Latest news with #AirFranceKLM
Khaleej Times
14-07-2025
- Business
- Khaleej Times
Middle East, India key strategic markets for Air France-KLM
The Middle East remains a key market for Air France-KLM, and the European carrier is taking steps to expand capacity here. 'Overall, the aviation sector in UAE is experiencing growth. For Air France and KLM, we've good load factors and positive trends, which has enabled us to increase capacity in Dubai, with the deployment of the Boeing 777s. There are opportunities for further expansion in the region, our willingness to add more capacity from Dubai is strong, however, we are currently facing constraints, as the slots are limited,' Stefan Gumuseli, Air France-KLM's general manager for India and the Middle East, told Khaleej Times in an interview. Currently, Air France and KLM serve eight cities across Middle East and India, operating 89 weekly flights. 'In the Middle East, our network includes Beirut, Cairo, Dubai, Dammam, and Riyadh and In India, we operate from Bengaluru, Delhi, and Mumbai and soon Hyderabad. Air France and KLM offer seamless connections for both business and leisure travelers, with smooth access for our customers from Middle East and India to over 300 destinations worldwide through our hubs in Amsterdam Schiphol and Paris, Charles de Gaulle,' Gumuseli said. The Middle East is witnessing a positive growth in aviation, further accelerated by ambitious initiatives such as Saudi Arabia's Vision 2030, which aims to position the region as a key global hub. 'Our operations are well-structured to meet this growing demand,' Gumuseli said. In the region, the airline group is expanding its network in the Middle East and India. 'In the Middle East, our codeshare partnership with Saudia significantly enhances connectivity between France, the Netherlands, and Saudi Arabia. This partnership was further strengthened through a strategic MoU last year, which aims to further improve connectivity between Saudi Arabia (Dammam, Jeddah, Riyadh) Paris, Amsterdam & beyond. In return, Air France and KLM will also gain access to Saudia's extensive network, offering passengers more travel options,' Gumuseli said. In India, the group has a successful codeshare partnership with IndiGo. With this partnership, Air France and KLM customers have access to over 30 destinations in India. This partnership opens the opportunity for IndiGo customers to connect to the vast global network of Air France and KLM,' Gumuseli said. Fleet renewal is one of the key aspects of Air France-KLM's strategy. The group has been investing 2 billion euros per year in the renewal of its fleet. In September 2023, the group placed an order for 50 Airbus A350 aircraft, with purchase rights for an additional 40. These aircraft, comprising both A350-900 and A350-1000 models, are scheduled for delivery between 2026 and 2030. This move aims to replace previous generation aircraft i.e. Airbus A330s and older Boeing 777s, positioning the Ar France-KLM as the world's largest operator of the Airbus A350 family. 'The A350's advanced technology offers 25 per cent better fuel efficiency and a 40 per cent reduction in noise compared to previous generations, aligning with our sustainability goals. By 2030, the share of new generation aircraft in the Group's fleet is expected to reach 80 per cent,' Gumuseli said. The Middle East is a strategically important region for the Air France-KLM Group. It serves as a key hub for both passenger and cargo operations. Air France and KLM share a rich history with the UAE, having operated in the region for over 50 years. 'Over the years, we've seen increased demand, which has led us to increase our capacity, including the deployment of the Boeing 777 to Dubai. This allows us to meet the growing needs of both leisure and business travellers,' Gumuseli said. One of the highlights for the Dubai market is the Air France La Première cabin, available on only 10 destinations worldwide, with Dubai being one of these exclusive locations. 'Our presence in the region is strong, with services connecting major cities such as Dubai, Riyadh, Dammam, Beirut and Cairo to our European hubs in Paris and Amsterdam. We are continuously enhancing our footprint in the Middle East, particularly in Saudi Arabia, where we have recently launched a new direct service between Riyadh and Paris-Charles de Gaulle from May 20. Air France will operates five weekly flights. Riyadh and Dammam are already being served by KLM. With the launch of Air France operations, our customers can experience the best of both brands. Transavia, the subsidiary of Air France – KLM also has a prominent position in the region. Transavia connects customers from many cities in the region including Beirut, Cairo, Jeddah and soon the holy city of Madinah, Gumuseli said.
