Oct 3, 2023, 2:27 pm
Last edit by: Nick Art
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?
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?
2. What will happen to my EuroBonus points?
3. What will happen to my EuroBonus tier status?
4. What will happen to my EuroBonus Lifetime Gold status?
5. Do I keep my status benefits when I travel on another Star Alliance partner airline?
6. Can I still earn points when I fly on another Star Alliance carrier?
7. What will happen to my existing Star Alliance award bookings?
8. Can I still use my points to redeem on other Star Alliance carriers?
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?
Will there be opportunities to match with other programs to remain in *A?
Will AF - KLM take over control of SAS?
What is the ratio of the new ownership?
What happens to existing SAS shares?
Will SAS change their HUB strategy or move their HQ to Denmark?
Will SAS join the SkyTeam transatlantic Joint Venture?
How was this decided?
What is the process now?
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)
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?
- Yes
10. Can I still use my EuroBonus points on non-airline partners such as rental cars or hotels?
- Yes
- 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]
Oct 4, 2023, 4:34 pm
#226
FlyerTalk Evangelist
Join Date: Mar 2010
Programs: DL, OZ, AC, AS, AA, BA, Hilton, Hyatt, Marriott, IHG
Posts: 19,939
But you are already there, if you want to exclude the low cost carriers. You can pick between LHG/AFKL/IAG. And currently a few niche players, Lot, TAP, Air Europe, and SK.
The Japan market is quite different, passengers pay a hefty premium and are willing to pay a hefty premium to fly with JANA INTERNATIONALLY. Domestic there is a host of other airlines but the market is regulated and most of the independent airlines are no more independent than being effectively either part of team red or team blue.
Almost all major airlibes fly to Japan, the only ones with a worse schedule from Europe than SK is KL. And a lot of Asian LCC flies to Japan. Apart from Tokyo, JANA has very limited long haul flights, that's all left to partners or competitors. So you actually have a wide choice, and all the foreign carriers are actually cheaper than JANA.
From an alliance perspective, Skyteam is just awful in Japan. Without a local airline, there are so many destinations that you can't make it to without connecting. Even Hong Kong would suddenly require a stop Seoul or Taipei, where JAL and Cathay would offer 8 flights a day from Tokyo.
The Japan market is quite different, passengers pay a hefty premium and are willing to pay a hefty premium to fly with JANA INTERNATIONALLY. Domestic there is a host of other airlines but the market is regulated and most of the independent airlines are no more independent than being effectively either part of team red or team blue.
Almost all major airlibes fly to Japan, the only ones with a worse schedule from Europe than SK is KL. And a lot of Asian LCC flies to Japan. Apart from Tokyo, JANA has very limited long haul flights, that's all left to partners or competitors. So you actually have a wide choice, and all the foreign carriers are actually cheaper than JANA.
From an alliance perspective, Skyteam is just awful in Japan. Without a local airline, there are so many destinations that you can't make it to without connecting. Even Hong Kong would suddenly require a stop Seoul or Taipei, where JAL and Cathay would offer 8 flights a day from Tokyo.
Oct 4, 2023, 4:45 pm
#227
FlyerTalk Evangelist
Join Date: Jul 2011
Location: Tokyo
Programs: JAL Metal Card (OWE), SAS Eurobonus Gold (*G), Marriott Titanium (LTP), Tokyu Hotels Platinum
Posts: 21,542
Oct 4, 2023, 4:55 pm
#228
FlyerTalk Evangelist
Join Date: Mar 2010
Programs: DL, OZ, AC, AS, AA, BA, Hilton, Hyatt, Marriott, IHG
Posts: 19,939
Oct 4, 2023, 5:09 pm
#229
FlyerTalk Evangelist
Join Date: Jul 2011
Location: Tokyo
Programs: JAL Metal Card (OWE), SAS Eurobonus Gold (*G), Marriott Titanium (LTP), Tokyu Hotels Platinum
Posts: 21,542
That's the whole point, apart from Tokyo, there is virtually no long haul flights from the two Japanese carriers. JAL does do KIX LAX, and the rest of the flights from non Tokyo are Hawaii and intra Asia. And apart from Hawaii they are actually pretty few. KIX LAX is apart of an elaborate W exercise with Honolulu, so the plane is actually based in Tokyo.
Oct 4, 2023, 5:14 pm
#230
Join Date: Apr 2010
Location: VIE
Programs: SAS EBS / *A Silver, Hilton Diamond, Radisson VIP, IHG Platinum Ambassador
Posts: 3,931
In Europe we still have TK (I see TK as European as IST is on the European side) and A3. LOT is kind of part of LH (at least the M&M part) but they seem to have more autonomy than LX SN and OS. TK and LO are the only 2 airlines that I prefer flying because they don't have the crappy HBO/Y- fare for long haul flights.
Oct 4, 2023, 10:12 pm
#231
Join Date: Nov 2014
Location: SIN and Medway, UK (so... LCY/LGW/BRU)
Programs: A3 *G, BA OWS, VS Gold, IHG Diamond Amb, Bonvoy Plat
Posts: 751
That's the whole point, apart from Tokyo, there is virtually no long haul flights from the two Japanese carriers. JAL does do KIX LAX, and the rest of the flights from non Tokyo are Hawaii and intra Asia. And apart from Hawaii they are actually pretty few. KIX LAX is apart of an elaborate W exercise with Honolulu, so the plane is actually based in Tokyo.
