SAS, the Scandinavian flag carrier, will switch from the United-led Star Alliance to the Delta/AirFrance/KLM-led SkyTeam in a deal with also gives AirFrance/KLM a nearly 20% stake in ownership of the bankrupt airline. The deal provides about €1.2 billion in bankruptcy exit financing.
In a deal announced earlier in the week, U.S. capital firm Castlelake will take a stake of about 32%, Air France-KLM will hold about 20% and the Danish state will hold about 26%. The airline, which was originally owned by the three Scandinavian states, will continue to operate as an independent brand, but will be able to coordinate routes and schedule with its partner airlines, much as Air France and KLM do now.
The deal is expected to close in the first or second quarter of 2024, pending approval from EU authorities. No date has been set for the alliance shift or how loyalty programs and the like will be coordinated.
The move is only one of a number of recent or planned airline consolidations in Europe, with Lufthansa in the final stages of acquiring 41% of Italy’s ITA Airways, and bids being sought by the Portuguese government for private buyers for TAP Portugal. Lufthansa, AirFrance/KLM and International Airlines Group are all expected to bid.
