Air France-KLM is eager to increase its existing holding in SAS Scandinavian Airlines, while simultaneously bidding for a controlling stake in Air Europa, Reuters reports.
CEO Ben Smith told the news agency the holding was seeking to boost its existing 19.9% holding in SAS as the carrier continues to meet certain benchmarks such as integration into the Skyteam alliance, of which Air France-KLM is also a member.
The Franco-Dutch group retains the option of becoming a majority shareholder in SAS by late 2026 in terms of the agreement it signed on acquiring its minority share in June 2024. Smith confirmed in an investors' call in March 2024 that it was "in deep talks" with SAS over increasing its stake.
However, SAS CEO Anko van der Werff subsequently said the airline is open to an initial public offering (IPO) to fund growth if Air France-KLM decides not to exercise its option.
Smith also noted AF-KLM had met with Air Europa in early March, confirming earlier reports that it was mulling a stake in the Spanish carrier.
Neither Air France-KLM nor SAS immediately responded to a request for comment from ch-aviation on the reports. An Air Europa spokesperson, meanwhile, declined to comment on the matter.
Along with investment offers from Air France-KLM and Lufthansa Group to acquire 51% and 25% of the company respectively, the Palma de Mallorca-based airline has reportedly also been approached by other suitors, including China's Hainan Airlines, unnamed Middle Eastern funds, and IAG International Airlines Group. The latter abandoned its bid in August 2024 due to fears the merger would run foul of European Commission competition regulators.
