Oct 3, 2023, 2:27 pm

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SAS plans to leave Star Alliance and join SkyTeam

On the 3rd of October SAS announced further steps as part of their SAS FORWARD plan. SAS has raised nearly 12.9 billion SEK as part of their Chapter 11 restructuring process. This will mean current shareholders are wiped out and the company will be delisted.

The new owners include Air France-KLM, Castlelake, Lind Invest and the Danish state.

As such, SAS plans to leave Star Alliance and join Air France-KLM's Sky Team alliance by summer 2024.

FAQ:

What does this mean for EuroBonus?

Eurobonus members can still book travel on Star Alliance carriers until the end of the transition period.
~~Future affiliation with Air France-KLM's Flying Blue frequent flyer programme has not yet been decided.~~
In the meantime the agreement between SAS and the investing consortium includes a provision for preparations of merging EuroBonus into FlyingBlue once AF-KLM owns more than 50% of the outstanding shares. It thus seems very likely that EuroBonus will ultimately be merged into FlyingBlue, the timeline and details of this are, however, still unclear.

SAS EuroBonus FAQ:
On October 3rd 2023, SAS announced the intention to eventually join SkyTeam and leave Star Alliance. For now the EuroBonus program remains unchanged. SAS will keep you informed about what to expect over the coming months and will provide updates continuously on the EuroBonus website.

1. What will happen to EuroBonus?

No changes are being made to the program and EuroBonus will remain SAS's loyalty program. As a member, you will continue to earn and use points on SAS as today. Your status and benefits as a EuroBonus member when you fly with SAS will not be impacted. • Delivering an attractive loyalty program to SAS's loyal customers will remain the top priority for us and our new owners, even after SAS changes ownership and alliance. SAS intends to eventually leave Star Alliance and join SkyTeam, and adjustments to the program will be made accordingly. As long as SAS is a member of Star Alliance, EuroBonus members can continue to enjoy the same benefits as they do today when flying on a Star Alliance partner airline.

2. What will happen to my EuroBonus points?

No changes are made to your EuroBonus points. You will keep all points earned until now and will continue to earn and use points just like today.

3. What will happen to my EuroBonus tier status?

No changes are made to your EuroBonus tier status. You will retain your status and your progress made during your qualification period. Requirements to reach each tier level and benefits included in each tier remain the same.

4. What will happen to my EuroBonus Lifetime Gold status?

No changes are made to the EuroBonus Lifetime Gold program. EuroBonus Lifetime Gold memberships will be honored even after SAS joins SkyTeam, and all progress made towards Lifetime Gold will be kept.

5. Do I keep my status benefits when I travel on another Star Alliance partner airline?

While SAS remains part of Star Alliance, you will enjoy the same status benefits as you do today when you fly with a Star Alliance partner • When SAS eventually joins SkyTeam, you will also be able to enjoy similar status benefits across the extensive SkyTeam network.

6. Can I still earn points when I fly on another Star Alliance carrier?

While SAS remains part of Star Alliance, you will be able to earn EuroBonus Basic points when flying on a Star Alliance airline partner flights

7. What will happen to my existing Star Alliance award bookings?

Existing bookings remain unchanged and will be honored even if you fly after SAS eventually leaves Star Alliance

8. Can I still use my points to redeem on other Star Alliance carriers?

While SAS remains part of Star Alliance, we will allow you to use EuroBonus points to book Star Alliance award trips

9. Can I still earn points on credits cards and other non-airline partners?

10. Can I still use my EuroBonus points on non-airline partners such as rental cars or hotels?

11. What about other Star Alliance partner members flying on SAS?

While SAS remains part of Star Alliance, members of other Star Alliance member programs will keep their status benefits while flying on SAS, and will be able to spend their miles/points on SAS flights

Will there be opportunities to match with other programs to remain in *A?

Most likely yes, but it will have yet to be seen what opportunities will present itself.

Will AF - KLM take over control of SAS?

