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SAS to leave Star Alliance and join SkyTeam [eff. 01 Sep 2024]

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Old 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?
  • Yes

10. Can I still use my EuroBonus points on non-airline partners such as rental cars or hotels?
  • Yes
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)
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SAS to leave Star Alliance and join SkyTeam [eff. 01 Sep 2024]

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Old Apr 19, 2024, 5:48 am
  #886  
 
Join Date: Jun 2014
Programs: EuroBonus Diamond
Posts: 169
Originally Posted by gojko88
I genuinely wonder why. Judging by the choice of airlines, it seems your travel is mostly TATL, and as someone who was unquestioningly loyal to *A for a decade (before relocating to CDG), I can attest that DL and especially AF offer a far superior product in any cabin to LH Group or SK itself.

I feel like a lot of prejudice against AF/KL and DL stems from certain preconceived notions that are by now completely outdated.
My experience with having to transit in CDG is a no go. If I was based in Paris then AF would of course be a nobrainer .

I'd much rather transfer through FRA, MUC or Zurich. SK will continue to get a lot of my traffic as I fly around CPH OSL ARN weekly.

And as already mentioned, Biz fares tend to be much more competitively priced with the LH group vs AF/KLM.

We like to vacation in Asia where Skyteam is also not a great option.
MrCharming is offline  
Old Apr 19, 2024, 6:48 am
  #887  
 
Join Date: Dec 2009
Programs: EB*D, M&M, IHG, Hilton Hhonors
Posts: 138
Originally Posted by MrCharming
I'd much rather transfer through FRA, MUC or Zurich. SK will continue to get a lot of my traffic as I fly around CPH OSL ARN weekly.

And as already mentioned, Biz fares tend to be much more competitively priced with the LH group vs AF/KLM.

We like to vacation in Asia where Skyteam is also not a great option.
Agree on all three points here, but I expect LH prices to go up when they introduce their new cabin.
alibi is offline  
Old Apr 19, 2024, 7:56 am
  #888  
 
Join Date: Jan 2012
Location: Koala Lemur
Programs: SK EBD LTG (*G)
Posts: 2,466
Originally Posted by alibi
Agree on all three points here, but I expect LH prices to go up when they introduce their new cabin.
Also, a normal market mechanism is likely to work: if this switch to ST and expected joining some JV is indeed going to lower competition (a bit) then it will have positive influence on prices across the market, also in *A (a bit).
SK2751 is offline  
Old Apr 19, 2024, 7:57 am
  #889  
 
Join Date: Oct 2011
Programs: EuroBonus Diamond, Delta Skymiles 360, BAEC LTG, Hilton Diamond, Marriott Ambassador
Posts: 2,863
Originally Posted by gojko88
I genuinely wonder why. Judging by the choice of airlines, it seems your travel is mostly TATL, and as someone who was unquestioningly loyal to *A for a decade (before relocating to CDG), I can attest that DL and especially AF offer a far superior product in any cabin to LH Group or SK itself.

I feel like a lot of prejudice against AF/KL and DL stems from certain preconceived notions that are by now completely outdated.
Amen!

Originally Posted by dark_phoenix
In the relatively few flight experiences that I have with AFKLM and DL, my issue has never been around soft product. My issue has always been around price.
Unless you have some personal frugality desires that get in the way, pricing issues when doing corporate travel are things you can move past with career advancement. It is not clear if your challenge is that these flights are out of policy for your travel or if the cost issue lies elsewhere. A better product and shorter travel time obviously come at a higher cost.

Flying through AMS and CDG has always been more expensive than flying through CPH, FRA or MUC. When I just focus on TATL, DL's MSP and DTW hubs don't provide me with any significant advantage over United's hubs (especially since none of those are final destinations for me). A* and ST offer similar coverage on the coasts (BOS, MIA, NYC, LAX, SFO, SEA).
UA doesn't fly to ARN anymore so any UA hub you'd use today would require a layover in CPH. How is ARN-CPH-IAD-XXX better than a hypothetical ARN-DTW-XXX? I find DTW and MSP to be much better airports to transit than EWR/IAD/ORD.

