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 30, 2023, 4:15 am
#436
Join Date: May 2012
Location: Paris
Programs: Flying Blue (Platinum), Eurobonus (Diamond), Marriott (Titatinum), British Airways Exec Club (Gold)
Posts: 70
Indeed,the Air Canada Lounge my personal fav of the bunch.
LHR is too big a market for SAS not to offer lounge access but another devaluation is imminent.I thought rock bottom was reached by now but every time it gets even worse with SK.
Any news on status matches by the Lufthansa Group?
LHR is too big a market for SAS not to offer lounge access but another devaluation is imminent.I thought rock bottom was reached by now but every time it gets even worse with SK.
Any news on status matches by the Lufthansa Group?
https://simpleflying.com/air-france-...throw-airport/
Oct 30, 2023, 1:16 pm
#437
Join Date: Oct 2011
Programs: EuroBonus Diamond, Delta Skymiles 360, BAEC LTG, Hilton Diamond, Marriott Ambassador
Posts: 2,881
I could see SK sustain an IAD route without a domestic feeder just based off Nordics-IAD demand. Their flight to BOS will just be easier to fill, could see it move to A333 and replace connecting passengers away from NYC. Agreed that even DTW could work but SK needs to work on their East Coast density problem and look for an ORD alternative more West, especially if they are looking to sustain MIA.
Oct 30, 2023, 2:53 pm
#438
FlyerTalk Evangelist
Join Date: Aug 2017
Programs: AS 75K, DL Silver, UA Platinum, Hilton Gold, Hyatt Discoverist, Marriott Platinum + LT Gold
Posts: 10,697
I'm sure there is a way, they already have one for the CPH route? Useless airlines like Norse had no problem picking up a bunch? Other airlines continue to come and go at JFK?
I would much prefer SK to fly to anywhere else in the US but NYC and leave it to DL but I'm sure SK will feel differently about that. Perhaps just get a 2nd slot for ARN-JFK and drop the OSL rotation and use the plane for something more useful. My point continues to be that without a domestic alliance partner, SK has no business at EWR.
I would much prefer SK to fly to anywhere else in the US but NYC and leave it to DL but I'm sure SK will feel differently about that. Perhaps just get a 2nd slot for ARN-JFK and drop the OSL rotation and use the plane for something more useful. My point continues to be that without a domestic alliance partner, SK has no business at EWR.
Anyway, do you know how Norse got all of its JFK slots? You keep assuming anyone can just get JFK slots. You know why SAS is leaving close to midnight on its JFK to CPH flight? SAS would much prefer an earlier time for more robust connections.Regarding EWR, hate to break it to you, the O/D traffic is about 80%. Other than United to United, there just aren't a lot of connecting traffic. Are there United to SAS connecting pax? Of course, but hardly meaningful.
Last edited by Nick Art; Nov 1, 2023 at 8:37 am
Oct 31, 2023, 12:49 am
#440
Join Date: May 2012
Location: Paris
Programs: Flying Blue (Platinum), Eurobonus (Diamond), Marriott (Titatinum), British Airways Exec Club (Gold)
Posts: 70
No idea but that's not the only point. EU approbation may take months if not year, all the more since they just said they're be very strict on future acquisitions (AZ, SK...). LH is still waiting for AZ, the Korean/Asiana merger has been under scrutiny for 3 years now....
I would not be surprised is the deal isn't validated in the next 12 months.
I would not be surprised is the deal isn't validated in the next 12 months.
Oct 31, 2023, 4:49 am
#441
Join Date: Oct 2011
Programs: EuroBonus Diamond, Delta Skymiles 360, BAEC LTG, Hilton Diamond, Marriott Ambassador
Posts: 2,881
Really? No business class, no alliance affiliation and no FFP so what does it do for FTers? Its Norwegian 2.0 waiting to fail again.
I'm not assuming anyone can get JFK slots at all, the point I keep making is that SAS has no business at EWR going forward as they join ST, that's it. The only plausible option is to find a way to move to JFK.
I think the timing of the CPH-JFK route is great, perhaps not for connections but I'm a big fan of late EU>US arrivals and late/midnight US>EU departures to accommodate jetlag. The ARN-EWR timing is terrible. Especially if SK joins the JV with AF/KL/DL on TA, it gives passengers options. There is an early CPH-JFK DL flight if someone needs to connect early.
Meaningful to EWR, perhaps not but SK now only has 1 long haul route out of ARN and OSL to the US and that's to EWR so a lot of people have little choice now and connect in EWR if they don't take a connection in Europe to their final destination (provided there is a direct from somewhere else in Europe). But you just confirmed the point I keep making, without United connections SK has nothing to do there. I doubt even 50% of the passengers on SK planes coming from Scandinavia has NYC as its final destination.
Anyway, do you know how Norse got all of its JFK slots? You keep assuming anyone can just get JFK slots. You know why SAS is leaving close to midnight on its JFK to CPH flight? SAS would much prefer an earlier time for more robust connections.
