Scandinavian Airlines (SAS) has confirmed it will leave Star Alliance at the end of August ahead of switching to SkyTeam.
The carrier will exit the alliance it co-founded in 1997 on Aug. 31 as part of a restructuring process that involves a $1.2 billion investment from a consortium including SkyTeam member Air France-KLM and the Danish state, acting together with investment firms Castlelake and Lind Invest.
SAS says that it is in “advanced negotiations” with SkyTeam and “many of its member carriers” to develop and grow “extensive commercial relationships.” The airline’s EuroBonus loyalty program will continue, and passengers will be able to obtain benefits with “most” SkyTeam airlines beginning Sep. 1.
“We look forward to giving our customers access to 19 new airlines and more than 1,060 destinations around the globe,” a statement from SAS says. “Customers will enjoy continued access to their favorite cities and regions, while enjoying more travel options to previously unserved destinations.”
As part of its SAS Forward restructuring plan, SAS voluntarily filed for Chapter 11 bankruptcy protection in the U.S. in July 2022. The process has enabled the airline to renegotiate labor agreements, restructure the company’s debt obligations and reconfigure its aircraft fleet.
Following approval by a New York bankruptcy court on March 19, the carrier's holding company initiated reorganization proceedings in Sweden on March 27, a requirement of the U.S. Chapter 11 process. SAS anticipates concluding the restructuring proceedings by the end of the first half of 2024.
The group’s exit from bankruptcy will be financed by $1.2 billion in funding from Air France-KLM, hedge fund Castlelake, investment manager Lind Invest and the Danish state.
Speaking on an investor call in late February, Air France-KLM CEO Benjamin Smith stated he anticipates no major competition policy obstacles before the group acquires an initial 19.9% shareholding. However, remedies may be required at Amsterdam Schiphol Airport.
Smith added that Air France-KLM was in “deep talks” to further increase its ownership of SAS, aiming to secure a majority stake. He said the group has already moved forward on several commercial partnerships, as well as “having them line up with our services wherever we can under the non-immunized rules.”
SAS has already started making changes to its network with the addition of a transatlantic route from Denmark’s capital Copenhagen to Atlanta Hartsfield-Jackson International Airport, the home hub of SkyTeam’s Delta Air Lines. From June 17, flights will operate daily during the summer months using Airbus A330-300 aircraft.
Following confirmation of the departure of SAS on Aug. 31, the Star Alliance said that 17 members would “continue to offer direct flights to and from Scandinavia.” It added: “These Star Alliance member airlines will operate more than 3,700 flights per month to Scandinavia from 23 hubs worldwide, offering customers connections to more than 1,100 international destinations—the most by any airline alliance. In the future, Star Alliance member airlines may bring additional service to Scandinavia.”
Related Content
