The Air France-KLM Group believes Scandinavian carrier SAS will expand its long-haul network by leveraging its three-hub strategy and transatlantic joint venture with the group. According to Group Chief Ben Smith, SAS’s current long-haul fleet of 12 aircraft is inadequate for the market size and yield.
SAS faces a disadvantage in the US market due to its exclusion from Lufthansa’s transatlantic partnership with United Airlines and Air Canada. However, with the new deal, SAS will partner with Delta Air Lines and Virgin Atlantic, regaining share lost over the years.
Air France-KLM Chief Financial Officer Steven Zaat notes that the company will apply for the enlarged joint venture once merger control has been sighted by the US Department of Transportation. The timeline is uncertain due to DOT’s regulatory process, which took around a year-and-a-half for previous ventures.
SAS stands to gain from Copenhagen Airport’s favorable policies towards aviation and its well-designed infrastructure for connecting passengers between Asia and North America. With Air France-KLM’s support, SAS aims to improve its sales strength outside of Scandinavia and regain lost market share.
Source: https://www.flightglobal.com/airlines/sas-long-haul-expected-to-flourish-with-transatlantic-venture-integration/163670.article