After a minimum of two years and pending regulatory permission, AF - KLM may increase its stake to grant it controlling power over SAS. However, the current situation indicates that there are agreements within the consortium, which would de facto give AF - KLM control with regards to certain aspects of SAS operations (as seen by the announcement to leave *A and join ST).

What is the ratio of the new ownership?

Castlelake: 32%
AF - KLM: 19.9%
Danish State: 25.8%
Lind Invest: 8.6%
Remaining equity to be distributed to existing creditors.

What happens to existing SAS shares?

This process makes current SAS shares lose their value. Some existing shareholders expressed displeasure about the decision and are questioning wether an American court can rule on making existing shares of SAS lose their value. It remains to be seen if legal action is taken.

Will SAS change their HUB strategy or move their HQ to Denmark?

This is as of yet unconfirmed but it seems likely that SAS might focus on CPH and move its HQ.

Will SAS join the SkyTeam transatlantic Joint Venture?

This is the stated goal of AF-KLM CEO, but will require regulatory approval.

How was this decided?

There was a bidding process and two bids were received. Private Equity company Apollo Global Invest had expressed interest in taking control of the airline.
The decision on the bids was taken roughly 30 minutes before the press conference on October 3rd as stated by Dilling.

What is the process now?

Nothing changes immediately. As of now SAS is still a member of Star Alliance and will continue to operate normally for the foreseeable future.
The announcements made today reflect the future plans, which are subject to approval by many different entities and regulatory bodies. These include the courts in the US to approve the Chapter 11 process, courts in Sweden which will have to approve the restructuring (and invalidation of shares), as well as the following, as taken out of the SAS press release: "(...) antitrust authorities, civil aviation authorities, the European Commission, and EFTA Surveillance Authority (as applicable), SAS leaving Star Alliance, the implementation of a Swedish Reorganization at the SAS AB level, and other customary conditions. There currently remains uncertainty in respect of satisfying such conditions and obtaining required approvals (...)".
We should hear more about if this is going through in the next couple of weeks.
SAS plans to exit Chapter 11 in Q2 2024 and leave Star Alliance and join SkyTeam before summer 2024.

Sources and links:

- SAS Press Release
- Communication E-Mail sent to EB members can be found in Post 114
- E24 (Information with regards to EuroBonus. Thanks to matin for the find in Post 64)
- Reuters
- AF-KLM Press Release
- SAS EuroBonus FAQ (Thanks again to matin for the find in Post 237)
- DInside on Merger of EuroBonus into FlyingBlue (Thanks to Frederik74 for the find in Post 473)

SAS to leave Star Alliance and join SkyTeam [eff. 01 Sep 2024]

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Oct 3, 2023, 12:44 pm

#61

FlyingMoose

Join Date: Oct 2011

Programs: EuroBonus Diamond, Delta Skymiles 360, BAEC LTG, Hilton Diamond, Marriott Ambassador

Posts: 2,827

The only problem I have with AMS is that the terminals lack air conditioning in the summer and it just gets to warm. The labor issues seem to be in the past now their government let the unions extort KL and the airport.

The AMS-LPI route is fine, its been around for years and I've used it a good amount in the past when I was closer to LPI than ARN. Runs reliably multiple times a day with the only downside it being a bus gate in AMS.

copperred likes this.

Oct 3, 2023, 12:46 pm

#62

etiene

Join Date: Mar 2017

Location: AMS

Programs: BAEC Silver, Flying Blue Gold, TK M&S Nobody

Posts: 2,481

Guess that answers where I’ll put the miles from the BLL fare - maybe they’ll turn into Flying Blue miles down the way. Another double XP bounce to WAW might be useful, but I doubt it’ll materialise in time to be of use to us.

Oct 3, 2023, 12:47 pm

#63

jerjeffr

Join Date: Jul 2015

Location: CPH or DC

Programs: EBD, Avis Presidents Club, HH Gold

Posts: 82

I came to FlyerTalk to wondering about this.
FlyingMoose never lets me down.
Hope they honor it!

Oct 3, 2023, 12:51 pm

#64

Matin

Join Date: Oct 2019

Posts: 70

What happens to Eurobonus?

