Scandinavian airline SAS has announced that Air France-KLM, along with investment firms Castlelake and Lind Invest, will become the airline's new majority owners. This significant development comes as part of the airline's restructuring efforts following bankruptcy proceedings.
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The New Ownership Structure
The new ownership structure will see American private equity firm Castlelake holding a 32% stake, Air France-KLM with a 20% stake, and the Danish state retaining a 26% stake. The total investments in the reorganized SAS will amount to 12.9 billion Swedish crowns ($1.16 billion).
A Significant Achievement
SAS Chairman Carsten Dilling described this development as a "significant achievement of our transformation plan". He further added, "We have carried out a broad, competitive, and thoroughly evaluated equity solicitation process, and we are confident that the selected bid is the most favorable for SAS, its creditors, and other stakeholders".
The Backdrop
SAS filed for bankruptcy protection in the United States in mid-2022 after years of struggling with high costs coupled with low customer demand brought on by the pandemic. This new investment is seen as a crucial step towards the airline's recovery and future growth.
Looking Ahead
With this new investment and ownership structure, SAS is poised for a fresh start. The involvement of Air France-KLM and the investment firms not only provides financial stability but also brings in strategic expertise that could help SAS navigate the challenging aviation landscape.
This development marks a significant milestone in SAS's transformation journey. It underscores the confidence of major players like Air France-KLM in SAS's potential and paves the way for its future growth.