I think the timing of the CPH-JFK route is great, perhaps not for connections but I'm a big fan of late EU>US arrivals and late/midnight US>EU departures to accommodate jetlag. The ARN-EWR timing is terrible. Especially if SK joins the JV with AF/KL/DL on TA, it gives passengers options. There is an early CPH-JFK DL flight if someone needs to connect early.
Regarding EWR, hate to break it to you, the O/D traffic is about 80%. Other than United to United, there just aren't a lot of connecting traffic. Are there United to SAS connecting pax? Of course, but hardly meaningful.
Oct 31, 2023, 8:07 am
#442
FlyerTalk Evangelist
Join Date: Aug 2017
Programs: AS 75K, DL Silver, UA Platinum, Hilton Gold, Hyatt Discoverist, Marriott Platinum + LT Gold
Posts: 10,697
Really? No business class, no alliance affiliation and no FFP so what does it do for FTers? Its Norwegian 2.0 waiting to fail again.
I'm not assuming anyone can get JFK slots at all, the point I keep making is that SAS has no business at EWR going forward as they join ST, that's it. The only plausible option is to find a way to move to JFK.
I think the timing of the CPH-JFK route is great, perhaps not for connections but I'm a big fan of late EU>US arrivals and late/midnight US>EU departures to accommodate jetlag. The ARN-EWR timing is terrible. Especially if SK joins the JV with AF/KL/DL on TA, it gives passengers options. There is an early CPH-JFK DL flight if someone needs to connect early.
Meaningful to EWR, perhaps not but SK now only has 1 long haul route out of ARN and OSL to the US and that's to EWR so a lot of people have little choice now and connect in EWR if they don't take a connection in Europe to their final destination (provided there is a direct from somewhere else in Europe). But you just confirmed the point I keep making, without United connections SK has nothing to do there. I doubt even 50% of the passengers on SK planes coming from Scandinavia has NYC as its final destination.
I'm not assuming anyone can get JFK slots at all, the point I keep making is that SAS has no business at EWR going forward as they join ST, that's it. The only plausible option is to find a way to move to JFK.
I think the timing of the CPH-JFK route is great, perhaps not for connections but I'm a big fan of late EU>US arrivals and late/midnight US>EU departures to accommodate jetlag. The ARN-EWR timing is terrible. Especially if SK joins the JV with AF/KL/DL on TA, it gives passengers options. There is an early CPH-JFK DL flight if someone needs to connect early.
Meaningful to EWR, perhaps not but SK now only has 1 long haul route out of ARN and OSL to the US and that's to EWR so a lot of people have little choice now and connect in EWR if they don't take a connection in Europe to their final destination (provided there is a direct from somewhere else in Europe). But you just confirmed the point I keep making, without United connections SK has nothing to do there. I doubt even 50% of the passengers on SK planes coming from Scandinavia has NYC as its final destination.
JFK/CPH timing is horrible, but SAS really didn't have a lot of options.
Regarding connecting traffic, there is only 20% of pax connecting at EWR. Your claim of more than 50% connecting traffic cannot be backed up. In the real world outside of FT, few people would fly to Nordics before going the US, as there are so many other better options. It took me almost 24 hours to go from London to NY on SAS, including double connect in OSL and CPH; no one would do that outside of FT. Much of the connecting traffic on SAS happen within the Nordics, as you would expect. You say ARN and OSL only has EWR now, but even during summer season, there isn't a huge number of incremental flights beyond EWR out of ARN and OSL in the first place, just ARN seasonal routes to/from ORD/MIA . CPH is where almost all of the traffic to/from US takes place for SAS.
Nov 1, 2023, 10:25 am
#443
Join Date: Dec 2019
Location: IAH
Programs: MileagePlus-Premier Silver, Marriott Bonvoy-Silver Elite
Posts: 720
Norwegian isn't dead yet. They still fly within Europe and compete with SK, within the Nordics at least.
Like to see Norwegian replacing SK in *A actually. wea need a *A member that connects to the Nordics.
Like to see Norwegian replacing SK in *A actually. wea need a *A member that connects to the Nordics.
Nov 1, 2023, 11:08 am
#444
FlyerTalk Evangelist
Join Date: Aug 2010
Location: CPH
Programs: UAMP S, TK M&S E (*G), Marriott LTP, IHG P, SK EBG
Posts: 11,170
Nov 2, 2023, 12:50 am
#445
Join Date: Mar 2006
Location: UME 🇸🇪 / NWI🇬🇧
Programs: SJ, SAS, DL
Posts: 1,739
On the subject of Norse, they just reported their Q3 numbers, and their first profitable quarter, posting a pre-tax profit of USD1.6 million on revenues of USD205 million. A search for additional financing is ongoing. (If that's all they can manage for the summer season, then the winters will be bleak.)