SAS' customers can today, through the bonus program Eurobonus, book flights with SAS and partners in the Star Alliance, such as Lufthansa, United, Turkish and Thai.

SAS aims to leave the Star Alliance before the summer of 2024 and will join Air France-KLM's alliance Skyteam. SAS promises to honor all agreements until the switch has been completed and until then it will still be possible to book travel with Star Alliance companies for Eurobonus points.

- Anyone who uses EuroBonus in the future to book travel in the future with Lufthansa or other Star Alliance partners will be able to use their points for that, van der Werff told E24 in Stockholm after the press conference.

When asked whether the members of SAS' bonus program Eurobonus will in the future join Air France-KLM's bonus program Flying Blue, the SAS boss replies:

- Absolutely no medium to long-term prospects now. When we leave Star Alliance and join Sky Team, we will make sure to take good care of our Eurobonus members.

Source

Nick Art likes this.

Oct 3, 2023, 12:52 pm

#65

venomtrilogy

Join Date: Jun 2015

Posts: 343

I am *A Gold and have an SK trip already booked for May. Could the switch happen before then? I usually take 2-3 SK TATLs and a few intra-Europe flights every year, so I suppose that will end and those trips will be with UA/LH and making a connection.

Oct 3, 2023, 12:55 pm

#66

AlicorporateUK

Join Date: Oct 2009

Location: SJJ/AMS

Posts: 4,647

I can only agree with FlyingMoose and his remarks in relation to the current state-of-play at AMS. The shambles from last year are distant past or so to speak, I travel from AMS on a regular basis and I often don’t even make use of the fast-track arrangements prior to accessing security (everywhere being so quiet), also staff seems to have acquired a way more civilised attitude and I genuinely can’t remember a time in the last 12 months or so when it took me more than 10 minutes between arriving from Centraal by train (or on the 397 bus service from elsewhere) and being on my way to one of the lounges.

G

etiene and Netherlines like this.

Oct 3, 2023, 12:59 pm

#67

downinit

Join Date: Jan 2010

Posts: 1,333

ST & *A already dominate the TATL market (aside from UK/BA), so I doubt this will have any significant effect on fares. I just hope TP does not defect to AF/KLM as well. As it is, the LH/KLM duopoly over Europe is already pretty absurd. Too bad the EU has zero desire in breaking it up. My experience with the atrocious security at CPH makes it a little easier to hej hej to SK.

the810, nacho, copperred and 3 others like this.

Oct 3, 2023, 1:02 pm

#68

jerjeffr

Join Date: Jul 2015

Location: CPH or DC

Programs: EBD, Avis Presidents Club, HH Gold

Posts: 82

Really hope lifetime *A transfers to Lifetime SkyTeam. Big worry is it's platinum not gold so doubt they honor it.

Oct 3, 2023, 1:03 pm

#69

the810

Join Date: Apr 2010

Location: VIE

Programs: SAS EBS / *A Silver, Hilton Diamond, Radisson VIP, IHG Platinum Ambassador

Posts: 3,779

Quote:

Originally Posted by jerjeffr

Really hope lifetime *A transfers to Lifetime SkyTeam. Big worry is it's platinum not gold so doubt they honor it.

There's no talk of SK moving to Flying Blue so far, so your lifetime Eurobonus status shouldn't be affected, it will just come with another alliance's benefits.

ilikemiles likes this.

Oct 3, 2023, 1:14 pm

#70

criced

Join Date: May 2016

Posts: 500

Quote:

Originally Posted by the810

There's no talk of SK moving to Flying Blue so far, so your lifetime Eurobonus status shouldn't be affected, it will just come with another alliance's benefits.

Wrong, there were. Anko answered a question about Flying Blue at the press conference and his answer were something that its good that SAS colors are blue, not red 🙄

Oct 3, 2023, 1:16 pm

#71

irishguy28

FlyerTalk Evangelist

Join Date: Mar 2008

Location: Netherlands

Programs: KL Platinum; A3 Gold

Posts: 28,742

Quote:

Originally Posted by FlyingMoose

The press release states "As part of the transaction, SAS is intended to eventually join the SkyTeam Alliance (“SkyTeam”), of which Air France-KLM is a founding member, and exit the Star Alliance, subject to any relevant approvals and emergence from the chapter 11 process." - This would eventually imply a transition to FlyingBlue.

