The CEO of Scandinavian airline SAS, Anko van der Werff, has called for a renewed wave of airline consolidation in Europe, emphasizing the industry's need for scale and financial resilience amid ongoing economic pressures.
Van der Werff said that while the first phase of consolidation laid the groundwork, “scale still matters, consolidation still matters in this industry. This is a capital-intense and low-margin business, so consolidation is always the name of the game,” News.Az reports, citing foreign media.
His comments came after Air France-KLM confirmed plans to increase its stake in SAS from just under 20% to 60.5%, marking a significant shift in the European airline landscape. Van der Werff welcomed the move, calling it a “very good day” for SAS and adding, “We have a growth path ourselves... and we’re also well positioned within the Air France-KLM group.”
SAS has faced financial turbulence in recent years, including filing for and exiting Chapter 11 bankruptcy in the United States. The airline underwent a major restructuring process, reducing debt and overhauling operations before delisting from the stock market.
Air France-KLM praised SAS’s turnaround in a statement, calling the increased stake a vote of confidence in the Scandinavian carrier's recovery. The company also cited "synergy potential" between the two airlines.
The move highlights a growing trend toward consolidation in Europe’s aviation sector, as carriers deal with rising costs, supply chain disruptions, and stiff competition from both U.S. giants and Middle Eastern airlines.
Despite the positive developments, Air France-KLM shares edged down 0.18% in early Friday trading.
