Air France-KLM Completes Acquisition of SAS AB Stake
Air France-KLM Finalizes Stake in SAS AB
The Air France-KLM Group has successfully completed the acquisition of a non-controlling stake in SAS AB.
This milestone marks a strategic advancement for the Air France-KLM Group, finalizing a 19.9% non-controlling stake in SAS AB's share capital following the receipt of necessary regulatory approvals.
Alongside this financial transaction, Air France-KLM and SAS have initiated comprehensive interline and codeshare agreements designed to enhance connectivity between their hubs and networks. These new agreements aim to boost reciprocal loyalty program benefits and will be activated starting September 1, 2024. Furthermore, SAS will officially join the SkyTeam alliance on the same date, further expanding joint offerings for Air France and KLM customers.
Significance of the Acquisition
Benjamin Smith, CEO of the Air France-KLM Group, expressed excitement regarding the completion of this strategic venture, stating, “We are pleased to have completed this strategic transaction. SAS will enhance the Group’s footprint in the Scandinavian markets. SAS, Air France and KLM customers will now have a larger number of destinations via codeshares. Skyteam will immediately gain a new strategic member.”
This transaction was completed as part of a wider consortium of investors that includes Castlelake L.P., Lind Invest ApS, and the Danish State. The consortium now holds an aggregate 86.4% stake in SAS AB, following a significant financial commitment of $1.2 billion USD, comprising an investment of $475 million USD in common shares and $725 million USD in senior secured convertible notes.
Financial Details of the Investment
The Air France-KLM Group contributed $144.5 million USD towards this acquisition, breaking it down to $109.5 million USD in common shares and $35 million USD in senior secured convertible notes. The consortium formulated specific agreements that allow for a potential increase in Air France-KLM’s stake that could lead to controlling ownership within two years, contingent upon specific regulatory conditions and SAS’s financial health.
This strategic investment aligns with Air France-KLM’s broader roadmap and has been incorporated into the Group’s financial trajectory for the coming periods, ensuring no adverse effects on its medium-term outlook.
Extensive Commercial Cooperation
With a sharp focus on commercial partnerships, Air France, KLM, and SAS have signed essential codeshare and interline agreements aimed at delivering greater travel options to their clientele. Starting September 1, 2024, Air France and KLM travelers will be able to access 33 new destinations in Northern Europe from SAS’s hubs located in Copenhagen, Oslo, and Stockholm. Conversely, SAS passengers will enjoy access to 33 new destinations across Europe linked to Air France and KLM's hubs in Paris Charles de Gaulle and Amsterdam Schiphol.
Significantly, these agreements offer reciprocal loyalty benefits through the Flying Blue and EuroBonus programs, allowing members to earn and redeem miles across the networks of SAS and the Air France-KLM Group.
SkyTeam Alliance Integration
September 1, 2024, will also mark SAS’s official entry into the SkyTeam alliance, which includes Air France and KLM as founding members. Eligible EuroBonus members will then be able to leverage enhanced services and benefits from the alliance, including exclusive SkyPriority services and access to lounges worldwide.
Investor Relations Contacts
For further inquiries, interested parties can reach out to the Investor Relations team:
Michiel Klinkers
Marouane Mami
Email: michiel.klinkers@airfranceklm.com
Email: marouane.mami@airfranceklm.com
Website: www.airfranceklm.com
Frequently Asked Questions
What is the significance of Air France-KLM's acquisition of SAS AB?
This acquisition enhances Air France-KLM's footprint in the Scandinavian markets and expands travel options for customers of both airlines.
When will the new codeshare agreements take effect?
The new codeshare and interline agreements will commence on September 1, 2024.
How much did Air France-KLM invest in SAS AB?
Air France-KLM invested $144.5 million USD in SAS AB as part of the acquisition.
What benefits will SAS customers receive from this acquisition?
SAS customers will gain access to numerous destinations across Europe and reciprocal loyalty program benefits starting September 1, 2024.
Will SAS join any alliances as part of the acquisition?
Yes, SAS will join the SkyTeam alliance on September 1, 2024, providing additional benefits to its customers.
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