Travel Weekly
07-07-2025
- Business
- Travel Weekly
Air France-KLM proposes to acquire a controlling stake in SAS
Air France-KLM has begun a process to take a controlling stake in fellow SkyTeam Alliance member Scandinavian Airlines (SAS). If the arrangement receives regulatory approval, Air France-KLM hopes to close the transaction in the second half of 2026. Air France-KLM took a 19.9% stake in SAS as part of the financial restructuring package that ushered the Sweden-headquartered airline out of Chapter 11 bankruptcy last summer. Under the new takeover agreement, Air France-KLM would acquire the SAS stakes currently held by global investment firm Castlelake and Danish company Lind Invest, leaving it with 60.2% of the Scandinavian carrier. The Danish state would retain 26.4% ownership of SAS and a seat on the board. The purchase price would be determined at closing, based on SAS's valuation. SAS currently codeshares and interlines with Air France-KLM. SAS joined SkyTeam last September, jumping over from the Star Alliance as Air France-KLM became a large shareholder. "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," Air France-KLM said in a statement. SAS said the move reflects a broader trend toward airline consolidation. SAS called joining Air France-KLM, "a step that is essential to ensuring long-term competitiveness for European carriers in an increasingly globalized market."
Bloomberg
07-07-2025
- Business
- Bloomberg
KLM to Lend Pilots to Dutch Air Force for Fighter Jet Duties
Dutch flag carrier KLM agreed to lend pilots to the country's air force, increasing the airline's cooperation with the defense ministry after criticism it was poaching military aviators. The airline, a unit of Air France-KLM, will initially make five full-time pilot slots available to fly F-35s for the Dutch Air Force as reservists, according to a press release on Monday. The company pledged to 'intensify cooperation in other areas as well.'
Skift
04-07-2025
- Business
- Skift
We're Not Becoming ‘Air France-KLM Lite,' SAS CEO Tells Skift
Anko van der Werff has long championed consolidation. With Air France-KLM poised to take majority control, he's getting his wish while (hopefully) keeping the airline's Scandinavian soul. Anko van der Werff is having a wild week. On Tuesday, the SAS CEO signed a multi-billion dollar deal for 45 new Embraer aircraft – the company's largest direct order in decades. Today, he was shaking hands with Ben Smith as Air France-KLM prepared to triple its stake in the Scandinavian carrier. Speaking to Skift from Stockholm, van der Werff described Friday's announcement as both strategic and symbolic: 'This is not marketing, it's not boasting, but this is a historic day for us,' he said. 'We've been interested and open to consolidation and finally after many years – in fact, a few decades probably – SAS is succeeding in consolidating.' The deal, which remains subject to regulatory approval, will see AF-KLM increase its shareholding in SAS to 60.5%, enabling much deeper integration between the two companies. The Franco-Dutch group will acquire existing SAS stakes held by asset management firms Castlelake and Lind Invest. Investment as a Validation AF-KLM currently owns a 19.9% shareholding in SAS. Van der Werff said the move to more than 60% shows that the Scandinavian airline is on the right track: 'It is a validation of the transformation journey we have been on – it feels good.' The SAS chief laid out the enormous opportunities available if – or more likely when – the majority holding is confirmed. 'At 19.9% there's nothing you can do together beyond the normal interline and codeshare agreements that you can have with any other airline,' he explained. 'The 19.9% gave them a seat on the board, but commercially speaking for things like joint purchasing, fleet, network, schedule, and pricing, you're still completely two independent airlines.' Pending approval from the European Commission, the tie-up will unlock a broad range of synergies including joint pricing, fleet alignment, loyalty, and corporate contracting. SAS also hopes to become part of the transatlantic joint venture alongside Air France-KLM, Delta, and Virgin Atlantic. A Reflection of Performance The terms of the initial consortium deal signed last summer allowed AF-KLM to ultimately own a controlling stake. Van der Werff attributed the acceleration in shareholding to SAS's stronger-than-expected performance post-restructuring. 'We are performing better than planned. It sometimes feels uncomfortable as an airline CEO to say that things are going well, but within that context, we are doing well. I think Air France-KLM... liked what they saw and decided to move earlier once Castlelake and Lind offered their shares.' SAS' Anko van der Werff and AF-KLM's Ben Smith. credit: air france-klm Van der Werff joined SAS exactly four years ago when the airline was still in financially stormy skies. His mission was clear, but the path was less certain. Asked if he expected to be at this stage of the turnaround by the summer of 2025, the CEO revealed his hope was actually to get here around a year ago. The move is more than just a financial or operational shift; it's the culmination of a strategic vision Van der Werff's held since joining the airline amid the turbulence of 2021: 'I've always had this visualization that SAS needs to be part of something bigger,' he said. 