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]
Jan 17, 2024, 1:01 am
#556
Join Date: Oct 2011
Programs: EuroBonus Diamond, Delta Skymiles 360, BAEC LTG, Hilton Diamond, Marriott Ambassador
Posts: 2,863
The more interesting question imho is what will happen with DTW/MSP/SEA routes from either SK's end or DL's. The hiring activity DL has done in ARN relative to a single seasonal JFK route doesn't really add up so I expect more news soon now the CPH-ATL route is out of the bag.
Jan 17, 2024, 1:22 am
#557
Join Date: Feb 2008
Location: Stockholm
Programs: Various
Posts: 3,376
I don't really know if ARN-ORD made sense other than as a connection flight for people travelling between Stockholm and the US. If the market is there for a similar flight it may well be from MSP/DTW and operated by Delta if SAS can't/won't.
Jan 17, 2024, 8:01 pm
#560
Join Date: Sep 2002
Location: NOVA
Programs: IHG Rewards Platinum, Marriott Gold, Hilton Diamond, UA/DL/AA Back of the plane...
Posts: 4,639
There very well could be a period of time between dropping out of *A and joining Skyteam. I think leaving an alliance is a whole lot easier than joining one.
Jan 18, 2024, 5:59 am
#561
Join Date: Apr 2010
Location: VIE
Programs: SAS EBS / *A Silver, Hilton Diamond, Radisson VIP, IHG Platinum Ambassador
Posts: 3,931
Jan 18, 2024, 7:42 am
#562
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,402
LH increased its frequencies to Bergen, Oslo and started a new Trondheim route in S24 inspite of aircraft shortages. They are getting ready....
Jan 18, 2024, 9:15 am
#563
Join Date: Sep 2003
Location: OSL
Posts: 2,670
I hope for LH they will a) match EBG+ to LH SEN, b) offer some targetted C/F offers to the region (ie address or something similar) so there's an actual chance of requalifying given many fly short-haul a) intra-region and b) non-LH destinations (LON, PAR, etc...) and that westwards, several LH group airlines add to journey time. Now, except maybe LH SEN offered to EBG+ I think rest is unlikely (and the reason why they will offer LH SEN to EBG+ is because requalification requirements are so difficult that after 12 months you will have lost all the low-value clients anyway). I don't think OSL will have enough relevant airlines post SK exit that most will care about *A membership anymore, except when they fly LH (and if LH thought innovatively, they would offer LH FTL lounge access in OSL and perhaps ARN (whilst CPH is where they should be doing it)).
Jan 18, 2024, 9:43 am
#564
Join Date: Oct 2011
Programs: EuroBonus Diamond, Delta Skymiles 360, BAEC LTG, Hilton Diamond, Marriott Ambassador
Posts: 2,863
LH will still need to capture market when all users and creditcards switch to SkyTeam. Flying BGO/OSL/TRD to FRA/MUC or further south makes no sense if you can layover in AMS and shave an hour of your US flight.
Jan 18, 2024, 10:27 am
#565
Join Date: Mar 2021
Posts: 767
From a personal perspective, if LH are going about capturing Scandinavian marked shares claverly, they have to focus on geography and not only capturing EB elite members.
My hunch are that there is quite a number of "non EB elites" like me living in Scandinavia, that mainly flies longhaul but has left EB and joined other airlines programs, but not M&M.
LH should think us in to the status match equation.
Of course M&M has to make their program competitive to succeed in capturing marked shares in the long run 😉
My hunch are that there is quite a number of "non EB elites" like me living in Scandinavia, that mainly flies longhaul but has left EB and joined other airlines programs, but not M&M.
LH should think us in to the status match equation.
Of course M&M has to make their program competitive to succeed in capturing marked shares in the long run 😉
Jan 18, 2024, 11:28 am
#566
Join Date: Sep 2002
Location: NOVA
Programs: IHG Rewards Platinum, Marriott Gold, Hilton Diamond, UA/DL/AA Back of the plane...
