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 5, 2023, 1:47 am
#241
Join Date: Mar 2006
Location: UME 🇸🇪 / NWI🇬🇧
Programs: SJ, SAS, DL
Posts: 1,730
I think there is a misunderstanding here. AC is cited as an example of a carrier with three major long-haul hubs (irrespective of whether they fly to CPH).
Oct 5, 2023, 2:40 am
#242
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Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,095
I find all this talk about the Scandinavian ethnic origin population in Minnesota/Upper Midwest being a factor to get SAS and/or Delta to run a route between MSP and CPH/ARN and perhaps even as a replacement for ORD to be funny. The primary reason DL even went to KEF from MSP was to try to hit at Icelandair and its US expansion. And people of Icelandic origin barely register in the area. They didn’t do MSP-ARN/CPH or even OSL for a reason — and note that the Norwegian consulate was basically the last consulate standing around MSP. 
And most of the Scandinavian origin people in the region probably have as much or more Germanic origin heritage and don’t even have any close ties to Scandinavia and have probably never before been. And business ties between Scandinavia and the Upper Midwest are greater around the Chicago area than around the MSP area.
Canada has a significantly larger population than all of the Nordic countries combined, and the demographic and business dynamics of Canada are rather materially different than in the Nordic countries. And the Canadian market has a big assist given Canada borders the US. SAS’s home market area is lacking in those advantages that make it more feasible for AC to have 3 hubs — although I experience it sort of as one big hub and two lesser hubs than as three co-equal hubs — than for SAS to do the same. Also, AC has sort of more market power than SAS does as a result of Canadair being long gone and Westjet being far short of being co-equal to Air Canada. The UK market may be a better comparison to the SAS home market than the Canadian market — and British Airways is basically London Air.
And most of the Scandinavian origin people in the region probably have as much or more Germanic origin heritage and don’t even have any close ties to Scandinavia and have probably never before been. And business ties between Scandinavia and the Upper Midwest are greater around the Chicago area than around the MSP area.Canada has a significantly larger population than all of the Nordic countries combined, and the demographic and business dynamics of Canada are rather materially different than in the Nordic countries. And the Canadian market has a big assist given Canada borders the US. SAS’s home market area is lacking in those advantages that make it more feasible for AC to have 3 hubs — although I experience it sort of as one big hub and two lesser hubs than as three co-equal hubs — than for SAS to do the same. Also, AC has sort of more market power than SAS does as a result of Canadair being long gone and Westjet being far short of being co-equal to Air Canada. The UK market may be a better comparison to the SAS home market than the Canadian market — and British Airways is basically London Air.
Last edited by GUWonder; Oct 5, 2023 at 2:56 am
Oct 5, 2023, 3:00 am
#243
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Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,095
Very Cheap C class ticket to China!!
It would be interesting if AF/KL and SAS tie up with SJ to feed SAS hubs so SJ train rides could earn frequent flyer miles.
Last edited by GUWonder; Oct 5, 2023 at 3:10 am
Oct 5, 2023, 3:29 am
#245
FlyerTalk Evangelist
Join Date: Mar 2010
Programs: DL, OZ, AC, AS, AA, BA, Hilton, Hyatt, Marriott, IHG
Posts: 19,939
I find all this talk about the Scandinavian ethnic origin population in Minnesota/Upper Midwest being a factor to get SAS and/or Delta to run a route between MSP and CPH/ARN and perhaps even as a replacement for ORD to be funny. The primary reason DL even went to KEF from MSP was to try to hit at Icelandair and its US expansion. And people of Icelandic origin barely register in the area. They didnt do MSP-ARN/CPH or even OSL for a reason and note that the Norwegian consulate was basically the last consulate standing around MSP. And most of the Scandinavian origin people in the region probably have as much or more Germanic origin heritage and dont even have any close ties to Scandinavia and have probably never before been. And business ties between Scandinavia and the Upper Midwest are greater around the Chicago area than around the MSP area.
Canada has a significantly larger population than all of the Nordic countries combined, and the demographic and business dynamics of Canada are rather materially different than in the Nordic countries. And the Canadian market has a big assist given Canada borders the US. SASs home market area is lacking in those advantages that make it more feasible for AC to have 3 hubs although I experience it sort of as one big hub and two lesser hubs than as three co-equal hubs than for SAS to do the same. Also, AC has sort of more market power than SAS does as a result of Canadair being long gone and Westjet being far short of being co-equal to Air Canada. The UK market may be a better comparison to the SAS home market than the Canadian market and British Airways is basically London Air.
