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The Herald Scotland
04-07-2025
- Business
- The Herald Scotland
Air France-KLM deal with airline SAS a 'defining moment'
It declared that the move 'reflects the airlines' long-term commitment to building a stronger, more connected, and competitive SAS - firmly rooted in Scandinavia, with expanded reach and capabilities across Europe and beyond'. SAS faced financial challenges amid, and in the wake of, the coronavirus pandemic, before successfully completing a restructuring last summer. Anko van der Werff, president and chief executive of SAS, hailed the Air France-KLM deal as a 'defining moment' which brings 'stability', as well as a 'strong signal of confidence'. SAS (Scandinavian Airlines System) was established in 1946 with a consortium agreement between three airlines: Det Danske Luftfartselskab A/S of Denmark; Norway's Det Norske Luftfartselskap A/S; and Svensk Interkontinetal Lufttrafik AB, a Swedish airline. It has bases in Copenhagen, Oslo and Stockholm. Read more Air France-KLM today announced it will 'initiate proceedings to take a majority stake in SAS'. It currently holds a 19.9% stake in the Scandinavian carrier and since summer 2024 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. Air France-KLM said that, provided all the necessary conditions are met, it would fully acquire the stakes in SAS 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 under the proposed deal, which Air France-KLM aims to complete in the second half of next year subject to regulatory clearances. Air France-KLM said the value of its 'contemplated investment" in SAS would be determined at closing, based on SAS's latest financial performance including earnings before interest, tax, depreciation and amortisation (EBITDA) and net debt. Mr van der Werff said: 'Air France-KLM becoming the majority owner would mark a defining moment for SAS and a strong signal of confidence in the direction we're heading.' He added: 'It brings not just stability but will also allow for deeper industrial integration and the full backing of one of the world's leading airline groups, once regulatory approval has been obtained. Together, we will be better positioned to deliver greater value to our customers, our colleagues, and the wider region.'
The Sun
04-07-2025
- Business
- The Sun
Air France-KLM to buy major stake in SAS
PARIS: Air France-KLM plans to increase its stake in Scandinavian airline SAS to 60.5%, the latest step towards consolidating Europe's fragmented airline sector as carriers seek to strengthen their position against rivals. The French airline group said yesterday it intended to increase its stake from 19.9% currently by acquiring the stakes held by top shareholder Castlelake and Lind Invest. The purchase, subject to regulatory clearances, is expected to close in the second half of 2026, Air France-KLM said. The value of the investment would be determined at closing, based on SAS's latest financial performance, including core earnings and net debt, added the company. The Scandinavian airline welcomed the announcement, calling it a 'defining moment' that marked Air France-KLM's commitment to strengthen SAS. 'It brings not just stability but will also allow for deeper industrial integration and the full backing of one of the world's leading airline groups,' SAS CEO Anko van der Werff said. 'Together, we will be better positioned to deliver greater value to our customers, our colleagues, and the wider region.' SAS said it would continue to invest in its fleet and network. In 2023, Air France-KLM said it would invest about US$144.5 million (RM610 million) for its initial SAS stake, boosting its presence in Sweden, Denmark and Norway with the option to become a controlling shareholder after a minimum of two years, subject to conditions. SAS exited from Chapter 11 bankruptcy protection in August last year. Air France-KLM CEO Ben Smith told Reuters in March that the company was looking to raise its stake in SAS, as the carrier was meeting the necessary milestones, including integration into the SkyTeam airline alliance, of which Air France-KLM is also a member. The two carriers have already had a commercial cooperation since summer 2024. Control of SAS would allow Air France-KLM to expand in the Scandinavian market and create additional value for shareholders, Air France-KLM said in a statement. '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,' said Smith. The deal comes as executives seek more consolidation in Europe's fragmented airline industry, which they say is needed to compete with US and Middle Eastern rivals. Earlier this year, Germany's Lufthansa bought a 41% stake in Italy's ITA Airways and a stake in Air Baltic. The Portuguese government is looking to privatise its national carrier TAP Lufthansa and Air France are also in talks about buying a stake in Spanish airline Air Europa. – Reuters
Euronews
04-07-2025
- Business
- Euronews
Air France-KLM to take majority control of Scandinavian airline SAS
Air France-KLM said on Friday that it plans to increase its stake in Scandinavian airline SAS to 60.5%, up from around 20% currently. The additional shares will be acquired from Castlelake and Lind Invest, for an amount that will be determined by SAS's financial performance at closing. The sale is expected to be completed in the second half of 2026, subject to regulatory approval. The European Commission is likely to scrutinise the merger with care to ensure that it doesn't threaten fair competition. The Commission has already shown some opposition to airline consolidation. A merger between Ryanair and Aer Lingus was blocked on several occasions, while IAG abandoned plans to take over Air Europa due to expectations that the deal wouldn't receive the regulatory green light. Despite this, airlines in Europe continue to seek consolidation options in order to compete with overseas rivals, particularly from the US and the Middle East. Lufthansa, for example, has recently taken a stake in ITA Airways and airBaltic. 'As global interest in Scandinavia continues to grow, we believe this consolidation strengthens SAS' ability to connect Scandinavia with the world — and the world with Scandinavia — by positioning Copenhagen as our global hub for the region, while continuing to uphold strong and strategic operations in both Oslo and Stockholm,' said Anko van der Werff, president and CEO of SAS. Benjamin Smith, CEO of Air France-KLM, said: '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. This operation would benefit our customers and all Scandinavians who would enjoy enhanced connectivity.' Air France-KLM took an initial stake in SAS in 2023 as the struggling Scandinavian airline underwent a two-year restructuring process following its bankruptcy filing. The Danish government also holds a 26.4% stake in SAS and will retain its board seats if the sale to the Franco-Dutch carrier goes through. SAS has a fleet of 138 aircraft, carried more than 25 million passengers last year, and flies to over 130 destinations.
