Air France-KLM has announced plans to acquire a majority stake in Scandinavian Airlines (SAS) in a move aimed at expanding its presence in the European market. The deal, which will see Air France-KLM increase its stake in SAS from 19.9% to 60.5%, is expected to strengthen the group’s position in the region and enhance its long-haul offerings.
The financial details of the deal have not been disclosed, but it is expected to be valued higher than the $145 million Air France-KLM paid for its initial stake in SAS back in 2023. Ben Smith, the CEO of Air France-KLM, expressed confidence in the management team at SAS and highlighted the potential synergies that the acquisition could bring, including possible job cuts.
The acquisition of SAS by Air France-KLM is seen as a strategic move to counter the increasing competition in the European airline industry. With budget airlines posing a threat to legacy carriers like Air France-KLM, the acquisition of SAS could help the group consolidate its position in the market and tap into new growth opportunities.
The deal is expected to face regulatory scrutiny from the European Commission, which has raised concerns about airline consolidation leading to higher fares for consumers. However, Air France-KLM remains optimistic that the acquisition will not raise antitrust issues, given the competitive landscape in Scandinavia.
In addition to its plans to acquire SAS, Air France-KLM has expressed interest in purchasing Portuguese airline TAP, which is currently up for sale by the Portuguese government. The group faces competition from other airlines, including Lufthansa and IAG, in its bid to acquire TAP.
Overall, the acquisition of SAS by Air France-KLM represents a significant step in the group’s strategy to expand its presence in Europe and strengthen its position in the competitive airline industry. The deal is expected to close in the second half of 2026, pending regulatory approval.
