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 18, 2024, 11:02 pm
#571
FlyerTalk Evangelist
Join Date: Aug 2017
Programs: AS 75K, DL Silver, UA Platinum, Hilton Gold, Hyatt Discoverist, Marriott Platinum + LT Gold
Posts: 10,626
There is a huge Nordics population in MN. Maybe, just maybe, most people heading to ORD (MSP in the future?) are NOT heading to west coast.
Jan 19, 2024, 2:11 am
#573
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,403
The ORD lounge is an asset to SAS as it occupies precious space that others would love to have. If they eventually join ST, they could sell the space and send their customers to the newer/nicer DL club in T5. SAS in ORD has a significant freight business. The onward/feeder flights tie in to the UA hub, so moving to MSP or DTW would make more sense as they play the same role in DLs network as ORD does in UA's network.
Jan 19, 2024, 7:47 am
#574
Join Date: Aug 2012
Location: VPS
Programs: IHG Diamond, Delta PM, Hilton Gold, Accor Gold, Marriott Silver
Posts: 7,331
Jan 19, 2024, 11:06 am
#575
Join Date: Jul 2004
Programs: DL; AA; UA; CO; LHLX; NZ; QR; EK; BA
Posts: 7,445
I think that what youre seeing as SKs North America operations for summer 2024 is what they hope to be able to maintain going forward when they are in Skyteam (maybe except for some more potential movements at EWR vs JFK). Star hubs such as ORD and IAD are big markets in their own right and I am pretty sure SK would like to continue serving them even if they have to downsize or cut some flights/frequencies. AF and KL for example continue to have their own metal to ORD and IAD even though those are not Skyteam strongholds; no reason to believe why ORD cant maintain one CPH flight (they already cut ORD-ARN).
EWR may eventually come down to one CPH flight as well once they find additional slots at JFK. And despite the paucity of slots at JFK during the peak hours, SK was somehow able to get two peak evening slots for summer 2024 at much better times than what they have today (510pm and 710pm departure times for CPH compared to the late 1130pm departure today).
EWR may eventually come down to one CPH flight as well once they find additional slots at JFK. And despite the paucity of slots at JFK during the peak hours, SK was somehow able to get two peak evening slots for summer 2024 at much better times than what they have today (510pm and 710pm departure times for CPH compared to the late 1130pm departure today).
Jan 19, 2024, 11:41 am
#576
FlyerTalk Evangelist
Join Date: Aug 2017
Programs: AS 75K, DL Silver, UA Platinum, Hilton Gold, Hyatt Discoverist, Marriott Platinum + LT Gold
Posts: 10,626
SK does not have enough aircraft to enter a new market without the adjustment of existing schedule and/or terminating an existing route/market.
Because of the inflexibility on aircraft utilization, I would expect SK to move slowly on new routes/market, even after its intended move to ST. Also, its financials are still very much vulnerable.
Because of the inflexibility on aircraft utilization, I would expect SK to move slowly on new routes/market, even after its intended move to ST. Also, its financials are still very much vulnerable.
Jan 19, 2024, 4:41 pm
#577
Join Date: Oct 2019
Programs: Flying Blue, Hilton Honors, Amtrak Guest Rewards
Posts: 2,471
Jan 20, 2024, 9:35 pm
#578
Join Date: Oct 2011
Programs: EuroBonus Diamond, Delta Skymiles 360, BAEC LTG, Hilton Diamond, Marriott Ambassador
Posts: 2,863
Uh? Everyone on ORD flights connect further to the west coast? Pray to tell what the point is then for SK operating two convenient nonstop west coast routes?
There is a huge Nordics population in MN. Maybe, just maybe, most people heading to ORD (MSP in the future?) are NOT heading to west coast.
There is a huge Nordics population in MN. Maybe, just maybe, most people heading to ORD (MSP in the future?) are NOT heading to west coast.
MSP would make perfect sense, but we'll see I guess.
I struggle to see the relevance, ARN-ORD was the best alternative to get to the West Coast over a lack of direct West Coast flights from ARN since SK axed ARN-LAX. Population has nothing to do with it.
Jan 21, 2024, 3:02 am
#579
Join Date: Sep 2005
Posts: 1,784
Not sure who in their right mind would prefer to connect in ORD for LAX or SFO, rather than make a quick hop to CPH and get on a longhaul to their destination. If going somewhere else on the west coast with no SK flight that changes the proposition. But a 4 hour domestic hop in the back of the bus is not fun after a transatlantic longhaul, US domestic flying sucks for a majority of SK customers today. Add in no global entry for most and the change of terminals at ORD and re-checking bags, you have quite a bit of uncertainty if you will make your connection.
Jan 21, 2024, 5:08 am
#580
Join Date: Jan 2022
Location: Sweden & UK
Programs: Eurobonus, Iberia Plus
Posts: 160
ORD has been claimed to be important for freight, so it's probably a route that's possible to run profitably with a slightly lower (passenger) load factor. Air freight rates were quite high during covid but have since come down, so I guess freight revenue helps a bit less in keeping a route alive now than 2-3 years ago.
