Latest news with #Franco-Dutch
New York Post
5 days ago
- Business
- New York Post
Air France-KLM to take majority stake in Scandinavian airline SAS
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 Franco-Dutch airline group said on Friday it intended to increase its stake from 19.9% currently by acquiring the stakes held by top shareholders Castlelake and Lind Invest. The purchase, subject to regulatory clearances, is expected to close in the second half of 2026, Air France-KLM said. Advertisement 3 Air France-KLM is looking to increase it's stake in Scandinavian carrier SAS to 60.5% from 19.9%. EPA The value of the investment would be determined at closing, based on SAS's latest financial performance, including core earnings and net debt, the company said. It declined to give details on those metrics. Air France-KLM expects to generate 'three-digit million' euros in synergies from raising its SAS stake, finance chief Steven Zaat told analysts on a call. Advertisement Zaat said the deal would be funded from cash or a 'plain vanilla bond' and would not impact the drive to reduce the group's hybrid debt. 'We have ample room for it,' he said. SAS welcomed Air France-KLM's announcement. 'European consolidation had to happen further, and we're very happy to be part of that,' SAS CEO Anko van der Werff told Danish broadcaster TV2. 3 The Danish government will keep its 26.4% stake in SAS and its seats on the board. REUTERS Advertisement 'In the current setup where Air France-KLM is a 19.9% shareholder, they're still a competitor,' he said. 'With the new stake, going above 50%, we can really tap into all of those synergies and offer those benefits to customers.' SAS said it would continue to invest in its fleet and network. In 2023, Air France-KLM said it would invest about $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 2024. Advertisement 3 Air France-KLM CEO Ben Smith. Bloomberg via Getty Images 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 Air France-KLM CEO Ben 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. SAS has 138 aircraft in service and carried more than 25 million passengers last year, generating revenues of 4.1 billion euros ($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% stake in SAS and its seats on the board.
Irish Examiner
6 days ago
- Business
- Irish Examiner
Air France-KLM to take majority stake in Scandinavian carrier SAS
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 Franco-Dutch airline group said on Friday it intended to increase its stake from 19.9% currently by acquiring the stakes held by top shareholders 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, the company said. It declined to give details on those metrics. SAS flies to Dublin from Oslo, Copenhagen, and Stockholm. Air France flies from Cork and Dublin to Paris. KLM flies to Amsterdam from Cork and also flies transatlantic to Dublin, with 142 weekly flights from the capital. Air France-KLM expects to generate "three-digit million" euro in synergies from raising its SAS stake, Air France-KLM finance chief Steven Zaat told analysts on a call. Mr Zaat said the deal would be funded from cash or a "plain vanilla bond" and would not impact the drive to reduce the group's hybrid debt. "We have ample room for it," he said. Air France-KLM shares were flat in early trading. JPMorgan analysts said there were reasons to be positive about the deal. "SAS offers deeper access to a GDP-rich region in Scandinavia, there will now be an opportunity to unlock cost synergies as SAS becomes a subsidiary of the group," they said in a note, adding that "industry consolidation should also be viewed positively for the whole sector, even if not game-changing in terms of size." SAS welcomed Air France-KLM's announcement. "European consolidation had to happen further, and we're very happy to be part of that," SAS CEO Anko van der Werff told Danish broadcaster TV2. "In the current setup where Air France-KLM is a 19.9% shareholder, they're still a competitor," he said. "With the new stake, going above 50%, we can really tap into all of those synergies and offer those benefits to customers." SAS said it would continue to invest in its fleet and network. In 2023, Air France-KLM said it would invest about $144.5m (€122.7m) 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. 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 Air France-KLM chief executive Ben 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 Spain's Air Europa. SAS has 138 aircraft in service and carried more than 25 million passengers last year, generating revenues of €4.1bn. Air France-KLM group would have a majority of seats on the board of directors, while the Danish state will keep its 26.4% stake in SAS and its seats on the board. Reuters
Euronews
6 days ago
- 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.
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Business Standard
13-06-2025
- Business
- Business Standard
Air France-KLM CEO backs Boeing 787 after Air India crash in Ahmedabad
The head of Air France-KLM voiced confidence in the Boeing 787 Dreamliner as he expressed condolences to Air India and those affected by the deadly crash of a London-bound passenger jet in Ahmedabad on Thursday. "We still have confidence in the airplane; we have 34 787s in the KLM fleet," Ben Smith, CEO of the Franco-Dutch airline group, told the Paris Air Forum conference on Friday, noting that the tragic accident is under investigation. Speaking at the same event, Airbus CEO Guillaume Faury also expressed condolences to families of victims of the crash, the worst aviation disaster in a decade. India's air accident agency is investigating the cause of the crash which killed more than 240 people and safety experts have cautioned it is too early to speculate on the causes. India's aviation regulator on Friday directed Air India to carry out safety inspections on its Boeing 787-8/9 fleet, an order showed on Friday.
Yahoo
13-06-2025
- Business
- Yahoo
Air France-KLM CEO voices confidence in Boeing 787
PARIS (Reuters) -The head of Air France-KLM voiced confidence in the Boeing 787 Dreamliner as he expressed condolences to Air India and those affected by the deadly crash of a London-bound passenger jet in Ahmedabad on Thursday. "We still have confidence in the airplane; we have 34 787s in the KLM fleet," Ben Smith, CEO of the Franco-Dutch airline group, told the Paris Air Forum conference on Friday, noting that the tragic accident is under investigation. Speaking at the same event, Airbus CEO Guillaume Faury also expressed condolences to families of victims of the crash, the worst aviation disaster in a decade. India's air accident agency is investigating the cause of the crash which killed more than 240 people and safety experts have cautioned it is too early to speculate on the causes. India's aviation regulator on Friday directed Air India to carry out safety inspections on its Boeing 787-8/9 fleet, an order showed on Friday. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