Posts: 4,639
Just saying that the value of being in *A is probably already shrinking. Joining an alliance takes lots of steps, leaving is easy by comparison. For example LATAM left oneworld and has yet to join skyteam and EI left oneworld because it was not a good fit for them at the time. There is a cost / value equation being in an alliance. With their plans known the value of being in *A might fall below the value of staying in...
I definitely believe them that they are joining skyteam and think it will very likely be coordinated as many other airline changes have been but I would not be shocked if they left *A while working on integrating into Skyteam. That is not suicide....
I definitely believe them that they are joining skyteam and think it will very likely be coordinated as many other airline changes have been but I would not be shocked if they left *A while working on integrating into Skyteam. That is not suicide....
Jan 18, 2024, 12:09 pm
#567
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,402
I hope for LH they will a) match EBG+ to LH SEN, b) offer some targetted C/F offers to the region (ie address or something similar) so there's an actual chance of requalifying given many fly short-haul a) intra-region and b) non-LH destinations (LON, PAR, etc...) and that westwards, several LH group airlines add to journey time. Now, except maybe LH SEN offered to EBG+ I think rest is unlikely (and the reason why they will offer LH SEN to EBG+ is because requalification requirements are so difficult that after 12 months you will have lost all the low-value clients anyway). I don't think OSL will have enough relevant airlines post SK exit that most will care about *A membership anymore, except when they fly LH (and if LH thought innovatively, they would offer LH FTL lounge access in OSL and perhaps ARN (whilst CPH is where they should be doing it)).
EW has a hub with 5 A320 including local crew in ARN and is already offering point to point flights but they are probably focussing on markets that are not so contested
Jan 18, 2024, 6:12 pm
#568
Join Date: Aug 2012
Location: VPS
Programs: IHG Diamond, Delta PM, Hilton Gold, Accor Gold, Marriott Silver
Posts: 7,331
Just saying that the value of being in *A is probably already shrinking. Joining an alliance takes lots of steps, leaving is easy by comparison. For example LATAM left oneworld and has yet to join skyteam and EI left oneworld because it was not a good fit for them at the time. There is a cost / value equation being in an alliance. With their plans known the value of being in *A might fall below the value of staying in...
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One possible conflict point is how much FB would want to integrate SAS into the Delta/Virgin Atlantic/Flying Blue joint venture and ho much they actually could do with that before running into regulators concerned about lack of price competition on transatlantic routes.
Jan 18, 2024, 6:33 pm
#569
Join Date: Apr 2019
Posts: 980
I think the pandemic rather messed up LATAMs plans in that regard.
One possible conflict point is how much FB would want to integrate SAS into the Delta/Virgin Atlantic/Flying Blue joint venture and ho much they actually could do with that before running into regulators concerned about lack of price competition on transatlantic routes.
One possible conflict point is how much FB would want to integrate SAS into the Delta/Virgin Atlantic/Flying Blue joint venture and ho much they actually could do with that before running into regulators concerned about lack of price competition on transatlantic routes.
Based on the ruling on jet blue and spirit, there's hope the regulators will start cracking down on anti-competitive and anti-consumer collusions known as JVs
Jan 18, 2024, 7:33 pm
#570
Join Date: Nov 2016
Programs: Nectar Card
Posts: 1,102
I'm not sure how long these affairs usually take, but I hope the bureaucracy is extra slow this time 
Whoaaa there really must be a vacuum of short-haul service to DE and sun destinations in STO, for EW to jump in
I was about to question whether any existing alliance had ever been dissolved, but I realize the NEA was.
Poor B6... they publicly stated that they wouldn't fight the NEA-dissolution to put their eggs in the Spirit-basket. And now that's been swatted away too. (They still have cards to play, but their latest hand got beat.)
Anyways, regulatory pressure on the JVs would at the least, be interesting.
Poor B6... they publicly stated that they wouldn't fight the NEA-dissolution to put their eggs in the Spirit-basket. And now that's been swatted away too. (They still have cards to play, but their latest hand got beat.)
Anyways, regulatory pressure on the JVs would at the least, be interesting.