Air France KLM Acquires Majority Stake in SAS, Strengthening Competitive Positioning
Air France KLM increases ownership in SAS to 60.5% in a strategic acquisition.
Key Points
- • Air France KLM raises its stake in SAS from 19.9% to 60.5%.
- • The investment is approximately $144.5 million (€123 million).
- • This move strengthens Air France KLM's position against competitors like Lufthansa and IAG.
- • SAS is recognized for its strong recovery and leading punctuality.
In a pivotal move for the aviation sector, Air France KLM has announced its intention to acquire a majority stake in Scandinavian Airlines (SAS), increasing its ownership from 19.9% to 60.5%. This acquisition, amounting to approximately $144.5 million (€123 million), involves the purchase of remaining shares from Castlelake and Lind Invest.
The strategic investment is positioned to reinforce Air France KLM's competitive stance against major airline competitors such as Lufthansa and International Airlines Group (IAG), which operates British Airways and Iberia. The deal is in line with a prior agreement that allowed Air France KLM to incrementally raise its stake in SAS as it saw fit.
Ben Smith, the CEO of Air France KLM, expressed optimism about SAS’s ongoing recovery, emphasizing its recognition for having the best punctuality in the world. This acquisition is viewed as a significant consolidation of Air France KLM’s influence within the airline industry, enhancing its operational strategy and positioning in the crowded European aviation market.