SAS – Scandinavian Airlines System has confirmed the successful completion of its restructuring process, marking its exit from Chapter 11 bankruptcy proceedings in the United States.
This milestone was achieved thanks to a substantial $1.2 billion investment, which played a crucial role in the airline’s reorganization efforts. One of the key strategic shifts accompanying this transformation is SAS’s decision to leave the Star Alliance and join the SkyTeam alliance, a move driven in part by Air France’s entry into the Scandinavian carrier’s ownership structure.
The New Ownership and Strategic Vision
The restructuring has ushered in a new era for SAS, with a revamped ownership structure. The airline is now under the ownership of Castlelake, Air France-KLM, Lind Invest, and the Danish government. The newly appointed board of directors, led by Chairman Kåre Schultz, is poised to steer the airline into a new phase of growth and innovation. The goal is to strengthen SAS’s position not only in Scandinavia but also on the global stage.
Central to this transformation is the “SAS Forward” plan, a comprehensive commercial and financial overhaul. The airline has successfully restructured over $2 billion in debt, optimized its fleet, and renegotiated agreements with creditors and suppliers. These efforts have laid a solid foundation for the airline’s future operations and strategic ambitions.
Air France-KLM’s Strategic Acquisition
Concurrently, Air France-KLM has announced the completion of its acquisition of a 19.9% stake in SAS. This move is seen as a strategic enhancement of Air France-KLM’s presence in the Scandinavian market. According to Air France-KLM CEO Benjamin Smith,
“We are pleased to have completed this strategic transaction. SAS will enhance our group’s footprint in the Scandinavian markets. SAS, Air France, and KLM customers will now have access to a greater number of destinations through CodeShares. SkyTeam gains an immediate strategic member.”
Despite the challenges of recent years, SAS has continued to demonstrate resilience in its operations. In the fiscal year 2024, spanning from November 2023 to July 2024, the airline transported 18 million passengers, reflecting a 6.5% increase compared to the previous fiscal year. The SAS EuroBonus program, which will now be integrated into SkyTeam, has nearly 8 million members and remains the leading loyalty program in Scandinavia.
Founded in 1946, SAS operates primarily from its main hub at Copenhagen Airport (CPH), with additional hubs in Oslo (OSL) and Stockholm (ARN). The airline annually transports approximately 25 million passengers and 55,000 tons of cargo across 135 destinations in Europe, the United States, and Asia.
A New Chapter in Scandinavian Aviation
With its successful restructuring, new ownership, and strategic alliance shift, SAS is entering a new chapter in its long history. The airline is poised to leverage its strengthened financial position and new partnerships to expand its reach and enhance its service offerings. This marks a significant turning point not only for SAS but also for the broader landscape of Scandinavian aviation.