If anything Qantas, the American carriers, Lufthansa and to some extent SAS are the only carriers really with multiple longhaul bases and are more the anomaly than the norm. And unlike the rest, only SAS has a pretty small longhaul fleet and attempts to do longhaul flying out of ARN/OSL (and even BGO) other than EWR from time to time.
Oct 4, 2023, 10:18 pm
#232
FlyerTalk Evangelist
Join Date: Mar 2010
Programs: DL, OZ, AC, AS, AA, BA, Hilton, Hyatt, Marriott, IHG
Posts: 19,939
But that seems quite standard for most carriers, no? Air France is useless if not out of Paris, BA has had a reputation of being "London Air" for ages, LOT doesn't help if not out of WAW, Swiss only does a single longhaul out of GVA (JFK) and NZ's longhaul network is virtually only out of AKL. Even the three Taiwanese carriers focus all of their efforts in TPE, there's not a single longhaul out of KHH. And usually foreign carriers have the local market captive - like KLM has the non-LON British market captive and LH has the non-WAW Polish one too, if they're on longhauls.
If anything Qantas, the American carriers, Lufthansa and to some extent SAS are the only carriers really with multiple longhaul bases and are more the anomaly than the norm. And unlike the rest, only SAS has a pretty small longhaul fleet and attempts to do longhaul flying out of ARN/OSL (and even BGO) other than EWR from time to time.
If anything Qantas, the American carriers, Lufthansa and to some extent SAS are the only carriers really with multiple longhaul bases and are more the anomaly than the norm. And unlike the rest, only SAS has a pretty small longhaul fleet and attempts to do longhaul flying out of ARN/OSL (and even BGO) other than EWR from time to time.
Oct 4, 2023, 10:42 pm
#234
Join Date: May 2016
Posts: 500
One thing I haven't seen mentioned is how the LH Group outsources their ticketing/ground operations to SK at ARN/CPH/OSL (and probably all Scandinavian airports where the LH Group flies). I really enjoyed dropping off bags the evening before departure at ARN when taking LH or OS flights, and that is probably going away now. So now the burning questions are...
* Will the LH Group outsource ticketing/ground operations to Menzies, or bring in their own employees (doubtful)?
* Will the LH Group eliminate operations to/from BGO, SVG, GOT, AAR, BLL, Kalmar?
* Will UA combine operations with LH at ARN and CPH?
* Will the LH Group outsource ticketing/ground operations to Menzies, or bring in their own employees (doubtful)?
* Will the LH Group eliminate operations to/from BGO, SVG, GOT, AAR, BLL, Kalmar?
* Will UA combine operations with LH at ARN and CPH?
Oct 4, 2023, 10:54 pm
#235
FlyerTalk Evangelist
Join Date: Jul 2011
Location: Tokyo
Programs: JAL Metal Card (OWE), SAS Eurobonus Gold (*G), Marriott Titanium (LTP), Tokyu Hotels Platinum
Posts: 21,542
But that seems quite standard for most carriers, no? Air France is useless if not out of Paris, BA has had a reputation of being "London Air" for ages, LOT doesn't help if not out of WAW, Swiss only does a single longhaul out of GVA (JFK) and NZ's longhaul network is virtually only out of AKL. Even the three Taiwanese carriers focus all of their efforts in TPE, there's not a single longhaul out of KHH. And usually foreign carriers have the local market captive - like KLM has the non-LON British market captive and LH has the non-WAW Polish one too, if they're on longhauls.
If anything Qantas, the American carriers, Lufthansa and to some extent SAS are the only carriers really with multiple longhaul bases and are more the anomaly than the norm. And unlike the rest, only SAS has a pretty small longhaul fleet and attempts to do longhaul flying out of ARN/OSL (and even BGO) other than EWR from time to time.
If anything Qantas, the American carriers, Lufthansa and to some extent SAS are the only carriers really with multiple longhaul bases and are more the anomaly than the norm. And unlike the rest, only SAS has a pretty small longhaul fleet and attempts to do longhaul flying out of ARN/OSL (and even BGO) other than EWR from time to time.
Oct 4, 2023, 11:35 pm
#236
FlyerTalk Evangelist
Join Date: Mar 2010
Programs: DL, OZ, AC, AS, AA, BA, Hilton, Hyatt, Marriott, IHG
Posts: 19,939
Yes, but the "secondary" cities in Japan are quite big, the Osaka Hanshin metropolitan area is over 10 million people, and so is the metropolitan area around Nagoya. The population concentration in urban areas in Japan would make it more interesting to have long hauls from there as well.
Oct 5, 2023, 1:41 am
#238
FlyerTalk Evangelist
Join Date: Aug 2010
Location: CPH
Programs: UAMP S, TK M&S E (*G), Marriott LTP, IHG P, SK EBG
Posts: 11,154
TK and A3 are not really useful intra Europe, which you could also argue for TP and Air Europe. And A3 does not fly long haul. While TK and the ME3 offers a lot of long haul options, who would want to use them Scandinavia to the US? So yeah, SK does move from slightly independent player to part of a transatlantic JV. So you increase the blocs a bit, but not significantly so, does SK even have long haul planes enough to operate LH's daily New York schedule?
Oct 5, 2023, 1:43 am
#239
FlyerTalk Evangelist
Join Date: Aug 2010
Location: CPH
Programs: UAMP S, TK M&S E (*G), Marriott LTP, IHG P, SK EBG
Posts: 11,154