinavian markets. SAS, Air France and KLM customers will now have a larger number of destinations via codeshares. Skyteam will immediately gain a new strategic member.”
The Air France-KLM Group concluded this transaction as part of a consortium of investors, including Castlelake LP on behalf of certain funds or affiliates, Lind Invest ApS, and the Danish State.
The consortium members now effectively hold an aggregate 86.4% stake in the share capital of the reorganised SAS AB (exclusive of the recovery by the Danish State in its capacity as a creditor of SAS and according to SAS’s restructuring plans), having invested USD1.2 billion in the company by subscribing for USD475.0 million of common shares and purchasing USD725.0 million of senior secured convertible notes.
The Air France-KLM Group invested USD144.5 million in SAS by subscribing to USD109.5 million of common shares and purchasing USD35.0 million of senior secured convertible notes.
Specific provisions have been agreed upon between the consortium members, under which Air France-KLM’s stake could be increased. Subject to regulatory conditions and financial performance, it may become a controlling shareholder after at least two years.
This investment is a component of Air France-KLM’s strategic roadmap. It was already considered in the group’s financial trajectory for 2024 and has no impact on its medium-term outlook.
Commercial cooperation underway
As announced by the Air France-KLM Group on 11 July 2024, Air France, KLM, and SAS have signed codeshare and interline agreements to provide their respective customers with extended travel options.
Beginning 1 September 2024, Air France and KLM customers will gain access to 33 destinations in Northern Europe beyond SAS’s hubs in Copenhagen, Oslo and Stockholm. SAS customers will gain access to 33 destinations in Europe beyond Air France and KLM’s hubs at Paris Charles de Gaulle Airport and Amsterdam Schiphol Airport.
These agreements also cover reciprocal loyalty programme benefits for Flying Blue and EuroBonus, enabling members to earn and spend Miles/Points on flights operated by SAS and the Air France-KLM Group’s airlines.
In addition, on 1 September 2024, SAS will join the SkyTeam alliance, of which Air France and KLM are founding members. From that date, eligible EuroBonus members will be able to enjoy SkyTeam services and benefits, including SkyPriority and lounge access worldwide.
