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]
#301
Join Date: Mar 2023
Location: Under the Big Oak Tree
Programs: Air Bukovina Elite, Circassian Air Gold, Carthaginian Airlines Platinum
Posts: 563
So they clearly want fully integrate SAS into the gsoup including the JV on TATL. Only a matter of time before its full on Flying Blue then. On a different note youd assume Korean Air would open a regular route to CPH or SAS to Seoul. Otherwise were pretty screwed when travelling east. Id absolutely hate having to fly to AMS or CDG first for a 2 stopper to a lot of the APAC destinations. That would be an absolute showstopper.
SAS' network to Asia is only a shadow of what it once was, and this deal isn't going to help in that respect.
The other issue is that both LOT and Finnair have built up their East Asian business. Even if the goal was to build up CPH's connectivity to Asia following the AF/KL deal, SAS would have a hard time trying to compete with two nearby major hubs within its own group (CDG and AMS), as well as Finnair at HEL and LOT at WAW.
Of course with the Russian airspace situation many East Asian routes aren't very viable for European carriers anyway and the longer travel times aren't appealing for passengers.
#302
Join Date: Jan 2011
Location: Beijing
Programs: SK EBG, BAEC Gold
Posts: 936
I assume that what the poster means is that the information is not available to LH *without* a confirmed booking (possible of course that they could offer a status match only after booking a LH group flight - but that is certainly not the way these things usually work).
#303
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,410
For a status match the matching airline would have to do a query completely unrelated to any travel activity. That is not allowed.
#304
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 is part of the *A CITP, the operating carriers DCS queries the system for status info automatically. When you buy a ticket you give the airline the right to query your personal data from your loyalty program.
For a status match the matching airline would have to do a query completely unrelated to any travel activity. That is not allowed.
For a status match the matching airline would have to do a query completely unrelated to any travel activity. That is not allowed.
They could put it in to the conditions of the status match that they will query the system. In order to get the status match you give the airline the right to get personal data from the Star Alliance system.
#305
Join Date: Mar 2021
Posts: 767
AC made a status match campaign towards US competition in the wake of the pandemic and it was probably one of the biggest disasters execution vice in AC history. I basically think that AC managed to piss everybody off, both existing and new customers. And I'll put my head on the block and say it did cost AC a substantial amount of money.
So when the status match mayhem starts Airlines really have to be prepared for fraudsters and make sure that they have thought it through. In AC's case and if my memory doesn't fail me, it ended up with legal battles and threatening of such, involving top tier US FF and fraudsters alike.
Last edited by Stil; Oct 7, 2023 at 1:18 am
#306
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 would SK be OK with that, I'm doubtful?
AC made a status match campaign towards US competition in the wake of the pandemic and it was probably one of the biggest disasters execution vice in AC history. I basically think that AC managed to piss everybody off, both existing and new customers. And I'll put my head on the block and say it did cost AC a substantial amount of money.
So when the status match mayhem starts Airlines really have to be prepared for fraudsters and make sure that they have thought it through. In AC's case and if my memory doesn't fail me, it ended up with legal battles and threatening of such, involving top tier US FF and fraudsters alike.
AC made a status match campaign towards US competition in the wake of the pandemic and it was probably one of the biggest disasters execution vice in AC history. I basically think that AC managed to piss everybody off, both existing and new customers. And I'll put my head on the block and say it did cost AC a substantial amount of money.
So when the status match mayhem starts Airlines really have to be prepared for fraudsters and make sure that they have thought it through. In AC's case and if my memory doesn't fail me, it ended up with legal battles and threatening of such, involving top tier US FF and fraudsters alike.
#307
Join Date: Mar 2021
Posts: 767
SK might not be OK with it, but unless they want to pull the Eurobonus member data from the Star Alliance system, and upset their members by getting them denied *G benefits in the last weeks/months of Star Alliance participation, there is not much SK can do about it.....
#308
Join Date: Feb 2009
Posts: 570
Hi All,
At Gdańsk GDN airport now, flying SAS as a *G member. Been denied access to the lounge here and told by both check-in staff and lounge staff that as of two days ago, *G members flying SAS no longer have lounge access due to this. Thought it beneficial to write here for others to know.
At Gdańsk GDN airport now, flying SAS as a *G member. Been denied access to the lounge here and told by both check-in staff and lounge staff that as of two days ago, *G members flying SAS no longer have lounge access due to this. Thought it beneficial to write here for others to know.
#309
Join Date: Jul 2023
Posts: 3
Hi All,
At Gdańsk GDN airport now, flying SAS as a *G member. Been denied access to the lounge here and told by both check-in staff and lounge staff that as of two days ago, *G members flying SAS no longer have lounge access due to this. Thought it beneficial to write here for others to know.
At Gdańsk GDN airport now, flying SAS as a *G member. Been denied access to the lounge here and told by both check-in staff and lounge staff that as of two days ago, *G members flying SAS no longer have lounge access due to this. Thought it beneficial to write here for others to know.
However if you fly e.g. LH as SK *G you do have access to contract lounges.
#310
Join Date: Jun 2015
Programs: AY+, SK EB
Posts: 2,988
At Gdańsk GDN airport now, flying SAS as a *G member. Been denied access to the lounge here and told by both check-in staff and lounge staff that as of two days ago, *G members flying SAS no longer have lounge access due to this. Thought it beneficial to write here for others to know.
#311
Join Date: Mar 2016
Posts: 25
Nick Art - Thanks for the information. This is very useful.
I am one of those rare folks who is happy with the switch, as I have high status in the SkyTeam. In May I bought first class tickets on SAS and joined EuroBonus as it was the best flight. Does anyone know how these Eurobonus miles will transfer to my SkyMiles account?
