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 5, 2023, 9:07 am

#256

BobTL

Join Date: May 2018

Posts: 771

Quote:

Originally Posted by Fredrik74

Lifetime status only means SAS no longer asks a person to requalify. From other member airlines' point of view this is not known.

Sure, FB has Platinum For Life

Oct 5, 2023, 9:27 am

#257

another_shot

Join Date: Nov 2004

Programs: EB*G, BT VIP

Posts: 770

This is quite disappointing. I spent a lot of time and money to get my life time gold with SK, although most of that travel was naturally aligned to SK flights anyway.
I have mentioned it here on FT sometime ago that I never seen the terms of contract for life time gold, only qualification criteria is published and all you can see is your status on their web. But nothing is detailed like what exactly SK commitment is. As there is no contractual terms as such, they can terminate it any day even without going to another alliance.
Currently Baltics (TLL/RIX/VNO) is not served by AF nor KL nor by any other ST carrier - SU was the only one until the war. Actually I do not recall AF ever served it, and KL has quit long ago. Now it is just a codeshare on BT operated flights which are running once daily at the best - can you actually earn ST status miles on ST codeshared flights?.
Both CDG and AMS are too far away from the Baltics for a logical and environmentally sound routings when you need to go anywhere Central or East Europe.
At the present time *A is presented in Baltics by SK/LH/LO/TK/SN/A3. If SK will move to ST and the rest will remain, they will be the only ST carrier around here and that is not making me happy. Since SK has cut the Baltics schedule so heavily, I am no longer flying with them unless going to Scandinavia. I mostly do LH, sometimes LO and TK. Transiting FRA without *G status is a nightmare as there are no other lounges in T1. My only hope some *A carriers will offer the lifetime status match but that sounds like a wet dream.... I am getting older and trying to avoid travel whenever I can, so maintaining gold every year could become a struggle.

jamesbrownontheroad likes this.

Oct 5, 2023, 9:40 am

#258

nacho

FlyerTalk Evangelist

Join Date: Aug 2010

Location: CPH

Programs: UAMP S, TK M&S E (*G), Marriott LTP, IHG P, SK EBG

Posts: 11,140

I don't believe in Lifetime status. I define lifetime status as the status is there as long as that company is up and running - if there is a takeover or merger I don't expect whatever lifetime status I have is still going to be there.

Oct 5, 2023, 9:49 am

#259

irishguy28

FlyerTalk Evangelist

Join Date: Mar 2008

Location: Netherlands

Programs: KL Platinum; A3 Gold

Posts: 28,810

Quote:

Originally Posted by another_shot

Currently Baltics (TLL/RIX/VNO) is not served by AF nor KL nor by any other ST carrier - SU was the only one until the war. Actually I do not recall AF ever served it, and KL has quit long ago. Now it is just a codeshare on BT operated flights which are running once daily at the best - can you actually earn ST status miles on ST codeshared flights?

In Flying Blue, all flights marketed as either AF or KL will earn (both miles and XPs - the latter being the equivalent of "status miles"), regardless of who actually operates the flight. So, AF-coded flights on BT, and KL-coded flights on BT, will earn as normal in Flying Blue.

These same flights (AF-coded BT-operated flights, or KL-coded BT-operated flights) would, however, NOT earn anything in any other Skyteam member programme, because there is no alliance-wide requirement for all members to give (award/status) miles on flights operated by non-Skyteam members but sold as codeshares by any other Skyteam member.

That said, there is also nothing to stop any particular Skyteam member programme to go beyond the alliance-wide minimum; any programme could decide to give (award/status) miles on such flights on an ad-hoc basis. I could image, for example, that with AFKL "steering" SK, and possibly with a view to deepening the relationship between SK and AFKL and possibly one day merging the two FFPs, that they could, for example, dictate that Eurobonus members would similarly earn points/status miles on any AF/KL flight, even codeshares on (certain) non-Skyteam partners.

Fredrik74 likes this.

Oct 5, 2023, 10:07 am

#260

FlyingMoose

Join Date: Oct 2011

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

Posts: 2,858

Quote:

Originally Posted by nacho

You can pick your lifetime ambitions better relative to the long term outlook of an airline. SK was just a poor choice but most people who have LTG today with SK just got it from their usual flying business and face it, obtaining SK Gold tier is a joke.

I have LTG with SK, BA and DL but obviously SK wasn't the one to last. I won't be in a rush to replace the *A LTG with something else as LH group doesn't do much for me and the only *A airline I genuinely enjoy flying is SQ but their redemption doesn't make much sense for my preferences.

GUWonder and nacho like this.

Oct 5, 2023, 10:15 am

#261

FlyingMoose

Join Date: Oct 2011

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

Posts: 2,858

AFKL doesn't currently do that with Delta though, the earning mechanics are different (and as such the Delta program is better). The one good thing potentially is that SK would need to up their game on their Diamond tier (or more likely future Platinum tier) if they want to keep it consistent among ST or at the risk of every FB member switching to EB.