Norse half-yearly report: https://newsweb.oslobors.no/message/602665
Flight Global article: https://www.flightglobal.com/airline...155631.article
Norse half-yearly report: https://newsweb.oslobors.no/message/602665
Flight Global article: https://www.flightglobal.com/airline...155631.article
Nov 2, 2023, 6:19 am
#446
FlyerTalk Evangelist
Join Date: Aug 2010
Location: CPH
Programs: UAMP S, TK M&S E (*G), Marriott LTP, IHG P, SK EBG
Posts: 11,170
On the subject of Norse, they just reported their Q3 numbers, and their first profitable quarter, posting a pre-tax profit of USD1.6 million on revenues of USD205 million. A search for additional financing is ongoing. (If that's all they can manage for the summer season, then the winters will be bleak.)
Norse half-yearly report: https://newsweb.oslobors.no/message/602665
Flight Global article: https://www.flightglobal.com/airline...155631.article
Norse half-yearly report: https://newsweb.oslobors.no/message/602665
Flight Global article: https://www.flightglobal.com/airline...155631.article
Nov 2, 2023, 12:28 pm
#447
Join Date: Oct 2011
Programs: EuroBonus Diamond, Delta Skymiles 360, BAEC LTG, Hilton Diamond, Marriott Ambassador
Posts: 2,881
In the real world outside of FT, few people would fly to Nordics before going the US, as there are so many other better options.
It took me almost 24 hours to go from London to NY on SAS, including double connect in OSL and CPH; no one would do that outside of FT.
Much of the connecting traffic on SAS happen within the Nordics, as you would expect. You say ARN and OSL only has EWR now, but even during summer season, there isn't a huge number of incremental flights beyond EWR out of ARN and OSL in the first place, just ARN seasonal routes to/from ORD/MIA . CPH is where almost all of the traffic to/from US takes place for SAS.
Nov 2, 2023, 2:22 pm
#448
FlyerTalk Evangelist
Join Date: Aug 2017
Programs: AS 75K, DL Silver, UA Platinum, Hilton Gold, Hyatt Discoverist, Marriott Platinum + LT Gold
Posts: 10,697
Total vs airline specific can absolutely be different metrics. Passengers in ARN have 1 direct flight to the US today and NYC isn't as hot a destination as you might think it is. Most people need to be elsewhere, a really good portion actually needs to get to the West Coast.
Well no there aren't, you can either fly ARN-EWR or layover somewhere else in Europe. The latter only makes sense if your domestic flight exceeds the flight of your intra-EU connection unless you're looking for a better product.
Yea that's just a silly route that only makes sense to an FTer and even then its questionable unless you need segments.
Since I have no data, I can't speak for this. The people in my circles either fly to EWR or AMS/FRA/LHR. Post *A exit for SK that will be more AMS/CDG or where ever DL will fly. There is a growing amount of ARN based passengers that avoid SK like the plague because even their CPH network isn't particularly impressive. There are other much better connected hubs in Europe not much further away with better food/service/ife/everything. ORD isn't seasonal, it was permanently cancelled. Those full planes must have really been hurting SK's bottomline.
Well no there aren't, you can either fly ARN-EWR or layover somewhere else in Europe. The latter only makes sense if your domestic flight exceeds the flight of your intra-EU connection unless you're looking for a better product.
Yea that's just a silly route that only makes sense to an FTer and even then its questionable unless you need segments.
Since I have no data, I can't speak for this. The people in my circles either fly to EWR or AMS/FRA/LHR. Post *A exit for SK that will be more AMS/CDG or where ever DL will fly. There is a growing amount of ARN based passengers that avoid SK like the plague because even their CPH network isn't particularly impressive. There are other much better connected hubs in Europe not much further away with better food/service/ife/everything. ORD isn't seasonal, it was permanently cancelled. Those full planes must have really been hurting SK's bottomline.
Not only is slot essential at JFK, but slot timing is also important as well. The current JFK arrival timing has NO connections, period. Good luck finding afternoon landing/departure slots.
Last edited by Repooc17; Nov 2, 2023 at 2:29 pm
Nov 2, 2023, 3:54 pm
#449
Join Date: May 2006
Programs: SAS Eurobonus Gold, Hilton Diamond
Posts: 44
There is a growing amount of ARN based passengers that avoid SK like the plague because even their CPH network isn't particularly impressive. There are other much better connected hubs in Europe not much further away with better food/service/ife/everything. ORD isn't seasonal, it was permanently cancelled. Those full planes must have really been hurting SK's bottomline.
But when that is said, "those full planes" unfortunately arent as filled as you are dreaming of, and even worse the revenue is not very good. BUT, most importantly, the route is still ongoing as a seasonal.
Nov 3, 2023, 1:52 am
#450
Join Date: May 2012
Location: Paris
Programs: Flying Blue (Platinum), Eurobonus (Diamond), Marriott (Titatinum), British Airways Exec Club (Gold)
Posts: 70
No idea but that's not the only point. EU approbation may take months if not year, all the more since they just said they're be very strict on future acquisitions (AZ, SK...). LH is still waiting for AZ, the Korean/Asiana merger has been under scrutiny for 3 years now....
I would not be surprised is the deal isn't validated in the next 12 months.
I would not be surprised is the deal isn't validated in the next 12 months.
https://simpleflying.com/lufthansa-i...eu-talks-2024/