Shares in Scandinavian airline SAS plunged by 95% as markets opened on Wednesday, after the company announced a restructuring deal late on Tuesday that will see it delisted from exchanges. Losses have since pared back, with shares last down by around 83% at 7:26 a.m. ET. The share dive comes after the airline on Tuesday said that U.S. investment firm Castlelake and fellow aviation company Air France-KLM will become the new major shareholders of SAS and hold around 32% and 20% of the company, respectively. The Danish government is expected to own roughly 26% of SAS, whilst Danish investment firm Lind Invest will have a 8.6% stake, according to SAS. “All of SAS AB’s common shares and listed commercial hybrid bonds are expected to be cancelled, redeemed and delisted,” SAS said in a statement on Tuesday, adding that this process is expected to take place in the second quarter of 2024. The development follows years of financial difficulties for SAS. The airline filed for bankruptcy protection in the U.S. in July 2022 amid mounting pressures from pilot strikes and low demand in the wake of the Covid-19 pandemic. SAS also said it would eventually leave airline group Star Alliance, of which it is a founding member, and become part of the Sky Team Alliance, which is associated with Air France-KLM. The move could impact the airline industry and especially the dynamic between Sky Team and Star Alliance, Jacob Pedersen, head of equity research at Sydbank said Wednesday. “It shifts strength towards Sky Team, not least in the Nordic region, where some Star Alliance airlines might have to reconsider their presence or at least change strategy because they will now lose SAS as an alliance partner in this space,” he said.<br/>
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Air France KLM’s plan to buy a stake in troubled Scandinavian carrier SAS AB gives the long-overdue consolidation of European airlines a jolt as more regional operators come under the control of three big groups. The Franco-Dutch carrier said on Tuesday that it will invest as much as $144.5m for 19.9% of SAS, with the option to take a controlling interest after two years. At the same time, the company reiterated its interest in Portuguese airline TAP SA, which the government has put up for sale. “The challenges of restructuring SAS are considerable, but if the team can square this circle, the rewards can be too,” analysts at Bernstein wrote in a note after the deal was announced. US Chapter 11 bankruptcy rules mean that existing SAS shareholders, including stakes held by the governments of Sweden and Denmark, will get wiped out. SAS stock fell as much as 96% when trading started in the Swedish capital on Wednesday, hitting an all-time low of 0.01 kronor. Air France rose as much as 2% in Paris trading. Air France-KLM CEO Ben Smith is emulating a regional expansion championed by his two big rivals. IAG SA owns assets including British Airways, Iberia and Vueling, while Germany’s Deutsche Lufthansa has expanded south with Swiss and Austrian Airlines. The Franco-Dutch carrier previously owned a 25% stake in Italian flag carrier Alitalia Spa after the government placed the storied airline into bankruptcy. In 2017, Air France-KLM also agreed to buy a stake in Virgin Atlantic for GBP220m as part of a three-way venture with Delta. It later dropped the plan in favor of an expanded trans-Atlantic partnership. All three European majors are now actively engaged in deals. Lufthansa wants to buy a stake in ITA Airways, Alitalia’s successor, with a view to eventually adding the rest. IAG announced in February that it would seek to buy full control of Spanish airline Air Europa for E400m, more than a year after the Covid pandemic and antitrust concerns scuttled a previous accord. <br/>
This winter, Aegean Airlines is expanding its route schedule to offer the largest number of routes in its history. The airline will be adding 18 new routes in 14 different countries. Aegean Airlines announced on Monday that it will be introducing new destinations in the Middle East, North Africa, the Balkans, and Europe. These new routes will connect Athens with Dubai, Luxor, Sharm El Sheikh in Egypt, Innsbruck, Bratislava, Baku, Chisinau, and for the first time, Cairo with Thessaloniki. Starting from November 10, the airline will operate flights to Dubai six times a week. With a high demand for this destination, Aegean Airlines aims to attract more passengers, particularly those on transit flights.<br/>
ANA has unveiled a special green livery for one of its DHC8-Q400 aircraft. From October 23, 2023, the newly painted aircraft will be raising awareness about ANA’s sustainability initiatives as it operates regional routes throughout the Japanese isles. Since 2021, ANA’s ‘Future Promise Jet’ is the name under which the airline has gathered several projects aimed at reducing the environmental impact of its operations. In this instance, the DHC8-Q400 aircraft will not only raise awareness through the special livery but will also include a number of other features highlighting the airline’s commitment to sustainability. For example, the fuselage has been fitted with a thin film-like material, produced by Nikon Corporation, which adds a riblet texture, producing what is known as ‘shark skin effect’ for added aerodynamics. The technology in question has been tested in recent years by airlines such as Lufthansa. ANA now intends to try it out in order to evaluate the possibilities this material offers when it comes to lowering air resistance and the subsequent contribution to CO2 emissions reduction. The aircraft’s safety instructions card, meanwhile, will be made from crushed scallop seashells. This organic material is produced by Koushi Chemical Industry by crushing scallop seashells collected around Sarufutsu Village, in Hokkaido, Japan’s northernmost island. <br/>