The Franco-Dutch airline group Air France-KLM said on Friday that it plans to take a controlling stake in the Scandinavian carrier SAS, turning it into a fully fledged subsidiary.
Air France-KLM currently holds a 19.9% stake in SAS, which it acquired in 2024, as part of a deal to help the beleagued carrier exit a Chapter 11 bankruptcy protection process in the United States.
The initial stake was acquired when Air France-KLM joined a consortium of companies that agreed to make a major investment in SAS in order to shore up its finances.
Air France-KLM now proposes to acquire the stakes of two of its consortium partners in order to raise its stake in SAS to 60.5%.
The current plan is to close the deal by the second half of 2026 with Air France-KLM fully acquiring the entire 32% stake currently held by London-based investment firm Castlelake and an 8.6% stake held by Danish investor Lind Invest.
The Danish government will continue to hold its 26.4% stake in SAS, while the remaining 13.1% of shares will be held by various creditors and smaller investors.
“We are excited by the prospect of fully welcoming SAS into the Air France-KLM family”, commented Benjamin Smith, Chief Executive of the Air France-KLM. Group.
Smith added: “Following their successful restructuring, SAS has delivered impressive performance, and we are confident that the airline’s potential will continue to grow through deeper integration within the Air France-KLM Group.”
If the deal can clear regulators and competition watchdogs, Air France-KLM would control the majority of the seats on the SAS board of directors. A price of the major investment has not currently been set and will be determine at closing, based the airline’s financial performance at that time.
In response to Friday’s news, SAS Chief Executive Anko van der Werff commented:
“Air France–KLM becoming the majority owner would mark a defining moment for SAS and a strong signal of confidence in the direction we’re heading.”
“It brings not just stability but will also allow for deeper industrial integration and the full backing of one of the world’s leading airline groups.”
Earlier this week, SAS placed its biggest aircraft order for decades after it finalized a deal to acquire 45 Embraer E195-E2 regional aircraft to fuel its expansion plans.
The first aircraft deliveries are expected in 2027 and will allow SAS to add more routes across its pan-Scandinavian network. The deal is estimated to be worth around $4 billion and includes purchase options for an additional ten aircraft.