And most of the Scandinavian origin people in the region probably have as much or more Germanic origin heritage and dont even have any close ties to Scandinavia and have probably never before been. And business ties between Scandinavia and the Upper Midwest are greater around the Chicago area than around the MSP area.Canada has a significantly larger population than all of the Nordic countries combined, and the demographic and business dynamics of Canada are rather materially different than in the Nordic countries. And the Canadian market has a big assist given Canada borders the US. SASs home market area is lacking in those advantages that make it more feasible for AC to have 3 hubs although I experience it sort of as one big hub and two lesser hubs than as three co-equal hubs than for SAS to do the same. Also, AC has sort of more market power than SAS does as a result of Canadair being long gone and Westjet being far short of being co-equal to Air Canada. The UK market may be a better comparison to the SAS home market than the Canadian market and British Airways is basically London Air.
I do find it fascinating that the Japanese carriers don't do much long hauls outside of Tokyo despite having a few densely populated cities. Canada with a population roughly three times smaller than Japan can sustain more long-hauls out of three cities that are much smaller than Osaka, Nagoya, and Tokyo. Even YYC has a few long-hauls. Imagine if Canada did something similar where all long-hauls are out of YYZ.
Oct 5, 2023, 3:38 am
#246
Join Date: Jan 2003
Location: HEL
Programs: *G, used to be with TK but left due to their corruption and political ties
Posts: 4,412
It was sub-$399 for two. It was closer to sub-$200 per single adult going (more or less) round trip:
Very Cheap C class ticket to China!!
It would be interesting if AF/KL and SAS tie up with SJ to feed SAS hubs so SJ train rides could earn frequent flyer miles.
Very Cheap C class ticket to China!!
It would be interesting if AF/KL and SAS tie up with SJ to feed SAS hubs so SJ train rides could earn frequent flyer miles.
Oct 5, 2023, 5:20 am
#248
Join Date: Jul 2015
Location: CPH or DC
Programs: EBD, Avis Presidents Club, HH Gold
Posts: 82
Unsure how the economics of lifetime gold actually works...
(Does/Did SAS pay something to *A, is there payment to each airline to use their lounge, etc.)
Oct 5, 2023, 5:46 am
#249
Join Date: Sep 2005
Posts: 1,784
No, the SAS Lifetime Gold will only gives access to Skyteam lounges when SAS leaves Star alliance. The status should be safe as long as Eurobonus exisits, what happens if they are folded into Flying Blue at some point in the future is anyones guess. I suppose would only happen if AFKL takes more than 50% ownership share of SAS in the future.
Oct 5, 2023, 6:16 am
#251
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,410
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 5, 2023, 6:46 am
#252
Join Date: Mar 2006
Location: UME 🇸🇪 / NWI🇬🇧
Programs: SJ, SAS, DL
Posts: 1,730
Outside the Nordic countries, Germany remains Denmark and Sweden's #1 trading partner.
Almost more than any other country, SK needs a watertight strategy for continuing to serve Germany from day one of life in SkyTeam. Since the majority of SK service to Germany is codeshared with LH, Lufthansa has an immense advantage on these vital city pairs.
Almost more than any other country, SK needs a watertight strategy for continuing to serve Germany from day one of life in SkyTeam. Since the majority of SK service to Germany is codeshared with LH, Lufthansa has an immense advantage on these vital city pairs.
Oct 5, 2023, 7:12 am
#254
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Outside the Nordic countries, Germany remains Denmark and Sweden's #1 trading partner.
Almost more than any other country, SK needs a watertight strategy for continuing to serve Germany from day one of life in SkyTeam. Since the majority of SK service to Germany is codeshared with LH, Lufthansa has an immense advantage on these vital city pairs.
Almost more than any other country, SK needs a watertight strategy for continuing to serve Germany from day one of life in SkyTeam. Since the majority of SK service to Germany is codeshared with LH, Lufthansa has an immense advantage on these vital city pairs.
Neither AF-KL nor Denmark are going to want to rush and kill off SAS routes that work on a point-to-point basis. Maybe they will even try to make Copenhagen Air aka SAS the center of getting people between Scandinavia and Germany. A SkyTeam option to get directly between Scandinavia and Germany will provide LH some competition, and we need more of that as even with Finnair in Oneworld, Oneworld doesnt fly great for the bulk of the Scandinavian travelers who go to Germany.
Oct 5, 2023, 8:05 am
#255
FlyerTalk Evangelist
Join Date: Mar 2008
Location: Netherlands
Programs: KL Platinum; A3 Gold
Posts: 28,838
https://www.theatlantic.com/photo/20...rotest/408991/
Even if you don't want to click on the link, this is the aftermath of 2 AF execs ( Human Resources Director Xavier Broseta (shirtless) and Director of Ops at Orly Pierre Plissonnier) who had to escape the mob and climb a fence to get away from the workers....