So I know some on the forum are touting a direct flight from ARN/CPH to Minneapolis or Detroit as revolutionary, but I don't think it is the flex that they hope it is. And the TPAC and LATAM offerings just aren't as good either in ST. So the more global your travel patterns, the more impacted one likely is with this.
TPAC on KE is totally fine and a great product. CI and GA are fine to, I'll miss SQ and NH for sure but it'll hardly impact travel. LATAM offerings with KL and AF get me everywhere better and faster than SK routing me through EWR/MIA or even LH options.
FlyingMoose is offline  
Old Apr 19, 2024, 8:15 am
  #890  
 
Join Date: Oct 2018
Posts: 1,676
Originally Posted by MrCharming
This is sweet music to my ears! Would love to stick with *A as I'll get LTG this summer and I'm dreading the idea of having to fly a lot of AF/KLM and Delta.
I doubt LH will match the lifetime status from SK. Usually status matches are for one year or so.
tr3k is offline  
Old Apr 19, 2024, 9:36 am
  #891  
 
Join Date: Jun 2014
Programs: EuroBonus Diamond
Posts: 169
Originally Posted by tr3k
I doubt LH will match the lifetime status from SK. Usually status matches are for one year or so.
I meant LTG from SK. Not expecting Lifetime status match from LH although that would be nice :-). But I'd hate to have to start with LH from nothing..
MrCharming is offline  
Old Apr 19, 2024, 9:49 am
  #892  
 
Join Date: Aug 2011
Location: CDG
Programs: SK Gold, AF Gold, Marriott Platinum
Posts: 3,748
Originally Posted by MrCharming
But I'd hate to have to start with LH from nothing..
If starting from nothing, you should choose a better FFP than LH in the first place
the810 likes this.
gojko88 is offline  
Old Apr 19, 2024, 10:34 am
  #893  
 
Join Date: Jun 2014
Programs: EuroBonus Diamond
Posts: 169
Originally Posted by gojko88
If starting from nothing, you should choose a better FFP than LH in the first place
Why?
MrCharming is offline  
Old Apr 19, 2024, 10:53 am
  #894  
 
Join Date: Nov 2014
Location: Probably not too far away from wherever you are
Programs: SAS EBD, Marriott Lifetime Titanium, Hilton Diamond, United MileagePlus Silver, AA Lifetime Gold
Posts: 210
Originally Posted by FlyingMoose
Unless you have some personal frugality desires that get in the way, pricing issues when doing corporate travel are things you can move past with career advancement. It is not clear if your challenge is that these flights are out of policy for your travel or if the cost issue lies elsewhere. A better product and shorter travel time obviously come at a higher cost.
I do have a senior role, but that is also completely irrelevant. If the corporate or retail fares aren't competitive unless you're a senior executive who can work around them, than that is an issue. I don't consider the AFKLM or DL product to be far superior to LH or UA (but they are compared to SK itself). And again, your comment about shorter travel time is only relevant to you based on your travel patterns. Your Mileage Obviously Varies, but your mileage is not the barometer by which everything else should be judged (and neither is mine, FWIW). All I can do is re-state that when it comes to TATL and TPAC, SK and S* today usually provides me with no more than one-connection routing (sometimes two connections, but that is rare for me). As I am *already* flying the shortest distances to the places I fly to the most because they're only one connection away, I am not sure what I would be paying more for. I upgrade quite a bit, so as someone who spends a fair bit of time at the pointy end of the plane, a significantly higher markup for an airplane meal isn't worth it - at least not to me. The seats are mostly what I am after and there is only so much you can do to a reverse herringbone configuration. So looking forward to some amazing seats and suite-like experiences on AFKLM and DL for the higher cost

Originally Posted by FlyingMoose
UA doesn't fly to ARN anymore so any UA hub you'd use today would require a layover in CPH. How is ARN-CPH-IAD-XXX better than a hypothetical ARN-DTW-XXX? I find DTW and MSP to be much better airports to transit than EWR/IAD/ORD.
To answer your question about what hypothetical travel would be different, I can only defer to what I have written before. Most of my flying with S* is ARN-XXX-XXX (I think it's important to compare them objectively...whether the first connection occurs isn't as important as that there is only one connection). When I have described why switching alliances doesn't get me anything, it is precisely because SK long-haul routes or a simple connection to a S* partner already gives me what I need for the places I travel both TPAC and TATL. I don't consider the connections in any of those airports particularly onerous. I am generally okay with most lounge experiences as well (note that I will never defend the SK lounge at EWR under any circumstances - we all know that it is patently awful).

