Air France-KLM is set to take a near 20% stake in SAS Scandinavian Airlines in return for a $144.5m investment.
The investment will help SAS exit from Chapter 11 bankruptcy proceedings.
The move – which will see the Paris-headquartered group take a 19.9% stake in SAS – will also see Air France-KLM enter certain commercial synergies with SAS – including brand and loyalty programmes – and extend its presence in Scandinavia, through improved connectivity.
Benjamin Smith, CEO of Air France-KLM stated: “This is an important day for SAS and for Air France-KLM. We are pleased to be part of the winning bidding consortium selected by the board of SAS. Air France-KLM looks forward to establishing strong commercial ties with SAS. With its well-established position in Scandinavia and strong brand, SAS offers tremendous potential to Air France-KLM. This co-operation will allow Air France-KLM to enhance its position in the Nordics and improve connectivity for Scandinavian and European travelers. We look forward to being a part of this new chapter in SAS’ history and thank the board of SAS for their trust.”
