SAS Exits Rehabilitations Proces in good shape in USA – towards a new and fit Scandinavian Airlines System
SAS sought bankruptcy protection in July 2022 after years of struggling with high costs and low demand, leading to a court-approved plan making Air France-KLM (AIRF.PA), opens new tab, hedge fund Castlelake, investment manager Lind Invest and the Danish government its new owners.
SAS had initially forecast the process would take between nine and 12 months. Air France-KLM will initially hold a 19.9% stake in SAS, boosting the French-Dutch group’s footprint in Sweden, Denmark and Norway.
SAS will switch its customer loyalty programme next month to SkyTeam, of which Air France-KLM is a leading member, from Star Alliance, which includes Lufthansa and United Airlines. SAS will exit the court proceedings with a total investment of $1.2 billion, comprising $475 million in new unlisted equity and $725 million in secured convertible debt.
Regional rival Norwegian Air (NAS.OL), opens new tab underwent a similar restructuring from 2020 to 2021, emerging with a slimmed-down fleet and lower debt. SAS earlier reached a wage deal with its cabin crew in Norway, ending a labour strike over pay and working conditions, which it said would aid operations.