Jan 21, 2024, 5:13 am
#581
Join Date: Aug 2005
Location: BKK
Programs: Mucci Chevalier de la Brosse a Cheveux Dore, SK *GfL, BA Gold, WY G, HH DIA, IC Plat Amb., Hertz PC
Posts: 3,867
Not sure who in their right mind would prefer to connect in ORD for LAX or SFO, rather than make a quick hop to CPH and get on a longhaul to their destination. If going somewhere else on the west coast with no SK flight that changes the proposition. But a 4 hour domestic hop in the back of the bus is not fun after a transatlantic longhaul, US domestic flying sucks for a majority of SK customers today. Add in no global entry for most and the change of terminals at ORD and re-checking bags, you have quite a bit of uncertainty if you will make your connection.
What on earth are you talking about? Currently, SK935 for SFO leaves CPH at 1535, and SK931 for LAX leaves CPH at 0930. When did they leave so early so you couldn't do a connecting flight from ARN or OSL early in the morning? The LAX departure used to be later (1300 when I flew in early 2022) so you could do XXX-ARN/OSL-CPH-LAX in the same day, but that will be difficult today for the poor souls needing a domestic flight to start with, while XXX-ARN/SFO-CPH-SFO still works. My impression is that changing to a domestic flight in the US has always (or at least since 2001) had a bad reputation for being risky compared to doing your transfer at a hub in Europe if that'll get you to your final destination.
ORD has been claimed to be important for freight, so it's probably a route that's possible to run profitably with a slightly lower (passenger) load factor. Air freight rates were quite high during covid but have since come down, so I guess freight revenue helps a bit less in keeping a route alive now than 2-3 years ago.
ORD has been claimed to be important for freight, so it's probably a route that's possible to run profitably with a slightly lower (passenger) load factor. Air freight rates were quite high during covid but have since come down, so I guess freight revenue helps a bit less in keeping a route alive now than 2-3 years ago.
So I would not read too much into it if I were you
Jan 22, 2024, 6:57 am
#582
Join Date: Sep 2003
Location: OSL
Posts: 2,670
Has anyone seen any status matches being offered given the impending exit from *A. Guessing many will wait until an exit date is known but given eg. LH is ramping up their Norwegian schedule a bit surprised to not see a targetted offer for those living in the Nordics? Obviously preference to maintain *G on one airline only for as long as possible but still surprised.
Jan 22, 2024, 7:58 am
#583
Join Date: Aug 2011
Location: CDG
Programs: SK Gold, AF Gold, Marriott Platinum
Posts: 3,750
I wouldn't bet on the exit from *A being quite as "impending". Considering they haven't even submitted the documentation to the EU yet, I think it rather unlikely for the alliance shift to happen before the end of 2024.
Jan 22, 2024, 7:58 am
#584
FlyerTalk Evangelist
Join Date: Mar 2008
Location: Netherlands
Programs: KL Platinum; A3 Gold
Posts: 28,835
Has anyone seen any status matches being offered given the impending exit from *A. Guessing many will wait until an exit date is known but given eg. LH is ramping up their Norwegian schedule a bit surprised to not see a targetted offer for those living in the Nordics? Obviously preference to maintain *G on one airline only for as long as possible but still surprised.
SK hasn't actually left Star Alliance yet and the most appropriate time to offer matches would be once it has actually left.
When bmi left Star Alliance (via its sale to IAG/BA), there were plenty of status match opportunities forthcoming once the deal was done and bmi was no longer in *A. You just have to wait a little longer. But be assured, those status match offers will come.
And anyways, it's not quite a done deal yet; there's still all the regulatory hurdles to be cleared.
I think "intending exit" is a better term than "impending exit"
Jan 22, 2024, 10:48 am
#585
Join Date: Oct 2011
Programs: EuroBonus Diamond, Delta Skymiles 360, BAEC LTG, Hilton Diamond, Marriott Ambassador
Posts: 2,863
Not sure who in their right mind would prefer to connect in ORD for LAX or SFO, rather than make a quick hop to CPH and get on a longhaul to their destination. If going somewhere else on the west coast with no SK flight that changes the proposition. But a 4 hour domestic hop in the back of the bus is not fun after a transatlantic longhaul, US domestic flying sucks for a majority of SK customers today. Add in no global entry for most and the change of terminals at ORD and re-checking bags, you have quite a bit of uncertainty if you will make your connection.
What on earth are you talking about? Currently, SK935 for SFO leaves CPH at 1535, and SK931 for LAX leaves CPH at 0930. When did they leave so early so you couldn't do a connecting flight from ARN or OSL early in the morning? The LAX departure used to be later (1300 when I flew in early 2022) so you could do XXX-ARN/OSL-CPH-LAX in the same day, but that will be difficult today for the poor souls needing a domestic flight to start with, while XXX-ARN/SFO-CPH-SFO still works. My impression is that changing to a domestic flight in the US has always (or at least since 2001) had a bad reputation for being risky compared to doing your transfer at a hub in Europe if that'll get you to your final destination.
ORD has been claimed to be important for freight, so it's probably a route that's possible to run profitably with a slightly lower (passenger) load factor. Air freight rates were quite high during covid but have since come down, so I guess freight revenue helps a bit less in keeping a route alive now than 2-3 years ago.
ORD has been claimed to be important for freight, so it's probably a route that's possible to run profitably with a slightly lower (passenger) load factor. Air freight rates were quite high during covid but have since come down, so I guess freight revenue helps a bit less in keeping a route alive now than 2-3 years ago.