Air France-KLM has announced plans to acquire a majority stake in SAS Scandinavian Airlines, increasing its holding from 19.9% to 60.5%. The transaction, expected to be finalized in the second half of 2026 pending regulatory approval, will see the Franco-Dutch airline group purchase shares from Castlelake and Lind Invest—both of which acquired stakes during SAS’s Chapter 11 restructuring in 2023. The value of the deal will be determined at the time of closing.
European Aviation Faces Major Shift
This strategic shift not only signifies a vote of confidence in SAS’s turnaround but also marks a significant consolidation move within Europe’s airline sector. It comes after SAS’s successful emergence from bankruptcy protection, a realignment of its alliance strategy, and a renewed focus on sustainable growth.
Chief Executive Officer of Air France-KLM Ben Smith says:
“We are excited by the prospect of fully welcoming SAS into the Air France-KLM family. 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. This operation would benefit our customers and all Scandinavians who would enjoy enhanced connectivity, as well as the SAS teams whose dedication has been key to restore their airline to its rightful place,” Air France-KLM chief executive officer Ben Smith said.
The deal also represents a moment of transformation for SAS, which departed the Star Alliance in 2024 to join SkyTeam, aligning itself more closely with Air France-KLM’s network. Although the group’s current minority stake limits the extent of cooperation, the transition to majority ownership will pave the way for full-scale commercial and operational integration.
CEO of SAS Anko van der Werff added:
“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, once regulatory approval has been obtained.”
What’s Next? Regulatory Approvals and Market Reactions
The acquisition remains subject to European Commission approval, particularly given the potential impact on competition across Northern and Central Europe. Shareholdings below 20% typically avoid intense scrutiny, but a controlling interest triggers deeper regulatory evaluation.
If approved, the transaction could set a precedent for further consolidation in the European airline market—especially as Air France-KLM also eyes strategic stakes in TAP Air Portugal and Air Europa.
What impact will Air France-KLM’s takeover of SAS have on competition, connectivity, and alliance dynamics in European aviation? Let us know below!
