This article covers a developing story. Continue to check back with us as we will be adding more information as it becomes available.
Summary
- SAS is officially leaving Star Alliance to join SkyTeam on September 1, 2024.
- SAS was part of Star Alliance since it was established in May 1997.
- The airline’s passengers will benefit from a network of over 1,000 destinations within SkyTeam.
SAS Scandinavian Airlines, trading as SAS, officially announced that it will leave Star Alliance to join SkyTeam on September 1, 2024, as the Scandinavian carrier moves closer to Air France-KLM. The latter airline group purchased an almost 20% stake in SAS in a transaction announced on October 3, 2023.
Alliance adherence agreement
SAS and SkyTeam have signed an Alliance Adherence Agreement (AAA), according to the carrier’s announcement. The agreement marked an important step for the airline to join SkyTeam after having been a member of Star Alliance since it was established in May 1997.
“SAS customers will benefit from easy connectivity across SkyTeam’s network of 1,060+ destinations, which includes their favourites as well as previously unserved cities – particularly across Africa, Latin America and the Caribbean.”
The airline detailed that the moment it joins SkyTeam, the members of its loyalty program EuroBonus will enjoy the typical frequent flier reciprocity across “most” airlines within the alliance. Detailing the status tiers, EuroBonus Silver members will be recognized as SkyTeam Elite, while Gold and Diamond members will become SkyTeam Elite Plus on the alliance’s loyalty program.
Photo: Tom Boon | Simple Flying
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Reciprocal benefits will be available to most SkyTeam carriers starting September 1st.
Sharing a common vision
According to Andrés Conesa, the chairman of SkyTeam, the airline and the alliance share a common vision when it comes to delivering a more integrated and responsible travel experience, adding that SkyTeam continues working hard behind the scenes to ensure a smooth transition for SAS and EuroBonus customers.
Meanwhile, Patrick Roux, the chief executive officer (CEO) of SkyTeam, said that the two sides have begun charting a path for SAS to join the alliance. Roux shared that SAS has a reputation for reliability, quality, and service, making it a great fit for SkyTeam, which will only strengthen the alliance’s customer proposition.
Photo: The Global Guy | Shutterstock
Anko van der Werff, the president and CEO of SAS, detailed that the AAA was a pivotal milestone in SAS’ transition to a new alliance. According to van der Werff, EuroBonus members will be able to enjoy new destinations and benefits when SAS officially joins SkyTeam.
“SAS customers will benefit from SkyTeam’s strong global presence in many of the world’s major aviation hubs and from its focus on strategic partnerships and innovative sustainability initiatives.”
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The airline’s network should look quite different in the future.
Investment by Air France-KLM
In October 2023, Air France-KLM, as well as Castlelake and Lind Invest ApS, collectively named a consortium, were named as the winning bidder in SAS’ exit financing solicitation. In the announcement, Air France-KLM explained that if the transaction is approved, it will acquire a 19.9% non-controlling stake in SAS, providing an investment totaling $144.5 million, split between $109.5 million investment in the airline’s common shares and $35 million in the form of secured convertible bonds.
Photo: Markus Mainka | Shutterstock
In total, the consortium and the Danish state would invest $1.1 billion in the airline, with $475 million being invested in common shares, while the remaining sum would be provided in the form of secured convertible bonds. At the time, Air France-KLM said that the transaction needed to be approved by the European Commission (EC), the US Bankruptcy Court for the Southern District of New York, and in respect of SAS AB, the Swedish Court, as well as other parties.
On March 19, the aforementioned US court approved SAS’ Chapter 11 plan, with the airline saying that it expected to exit Chapter 11 bankruptcy proceedings in H1 2024. Less than ten days later, SAS AB, the parent company of the SAS group based in Sweden, filed for a company reorganization in Stockholm, Sweden as part of the exit plan.
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What SAS’ Star Alliance-SkyTeam Swap Means For Frequent Flyers
Passengers can still redeem miles with Star Alliance carriers for future travel and can book award tickets on SkyTeam carriers from September 1st.
