Air France-KLM Seeks Majority Stake in Scandinavian Airline SAS

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4 days ago

In a strategic move to strengthen its presence in the European market, the Franco-Dutch group Air France-KLM announced on Friday its intention to acquire a majority stake in Scandinavian airline SAS. This decision marks a key step in the consolidation of the European aviation industry, a sector that, according to experts, still needs further consolidation to compete with airlines from the U.S. and the Middle East.

Air France-KLM’s Expansion in Scandinavia

Air France-KLM, which currently holds a 19.9% stake in SAS, plans to increase its share to 60.5%. This acquisition would be realized by purchasing the stakes of SAS’s main shareholders, Castlelake and Lind Invest. Although the agreement is subject to regulatory approvals, it is expected to close by mid-2026.

According to a statement from Air France-KLM, the investment value will be determined at the time of closing, based on SAS’s most recent financial results, including EBITDA (earnings before interest, taxes, depreciation, and amortization) and net debt. While specific details about these metrics have not been disclosed, the airline group anticipates generating “hundreds of millions” of euros in cost synergies from this transaction.

Why This Acquisition Is a Strategic Opportunity

The purchase of SAS will allow Air France-KLM to gain access to Scandinavia, a region with a high GDP. The acquisition will enable the Franco-Dutch group to unlock significant cost synergies and, more importantly, secure full control over the Scandinavian airline, maximizing benefits for both shareholders and customers.

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This move not only reflects an effort to consolidate the group’s position in a competitive market but also aligns with industry trends, where larger players are merging with or acquiring other airlines to expand their reach.

Impact on SAS and the European Industry

SAS has responded positively to the news. The airline’s CEO, Anko van der Werff, expressed satisfaction with the agreement, stating that consolidation in Europe is necessary. “In the current context, where Air France-KLM is merely a competitor with a 19.9% stake, this new majority stake exceeding 50% will allow us to leverage all possible synergies and deliver greater benefits to our customers,” he said.

Additionally, the Scandinavian airline will continue investing in its fleet and route network, ensuring that the integration with Air France-KLM yields not only financial benefits but also service improvements. With a fleet of 138 aircraft and over 25 million passengers carried in 2024, SAS has demonstrated a successful recovery after emerging from bankruptcy in August 2024.

Benefits for Customers

Customers will also benefit from Air France-KLM’s increased stake in SAS. As the two airlines strengthen their cooperation, travelers will enjoy more options, greater connectivity, and potential cost reductions on flights between Nordic countries and other international destinations. Synergies in operations, routes, and fleets could result in a smoother and more efficient travel experience.

The Consolidation of the European Airline Industry: The Way Forward?
This agreement is not an isolated case. In recent years, there has been a growing trend of consolidation in the European airline sector. Earlier this year, the Lufthansa Group acquired a 41% stake in ITA Airways, another in Air Baltic, and is currently in talks to purchase a stake in Air Europa. The Portuguese government also aims to privatize its national carrier, TAP. These moves highlight a clear desire among key aviation players to strengthen their positions in a still-fragmented European market.

For Air France-KLM, gaining control of SAS will significantly expand its influence in Scandinavian countries. This will translate into a larger market share and the potential for increased revenue and operational efficiency. Industry analysts agree that while this acquisition is not transformative in terms of size, it is an important step toward sector consolidation.