New Straits Times
04-07-2025
- Business
- New Straits Times
Air France-KLM to take majority stake in Scandinavian airline SAS
PARIS: Air France-KLM plans to increase its stake in Scandinavian airline SAS to 60.5 per cent, the latest step towards consolidating Europe's fragmented airline sector as carriers seek to strengthen their position against rivals. The French airline group said on Friday it intended to increase its stake from 19.9 per cent currently by acquiring the stakes held by top shareholder Castlelake and Lind Invest. The purchase, subject to regulatory clearances, is expected to close in the second half of 2026, Air France-KLM said. The value of the investment would be determined at closing, based on SAS's latest financial performance, including core earnings (EBITDA) and net debt, added the company. The Scandinavian airline welcomed the announcement, calling it a "defining moment" that marked Air France-KLM's commitment to strengthen SAS. "It brings not just stability but will also allow for deeper industrial integration and the full backing of one of the world's leading airline groups," SAS CEO Anko van der Werff said. "Together, we will be better positioned to deliver greater value to our customers, our colleagues, and the wider region." SAS said it would continue to invest in its fleet and network. In 2023, Air France-KLM said it would invest about US$144.5 million for its initial SAS stake, boosting its presence in Sweden, Denmark and Norway with the option to become a controlling shareholder after a minimum of two years, subject to conditions. SAS exited from Chapter 11 bankruptcy protection in August last year. Air France-KLM CEO Ben Smith told Reuters in March that the company was looking to raise its stake in SAS, as the carrier was meeting the necessary milestones, including integration into the SkyTeam airline alliance, of which Air France-KLM is also a member. The two carriers have already had a commercial cooperation since summer 2024. Control of SAS would allow Air France-KLM to expand in the Scandinavian market and create additional value for shareholders, Air France-KLM said in a statement. "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," said Smith. The deal comes as executives seek more consolidation in Europe's fragmented airline industry, which they say is needed to compete with U.S. and Middle Eastern rivals. Earlier this year, Germany's Lufthansa bought a 41 per cent stake in Italy's ITA Airways and a stake in Air Baltic. The Portuguese government is looking to privatise its national carrier TAP Lufthansa and Air France are also in talks about buying a stake in Spanish airline Air Europa. SAS has 138 aircraft in service and carried more than 25 million passengers last year, generating revenues of 4.1 billion euros (US$4.8 billion). Air France-KLM group would have a majority of seats on the board of directors, while the Danish state will keep its 26.4 per cent stake in SAS and its seats on the board.
Time of India
01-07-2025
- Business
- Time of India
SAS to buy 55 planes from Brazil's Embraer for $3.95 bn
Scandinavian carrier SAS said Tuesday that it would buy up to 55 aircraft from Brazilian manufacturer Embraer for 25 billion kroner ($3.95 billion). "We've signed a contract for 55 Embraer E195-E2" planes, chief executive Anko van der Werff told a press conference, adding that the company would buy 45 planes in a first step, with an option for 10 more. After years of financial struggles due in part to the effects of the Covid-19 pandemic on travel, the airline was placed under Chapter 11 bankruptcy protection in July 2022 and embarked on a major cost-cutting plan. It completed its restructuring in August 2024. The first Embraer planes are expected to be delivered in 2027 and will mainly be used on routes in the Nordic region. Live Events "It's like a renaissance," Van der Werff said of the airline's biggest investment since 1996. The planes are considered more fuel efficient and quieter than those currently in the carrier's fleet. SAS's main owners are the Danish and Swedish states as well as Air France-KLM.