Originally Posted by FlyingMoose
TPAC on KE is totally fine and a great product. CI and GA are fine to, I'll miss SQ and NH for sure but it'll hardly impact travel. LATAM offerings with KL and AF get me everywhere better and faster than SK routing me through EWR/MIA or even LH options.
And all of that is valid for you. And that's cool. It's just not valid for me. So far, it looks like moving to ST will potentially increase my travel time. I hope I am proven incorrect in my assumption, but I will have to wait and see what routes open up.
dark_phoenix is offline  
Old Apr 19, 2024, 10:57 am
  #895  
 
Join Date: Aug 2015
Location: SFO
Programs: AS 75K (OW), SK Silver (*A), UR, MR
Posts: 3,385
Originally Posted by gojko88
If starting from nothing, you should choose a better FFP than LH in the first place
Originally Posted by MrCharming
Why?
🎵 Why, oh why, oh why?
'Cause I don't know the answers.
Goodby goodbye goodbye.

What make the landlord take money?
Why, oh why, oh why?
I don't know that one myself.
Goodbye goodbye goodbye.

Why's there no pennies for ice cream
Why, oh why, oh why?
You put all the pennies in the telephone.
Goodbye goodbye goodbye. 🎵
vanillabean is offline  
Old Apr 19, 2024, 11:49 am
  #896  
 
Join Date: Aug 2011
Location: CDG
Programs: SK Gold, AF Gold, Marriott Platinum
Posts: 3,748
Originally Posted by MrCharming
Why?
Very onerous requirements for reaching *G vs. other FFPs and high surcharges on awards come to mind. Great if LH is your "home" airline and you fly enough to make SEN easily, but other FFPs (like A3, TP or TK) are closer to Eurobonus in terms of qualification levels and status perks.
the810 likes this.
gojko88 is offline  
Old Apr 19, 2024, 1:06 pm
  #897  
 
Join Date: Oct 2018
Posts: 1,676
Originally Posted by MrCharming
I meant LTG from SK. Not expecting Lifetime status match from LH although that would be nice :-). But I'd hate to have to start with LH from nothing..
That just gives you 1 year of status. AFAIK LH does not have any easier qualification requirements for the existing status holders.
tr3k is offline  
Old Apr 21, 2024, 12:59 am
  #898  
 
Join Date: Nov 2013
Location: HEL
Programs: AY, SK, TK
Posts: 7,636
Confirmed saya the article but how confirmed. Cannot read the paid for article.
FFlash is offline  
Old Apr 21, 2024, 1:11 am
  #899  
FlyerTalk Evangelist
 
Join Date: Jul 2011
Location: Tokyo
Programs: JAL Metal Card (OWE), SAS Eurobonus Gold (*G), Marriott Titanium (LTP), Tokyu Hotels Platinum
Posts: 21,524
Originally Posted by FFlash
Confirmed saya the article but how confirmed. Cannot read the paid for article.
Confirmed as in the article states that Lufthansa said so. But I would be surprised if they did not, question will be about the details....
CPH-Flyer is offline  
Old Apr 21, 2024, 1:57 am
  #900  
 
Join Date: Mar 2006
Location: UME 🇸🇪 / NWI🇬🇧
Programs: SJ, SAS, DL
Posts: 1,730
Over on the LH forum, a LH HON** asks what the *A lounge situation will be in ARN, CPH, OSL, GOT from 1st September.

Good question. In the short term, LH might (maybe) pay SK to continue using their lounges on a contract basis. But with LH, LO, LX, and OS I can count at least 25 daily short-haul departures and at least 4,000 available seats departing from each of the SK hubs.

Perhaps one or more of the SK hubs has enough LH Group flights for a LH lounge to be built, or maybe a generic Star Alliance lounge like in AMS?
jamesbrownontheroad is offline  


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