Oct 5, 2023, 10:15 am

#262

nacho

FlyerTalk Evangelist

Join Date: Aug 2010

Location: CPH

Programs: UAMP S, TK M&S E (*G), Marriott LTP, IHG P, SK EBG

Posts: 11,140

Quote:

Originally Posted by FlyingMoose

That was also the reason why we didn't buy SK shares and going for their lifetime status. I got LTP with Marriott but I don't count on the benefits will still be there 5/10 years from now. When we were talking about SK shares give SK G (when the share prices were really low), and some people were happily buying the shares. Mr said, "yeah it's low now and all it takes is to drop to 0 and you lose everything".

KF is really not an attractive programme, redemption is horrible and it's not easy to maintain it either unless you have their credit card or something.

Oct 5, 2023, 11:37 am

#263

another_shot

Join Date: Nov 2004

Programs: EB*G, BT VIP

Posts: 770

Quote:

Originally Posted by irishguy28

Thanks, that's sound a bit of relief. Not solving well Central/East Europe but better than nothing. I hope ST will make an online presence to Baltics after the change with SK situation.

irishguy28 and lsquare like this.

Oct 5, 2023, 11:43 am

#264

another_shot

Join Date: Nov 2004

Programs: EB*G, BT VIP

Posts: 770

Quote:

Originally Posted by nacho

So true. Especially when coupled with no T&C attached. But still what a disappointment for people who literally spent hundreds of thousands to make it.

Oct 5, 2023, 11:47 am

#265

copperred

Join Date: Nov 2010

Posts: 440

Quote:

Originally Posted by GUWonder

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.

Canads's population is minuscule compared to the US. AC's market power as such is also because Canada's air travel market remains far more regulated than next door. It's often far cheaper to drive across the border and fly transcon within the US. YUL and YYC are political choices as much as they are market related, everyone knows what that's about. YVR is a relatively new hub, but Canada, like the US is a vast country where forcing everyone to travel to YYZ is nonsense. YOW gets the subsidiary connection to DC, yet gets TATLs seasonally. YUL has lots of leisure travel, especially to the DOM-TOM. AC still has lots of leisure traffic with Rouge, which is just the flying bus charter model that package holidays or their follow on providers use in Europe.

WestJet is leaning back into more premium services, and has built a hub at YYC for their TATLs.

Oct 5, 2023, 12:01 pm

#266

copperred

Join Date: Nov 2010

Posts: 440

Quote:

Originally Posted by irishguy28

Check out these photos from a particularly infamous AF union meeting that happened exactly 8 years ago today....

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....

Yeah attempted murder is a normal part of French strike culture.

the810 and SK2751 like this.

Oct 5, 2023, 3:32 pm

#267

CPH-Flyer

FlyerTalk Evangelist

Join Date: Jul 2011

Location: Tokyo

Programs: JAL Metal Card (OWE), SAS Eurobonus Gold (*G), Marriott Titanium (LTP), Tokyu Hotels Platinum

Posts: 21,427

Quote:

Originally Posted by copperred

Yeah attempted murder is a normal part of French strike culture.

Or just hostage taking....

https://www.theguardian.com/world/20...e-boss-hostage

the810 likes this.

Oct 5, 2023, 3:57 pm

#268

Nick Art

Moderator: SAS

Original Poster

Join Date: Feb 2018

Location: BLL & CPH & ZRH

Programs: LX, SK EBD (*G)

Posts: 3,190

This is a little reminder to everyone to please remain within the spheres of the topic of this thread.
I understand that there are various different aspects to consider and discuss, but an analysis of the Canadian aviation market and French strike horror stories, among others, are perhaps straying a little too far from the core topic.

- SAS | EuroBonus Mod

ty97, SK2751, Maestro Ramen and 2 others like this.

Last edited by Nick Art; Oct 5, 2023 at 4:04 pm

Oct 5, 2023, 8:56 pm

#269

HadesNL

Join Date: Jan 2011

Location: AMS+IAH

Programs: Lufthansa: Senator || IHG: Diamond Royal Ambassador Inner Circle || Plutonium Status

Posts: 3,608

Hmm:
Oslo, Stockholm, Copenhagen
only thing left, is to start betting which ones get the chop and become demoted to lower cost service models .......
SAS transformed into entities similair
aka KL Cityhopper or even Transavia with KL codeshare (cheaper operating cost than KL itself)

Oct 5, 2023, 9:00 pm

#270

CPH-Flyer

FlyerTalk Evangelist

Join Date: Jul 2011

Location: Tokyo

Programs: JAL Metal Card (OWE), SAS Eurobonus Gold (*G), Marriott Titanium (LTP), Tokyu Hotels Platinum

Posts: 21,427

Quote:

Originally Posted by HadesNL

The KL Cityhopper equivalent exists already in SAS Link. Regional jet operations in the name of SK. And some props as well.

lsquare and HadesNL like this.