SAS exits Chapter 11 process, sees Air France-KLM with 20% of the company
SAS Scandinavian Airlines announced on Wednesday that it has emerged from the US Chapter 11 process after just over two years under bankruptcy protection.
During that time, the Scandinavian company has restructured more than $2 billion in debt while receiving a $1.2 billion investment from a consortium formed by the Castlelake funds, Lind Invest, the Danish government and the Air France-KLM Group.
“This is a historic day that marks the start of an exciting future for SAS’ customers, partners and colleagues. We have successfully completed our restructuring proceedings and we are now entering a new era,” said Anko van der Werff, CEO of SAS.
Shrouded in mounting debt, exacerbated by the Covid pandemic, SAS filed for Chapter 11 protection in the US in July 2022.
Since then, the carrier has revamped its flight network and fleet, which now consists of 134 aircraft.
Founded in 1946 with the participation of the governments of Sweden, Denmark and Norway, SAS was an early member of the Star Alliance, but will leave the alliance on September 1 to join SkyTeam.
The change reflects the 19.9% stake held by the Air France-KLM Group, with which SAS is expected to increasingly strengthen its operations.
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