It doesn't, actually.

AFKL will only hold 20% of the shares so they cannot make any unilateral decision of that nature. And I'm not sure I see the logic of ditching Eurobonus for Flying Blue - albeit that Eurobonus is going to have to go through some major changes!

And the traffic has all been in the opposite direction of late....Air Europa left Flying Blue a few years back to set up their own programme, SUMA, and Kenya Airways left Flying Blue this year.

Other than AFKL's vanity, I can see no reason to shut EuroBonus and transition everyone across to Flying Blue.

GUWonder, AlicorporateUK, the810 and 4 others like this.

Oct 3, 2023, 1:18 pm

#72

copperred

Join Date: Nov 2010

Posts: 439

Quote:

Originally Posted by downinit

The complete abandonment of any regulation of the JVs has really been a disaster for anything resembling competition on TATL routes. It's either one of the few JVs or a Nordic (usually Icelandic) Peoples Express/Ryanair clone. I guess SK/TP have been trying to thread the needle between the two.

I found security at CPH to be far better than ARN several years in a row, but Fast Track is a scam. They're so proud of themselves getting a scanner that isn't a metal detector and now I have to say nice things about TSA.

GUWonder, downinit and the810 like this.

Last edited by copperred; Oct 3, 2023 at 1:46 pm

Oct 3, 2023, 1:20 pm

#73

BobTL

Join Date: May 2018

Posts: 760

This is probably done to get a third home base apart from AMS and CDG for AF/KL. At AMS growth is impossible for any airline so probably CPH will be there new home base. This is positive for CPH who will get a hub function for Scandinavian pax traveling long haul. In this way, KLM can cancel some Scandinavian routes at AMS, comply with idiotic Dutch law and move these slots to CPH who probably will receive these flights with open arms so AF/KL keeps their business. CPH will probably get direct connections with the DL hubs and expand their network in SE Asia and India. I don’t expect Africa and South America.

The negative effect will be that prices will go up for Scandinavian pax as a competitor is eleminated. LH doesn’t have much function anymore.

GUWonder, AlicorporateUK, copperred and 5 others like this.

Last edited by BobTL; Oct 3, 2023 at 1:22 pm Reason: Typo

Oct 3, 2023, 1:23 pm

#74

irishguy28

FlyerTalk Evangelist

Join Date: Mar 2008

Location: Netherlands

Programs: KL Platinum; A3 Gold

Posts: 28,742

Quote:

Originally Posted by Amexpat

Wow, this is a shocker. I don't know much about Sky Team so not sure how it will effect me. One negative would be transfering through CDF and AMS for flying to southern European cities. As bad as FRA and MUC may be those are worse.

Why would you need to connect in CDG or AMS? At least for cities already served by SAS!!!

it would make no sense for AFKL to buy a share of SAS, and then shut down that airline's routes, leaving competitors to move in and recreate their Scandinavian hubs.

And I don't see that AFKL would be able to do that anyway (not that it makes sense for them to want to do so), given that they only have 20% of the shares, and their partners are unlikely to see their new acquisition mutilated in such a way!!!

livious, AlicorporateUK, etiene and 1 others like this.

Oct 3, 2023, 1:24 pm

#75

PerStockholm

Join Date: Aug 2014

Location: Stockholm, Sweden

Posts: 115

My wife and I live in Stockholm and we’re both SK Diamond members with roughly 3,5 million EB points combined (and 8x 2-4-1 checks). I’m two years away from Lifetime Gold. Currently, we have a quite complex award trip in business class booked for xmas (TK, BR), then again around easter (TK, LH, TG) and then another one in the summer of -24 (TK, LH, BR, UA). Currently in the process of booking another for September 2024.
This news is nothing short of catastrophic for us ”hub captives” in ARN with a lot of long-haul travels.

jerrychuang likes this.