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Air France-KLM Joins Investment Consortium to Rescue SAS

Air France-KLM announced its participation in a group that will acquire roughly 20% of Scandinavian Airlines (SAS).

Air France-KLM announced its participation in an investment consortium to acquire nearly 20 percent of Scandinavian Airlines (SAS), struggling to emerge from bankruptcy protection.

The Investment Consortium:

  • Air France-KLM’s Role: The airline giant, Air France-KLM, will invest $144.5 million to purchase a 19.9 percent stake in SAS.
  • Danish State’s Participation: Alongside Air France-KLM, the Danish state will also contribute to the consortium with a total investment of $1.175 billion.

SAS’ Bankruptcy and Recovery Efforts:

  • Filing for Chapter 11: SAS filed for Chapter 11 bankruptcy safeguard in the United States in July 2022 due to the severe impact of COVID-19 travel bans and a costly pilot strike.
  • Cost-Cutting Measures: In response to its financial woes, SAS initiated a rigorous cost-cutting plan.
  • Hunt for Investors: The airline actively sought new investors, noting “substantial” interest from potential partners in September.

Air France-KLM’s Perspective:

  • Enhancing Market Position: Air France-KLM sees this collaboration as an opportunity to strengthen its presence in the Nordics and improve connectivity for Scandinavian and European travelers.
  • CEO’s Statement: Air France-KLM Chief Ben Smith expressed optimism about the cooperation’s potential benefits for both parties.

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