Air France-KLM Completes Acquisition of Stake in SAS AB
The Air France-KLM Group has successfully finalized the acquisition of a non-controlling stake in SAS AB.
This achievement represents a significant step forward for the Air France-KLM Group, as it secures a 19.9% non-controlling interest in SAS AB's share capital, having received all necessary regulatory approvals.
In conjunction with this financial transaction, Air France-KLM and SAS have launched extensive interline and codeshare agreements aimed at improving connectivity between their respective hubs and networks. These agreements will enhance reciprocal loyalty program benefits and are set to take effect on September 1, 2024. Additionally, SAS will officially become a member of the SkyTeam alliance on the same date, further enriching the offerings available to Air France and KLM customers.
Importance of the Acquisition
Benjamin Smith, CEO of the Air France-KLM Group, expressed his enthusiasm about the completion of this strategic initiative, stating, “We are delighted to have finalized this strategic transaction. SAS will strengthen the Group’s presence in the Scandinavian markets. Customers of SAS, Air France, and KLM will benefit from a broader range of destinations through codeshares. SkyTeam will gain a valuable new member.”
This acquisition was part of a larger consortium of investors, which includes Castlelake L.P., Lind Invest ApS, and the Danish State. The consortium now collectively holds an 86.4% stake in SAS AB, following a substantial financial commitment of $1.2 billion USD, which includes an investment of $475 million USD in common shares and $725 million USD in senior secured convertible notes.
Investment Financial Details
The Air France-KLM Group contributed $144.5 million USD towards this acquisition, which breaks down to $109.5 million USD in common shares and $35 million USD in senior secured convertible notes. The consortium has established specific agreements that may allow Air France-KLM to increase its stake, potentially leading to controlling ownership within two years, depending on certain regulatory conditions and the financial stability of SAS.
This strategic investment aligns with Air France-KLM’s broader plans and has been integrated into the Group’s financial outlook for the upcoming periods, ensuring that it does not negatively impact its medium-term projections.
Broad Commercial Collaboration
Focusing on commercial partnerships, Air France, KLM, and SAS have entered into essential codeshare and interline agreements designed to provide enhanced travel options for their customers. Starting September 1, 2024, travelers with Air France and KLM will be able to access 33 new destinations in Northern Europe from SAS’s hubs in Copenhagen, Oslo, and Stockholm. Meanwhile, SAS passengers will have access to 33 new destinations throughout Europe linked to Air France and KLM's hubs in Paris Charles de Gaulle and Amsterdam Schiphol.
Importantly, these agreements will offer reciprocal loyalty benefits through the Flying Blue and EuroBonus programs, enabling members to earn and redeem miles across the networks of SAS and the Air France-KLM Group.
Integration into the SkyTeam Alliance
September 1, 2024, will also mark SAS’s official inclusion in the SkyTeam alliance, which counts Air France and KLM among its founding members. Eligible EuroBonus members will then be able to take advantage of 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 contact 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 does Air France-KLM's acquisition of SAS AB mean?
This acquisition enhances Air France-KLM's presence in the Scandinavian markets and expands travel options for customers of both airlines.
When will the new codeshare agreements become effective?
The new codeshare and interline agreements will take effect on September 1, 2024.
What was the amount invested by Air France-KLM in SAS AB?
Air France-KLM invested $144.5 million USD in SAS AB as part of the acquisition.
What advantages will SAS customers gain from this acquisition?
SAS customers will have access to numerous destinations across Europe and reciprocal loyalty program benefits starting September 1, 2024.
Is SAS joining any alliances due to this acquisition?
Yes, SAS will join the SkyTeam alliance on September 1, 2024, providing additional benefits to its customers.
