Air France-KLM Group is commencing the process to take over Scandinavian carrier SAS, intending to take a majority shareholding by the second half of next year.

This possibility had previously been outlined nearly two years ago when Air France-KLM became a participant in the consortium that invested in SAS after its US Chapter 11 restructuring.

Air France-KLM holds 19.9% of SAS but the investment plan had included provisions through which its stake could increase, potentially enabling Air France-KLM to become a controlling shareholder.

SAS has already joined the SkyTeam alliance and entered a number of co-operation agreements with the Franco-Dutch operator.

Air France-KLM says its takeover intention is driven by the success of this co-operation, the “significant improvement” in SAS’s financial and operational performance, and its “confidence in [SAS’s] long-term potential”.

Under an investment plan unveiled on 4 July, Air France-KLM says it will initiate measures to acquire fully the shareholdings of consortium partners Castlelake and Lind Invest, which respectively have 32% and 8.6% of SAS.

This will take Air France-KLM’s shareholding in SAS to 60.5%, giving it control of SAS and the majority of its board seats. SAS would become a subsidiary of the group.

Air France-KLM says the scale of the proposed investment will be determined at closing, and be based on SAS’s financial performance including earnings and net debt.

The Danish government will retain its 26.4% shareholding and its board representation. Other stakeholders have the 13.1% balance in SAS.

Air France-KLM says that the “ambition” is to close the transaction – subject to regulatory clearance and certain conditions – in the second half of 2026.

“This new step would allow Air France-KLM and SAS to fully unlock their synergy potential via a comprehensive integration in all areas of business, including loyalty, and would extend beyond commercial activities,” it adds.

SAS chief Anko van der Werff says the acquisition would “mark a defining moment” for the Scandinavian airline, providing a “strong signal of confidence in the direction we’re heading”.

“It brings not just stability but will also allow for deeper industrial integration and the full backing of one of the world’s leading airline groups,” he adds.

SAS will “remain true” to its identity and heritage, he insists, but states: “We will be better-positioned to deliver greater value to our customers, our colleagues, and the wider region.”