DALLAS — Air France-KLM (AF-KL) is pushing through negotiations to take a majority stake in Scandinavian airline SAS (SK). What are the ramifications?

First, SK will become a full-fledged part of the AF-KLM group if the deal goes through. While we knew of the investment in October 2023, we did not have much to go on in Q423. But according to One Mile at a Time's Ben Schlappig, SK is scheduled to emerge from Chapter 11 bankruptcy protection by the end of the Q224, estimated around June.

Last October, AF-KL announced it was acquiring SK with a consortium of investment companies Castlelake and Lind and the Danish state. Initially, AF-KL will get 19.9 percent of the shares, but this stake may be increased later. "In-depth" negotiations are underway to increase the stake.

In addition, AF-KLM CEO Ben Smith has indicated that SK may switch from airline alliance Star Alliance to SkyTeam, which includes AF-KL and partners, founder Delta Air Lines (DL), and Virgin Atlantic (VS), in the second quarter of this year.

Air France-KLM and SK's networks are also becoming increasingly aligned, such as the announcement that SK will fly between Copenhagen and DL's hub in Atlanta starting next summer. In time, SK will also become part of the transatlantic joint venture with the Americans.

Air France-KLM does not expect any significant problems with the competition authorities. However, slots must be surrendered at Schiphol Airport (AMS)to get approval since SK and KL are quite dominant between Scandinavia and Amsterdam.

For the month SK is set to exit its Chapter 11 bankruptcy protection, the Scandinavian carrier has more than 20,000 scheduled flights, according to Cirium Diio data. This equals more than 3 million seats, or almost 2.5 billion ASMs monthly—a nice addition for AF-KL and SkyTeam.