Personally, if Lufthansa were to switch to SkyTeam my world would then be perfect. But, everyone has a different situation.
Happy flying!
PS - I will confess my favorite lounges are not SkyTeam
1- Turkish Airlines Istanbul - Star
2- United Chicago - Star
3 - Lufthansa Frankfurt - Star
4 - Delta Atlanta - Sky Team
I am one of those rare folks who is happy with the switch, as I have high status in the SkyTeam. In May I bought first class tickets on SAS and joined EuroBonus as it was the best flight. Does anyone know how these Eurobonus miles will transfer to my SkyMiles account?
Personally, if Lufthansa were to switch to SkyTeam my world would then be perfect. But, everyone has a different situation.
Happy flying!
PS - I will confess my favorite lounges are not SkyTeam
1- Turkish Airlines Istanbul - Star
2- United Chicago - Star
3 - Lufthansa Frankfurt - Star
4 - Delta Atlanta - Sky Team
Last edited by profguy; Oct 7, 2023 at 7:20 am
#313
Join Date: Sep 2003
Location: OSL
Posts: 2,671
Unfortunately I think that's what you're going to see...a lot of long-haul traffic routed through AMS or CDG at the expense of CPH and ARN.
SAS' network to Asia is only a shadow of what it once was, and this deal isn't going to help in that respect.
The other issue is that both LOT and Finnair have built up their East Asian business. Even if the goal was to build up CPH's connectivity to Asia following the AF/KL deal, SAS would have a hard time trying to compete with two nearby major hubs within its own group (CDG and AMS), as well as Finnair at HEL and LOT at WAW.
Of course with the Russian airspace situation many East Asian routes aren't very viable for European carriers anyway and the longer travel times aren't appealing for passengers.
SAS' network to Asia is only a shadow of what it once was, and this deal isn't going to help in that respect.
The other issue is that both LOT and Finnair have built up their East Asian business. Even if the goal was to build up CPH's connectivity to Asia following the AF/KL deal, SAS would have a hard time trying to compete with two nearby major hubs within its own group (CDG and AMS), as well as Finnair at HEL and LOT at WAW.
Of course with the Russian airspace situation many East Asian routes aren't very viable for European carriers anyway and the longer travel times aren't appealing for passengers.
AFKLM owns 19.9% of the airline. The fund and Danish state jointly control the equity, in addition, the fund controls most of the debt.
If the business plan is to route traffic through AMSCDG; the JV agreements which I dont fully understand, would need to be significantly in the feeder airlines favour. I understand that it only applies on l/h metal, and I assume it is pro rata to seats supplied transatlantic. Feeding through AMSCDG in other words would mean more profit to AFKLM. Why would the majority owners allow this?
I think the rationale for AFKLM is as follows
- theyre a major airline in the nordics but most likely losing significant customer volumes given the EB captive base. They will now either be able to control said customer base through a switch to FB (which may be implemented as a cost cutting exercise) or by virtue of ST, significantly improving passenger flow.
- if SAS is successful as a stand alone entity, they will have value loss through its acquisition at a later stage) but given the history, clear theyre not willing to outright acquire the business today
- if it isnt successful, then a) they can still acquire down the line at similar or lower valuation, and regardless they would have been given to the customer base
The majority owners would not want redirect massively traffic flow to AFKLM; thatll represent negligible value to them.
I think this will mean significant investment in the l/h network for SAS; the ones paying the worst price will be the swedes. No real staff presence, no desire to put new routes in ARN. I still believe OSL will do OK but thats also based on the old adage it is the only profitable entity which can easily no longer be true.
I think it is a real shame that SAS as three-party cooperation is effectively over, but if being real, it was that when deregulation happened. They just eked it out for very long
#314
Join Date: Sep 2003
Location: OSL
Posts: 2,671
I think the last real precedent of a program merger (ie not converting to a common currency like OW and Avios airlines are doing) was when BD was acquired by BA. however the comparison here of course would be that your SAS miles may be converted into FB, and of course not SM.
#315
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
So they clearly want fully integrate SAS into the gsoup including the JV on TATL. Only a matter of time before its full on Flying Blue then. On a different note youd assume Korean Air would open a regular route to CPH or SAS to Seoul. Otherwise were pretty screwed when travelling east. Id absolutely hate having to fly to AMS or CDG first for a 2 stopper to a lot of the APAC destinations. That would be an absolute showstopper.
Nick Art - Thanks for the information. This is very useful.
I am one of those rare folks who is happy with the switch, as I have high status in the SkyTeam. In May I bought first class tickets on SAS and joined EuroBonus as it was the best flight. Does anyone know how these Eurobonus miles will transfer to my SkyMiles account?
Personally, if Lufthansa were to switch to SkyTeam my world would then be perfect. But, everyone has a different situation.
Happy flying!
PS - I will confess my favorite lounges are not SkyTeam
1- Turkish Airlines Istanbul - Star
2- United Chicago - Star
3 - Lufthansa Frankfurt - Star
4 - Delta Atlanta - Sky Team
I am one of those rare folks who is happy with the switch, as I have high status in the SkyTeam. In May I bought first class tickets on SAS and joined EuroBonus as it was the best flight. Does anyone know how these Eurobonus miles will transfer to my SkyMiles account?
Personally, if Lufthansa were to switch to SkyTeam my world would then be perfect. But, everyone has a different situation.
Happy flying!
PS - I will confess my favorite lounges are not SkyTeam
1- Turkish Airlines Istanbul - Star
2- United Chicago - Star
3 - Lufthansa Frankfurt - Star
4 - Delta Atlanta - Sky Team
CX lounges in HKG, LHR
QF lounge LHR
AA flagship lounge at LAX
BR lounge at TPE
NH lounge at NRT (I like the curry and ramen)
SQ KF lounges at SIN, HKG, BKK