SAS Considers IPO as Alternative to Air France-KLM Stake Increase
SAS Scandinavian Airlines is contemplating an initial public offering (IPO) as a strategy to fund its growth should Air France-KLM decide against increasing its current 19.9% stake, according to SAS CEO Anko van der Werff in an interview with Bloomberg News. The potential move comes as the airline seeks to strengthen its position in the competitive European aviation market.
Air France-KLM acquired the nearly 20% stake in SAS during its restructuring process at the end of August, with an option to become a majority shareholder by late 2026. This decision hinges on whether the expansion aligns with Air France-KLM’s profitability targets, including achieving an 8% margin, as noted by an Air France-KLM spokesperson to ch-aviation.
Van der Werff emphasized the importance of optimizing resources among European airlines over maintaining national carriers, suggesting a shift in SAS’s strategic priorities to ensure it remains competitive. He remarked on the consolidation in the U.S. aviation industry, noting that Europe lags behind in terms of having a few dominant players.
The CEO also highlighted the challenges SAS faced as a smaller independent carrier, particularly its exclusion from large joint ventures, which influenced its decision to leave Star Alliance. Such partnerships were restricted under Star Alliance’s rules, which did not align with SAS’s strategic goals.
If Air France-KLM opts to acquire a majority stake in SAS, the transaction would trigger a detailed review by the European Union due to competition policy, especially given the combined size of the carriers involved. However, the future of such joint ventures may become irrelevant if Air France-KLM decides to take full control of SAS.
SAS recently emerged from Chapter 11 and Swedish restructuring at the end of August, during which it also delisted from the market. This restructuring has set the stage for SAS’s next strategic moves, whether it involves an IPO or further integration within the Air France-KLM group.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com