Air France-KLM thinks that it can fully unlock the potential of SAS Scandinavian Airlines by acquiring the airline and getting it into its transatlantic alliance. This will be to the benefit of all parties involved. Group CEO Ben Smith shared some further thoughts on the intention of Air France-KLM to acquire 19.9 percent of SAS in Friday’s Q3 earnings call.
The acquisition proposal was announced by SAS on October 3, when the airline said that Air France-KLM, Castlelake, Lind Invest, and the Danish State would be buying a combined 60.5 percent of the Scandinavian airline for $1.175 billion. Air France-KLM will invest $144.5 million, of which $109.5 million in common shares and $35 million in secured convertible bonds. The acquisition is conditional on regulatory approval from the European Commission and the US Department of Transportation and other conditions.
“SAS enjoys both a well-established position in the Nordics and is a strong brand and is therefore a source of strong potential for Air France-KLM. It will allow us to enhance our footprint in the region and offer Scandinavian and European travelers better connections,” Smith said. Scandinavia has been Air France-KLM’s fifth point of sales in the past eleven months.
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