Air France-KLM Takes SAS Stake in $1.2 Billion Restructuring (1)

SAS AB chose Air France-KLM and private equity firm Castlelake LP to anchor a $1.18 billion investment in the bankrupt Scandinavian flag-carrier, ending a five-month chase for new capital.

Air France-KLM will invest up to $144.5 million and receive as much as a 19.9% of SAS, with the option to take a controlling interest after two years under certain conditions, according to a statement Tuesday.

SAS AB passenger aircraft on the tarmac at Copenhagen Airport in Copenhagen, Denmark.

Photographer: Carsten Snejbjerg/Bloomberg

The deal promises to further the post-Covid consolidation of Europe’s aviation industry around Air France-KLM and two other major carrier groups, Deutsche Lufthansa AG and IAG SA. IAG is taking over Spain’s Air ...