'That was the philosophical, spiritual, whatever-you-want-to-call-it direction that I had.' Moving Faster Together While Air France-KLM is set to become the majority owner, the Danish government will retain a significant stake at around 26.5%. It will also continue to have board representation. Van der Werff welcomed Denmark's continued involvement but made clear that governance decisions lie with the new ownership. 'What I can say is it's already been very constructive to work in this environment over the last year since the restructuring. What I'm happy with is that [the consortium] owners have taken this decision and done what is right for the company. We'll probably move faster in that the 19.9% [AF-KLM existing stake] doesn't give you much. If you really want to go forward with the synergies, then you have to get into a controlling stake environment.' The Fate of SAS' Scandinavian Soul As well as comments in market filings on Friday, van der Werff took to LinkedIn for a more personal take on the proposed deal. Perhaps anticipating concerns about SAS's future identity, he wrote: "Make no mistake, SAS will remain proudly Scandinavian at heart, in look, and in feel." Pressed by Skift on what this would mean in practice, the CEO emphasized that SAS's identity would remain intact: 'If there was any concern about if the brand will still exist after this – it will. Will we still serve a distinctly Scandinavian product? We will. "Air France-KLM is not in the process of buying us to make an 'Air France-KLM Lite'. They bought us because we know Scandinavia. We are Scandinavians. It would be value destruction if you took the loyalty of 8 million EuroBonus members completely away and made it into something that we're not,' he added. Before returning to Europe, the industry veteran held senior leadership roles at Aeromexico, and Qatar Airways, and was most recently CEO of Colombia's Avianca. Van der Werff believes the deal reflects a wider structural shift in European aviation. 'Europe is lagging behind,' he said, citing his experience working in other global markets. 'It's still too fragmented and it needs a second phase [of consolidation]. I hope this contributes to that.' Air France-KLM Now Owns 20% of SAS: 3 Big Changes to Watch Air France-KLM's significant stake is more than just a strategic move—it's the latest stage of deepening consolidation in Europe's airline industry. With SAS defecting to the SkyTeam alliance and expanding cooperation with new partners, expect tighter network integration in the months ahead. Read More What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. Read the full methodology behind the Skift Travel 200.
Free Malaysia Today
04-07-2025
- Business
- Free Malaysia Today
Air France-KLM looking to take controlling stake in SAS airline
SAS recorded revenue of US$4.8 billion in 2024, carrying about 25 million passengers. (EPA Images pic) PARIS : The Air France-KLM airline group today said that it 'will initiate proceedings' to acquire a majority stake in Scandinavian airline SAS, of which it is already a major shareholder. 'Air France-KLM intends to increase its stake in SAS's share capital, from 19.9% currently to 60.5%, via a full acquisition of the stakes held by Castlelake and Lind Invest,' the French-Dutch group said. Air France-KLM acquired its initial stake in the summer of 2024 after the Scandinavian airline had been weakened by the Covid pandemic. The airlines began some code-sharing and joint marketing, including bringing SAS into their SkyTeam alliance. Air France-KLM has never hidden its intention to increase its stake in SAS. 'This contemplated transaction reflects the successful turnaround of SAS and the positive results generated by the commercial cooperation initiated in 2024,' Air France-KLM said, adding that it intends to close the operation by the second half of 2026 if it can overcome regulatory hurdles. It said that the value of the contemplated investment would be determined at closing, based on SAS's latest financial performances. Air France-KLM's initial 19.9% investment in SAS was valued at US$144.5 million. In case of success, Air France-KLM said that SAS would become a subsidiary of the group, which would allow them to 'fully unlock their synergy potential via a comprehensive integration in all areas of business.' Air France-KLM would hold the majority of the seats on SAS's board. SAS had revenue of €4.1 billion (US$4.8 billion) in 2024, carrying some 25 million passengers. Air France-KLM, meanwhile, generated revenue of €31.5 billion and carried some 98 million passengers.
