The Air France-KLM Group has significantly bolstered its position in the Scandinavian market by acquiring a 19.9% stake in SAS AB. This strategic move, completed in August 2024, aligns with the Group’s broader expansion plans and strengthens its ties to Northern Europe.
As part of a consortium that also included Castlelake L.P., Lind Invest ApS, and the Danish State, the Air France-KLM Group invested $144.5 million USD in SAS AB.
This investment gives the Group a significant stake in the company and the potential to increase its ownership in the future.
The acquisition is consistent with the Group’s strategic roadmap and has no impact on its medium-term outlook. By investing in SAS AB, the Group aims to expand its footprint in the Scandinavian markets and provide its customers with more travel options.
Codeshare and Interline Agreements
In addition to the financial transaction, Air France-KLM and SAS have signed extensive codeshare and interline agreements. These agreements will allow customers to connect their hubs and networks more easily, providing them with a wider range of destinations and travel options.
Beginning September 1, 2024, Air France and KLM customers will gain access to 33 destinations in Northern Europe beyond SAS’s hubs in Copenhagen, Oslo, and Stockholm.
Similarly, SAS customers will be able to travel 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 program benefits for Flying Blue and EuroBonus. This means that customers can earn and spend miles on flights operated by SAS and the Air France-KLM Group’s airlines.
SAS and SkyTeam Alliance
Furthermore, on September 1, 2024, SAS will join the SkyTeam alliance, of which Air France and KLM are founding members. This will provide SAS customers with access to additional benefits and services, including SkyPriority and lounge access around the world.
The Air France-KLM Group’s investment in SAS AB represents a significant step toward strengthening its position in the Nordic region.
By combining the strengths of these airlines, the Group can offer customers a more comprehensive network of destinations, improved connectivity, and enhanced loyalty program benefits.
This strategic move is expected to benefit both the Group and its customers. With a wider range of destinations and improved connectivity, customers will have more options for their travel plans. Additionally, the enhanced loyalty program benefits will make travel more rewarding for frequent flyers.
Summary
In conclusion, the Air France-KLM Group’s acquisition of a stake in SAS AB is a strategic move that will benefit both the Group and its customers. By expanding its presence in the Nordic region and strengthening its partnerships with other airlines, the Group is positioning for further growth and success in the global aviation market.
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