SAS CEO has been candid about the motivations behind this strategic shift. He likened the airline's prolonged association with Lufthansa within Star Alliance to an unfulfilling marriage, noting that despite decades of collaboration, SAS was excluded from the lucrative transatlantic joint venture (JV) involving Lufthansa, United Airlines, and Air Canada. Van der Werff emphasized SAS's commitment to integrating into the Air France-KLM transatlantic JV.
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SASScandinavian Airlines (SAS) is undergoing a significant transformation, shifting its alliance allegiance and forging new strategic partnerships to enhance its transatlantic operations.
Transition from Star Alliance to SkyTeam
In October 2023, SAS announced its decision to leave Star Alliance, a group it co-founded in 1997, and join SkyTeam. This move was solidified by Air France-KLM acquiring a 19.9% stake in SAS, aiming to strengthen commercial ties and improve connectivity for Scandinavian travelers. The transition was completed on September 1, 2024, when SAS officially became a member of SkyTeam.
Strategic Rationale and Future Plans
SAS CEO Anko van der Werff has been candid about the motivations behind this strategic shift. He likened the airline’s prolonged association with Lufthansa within Star Alliance to an unfulfilling marriage, noting that despite decades of collaboration, SAS was excluded from the lucrative transatlantic joint venture (JV) involving Lufthansa, United Airlines, and Air Canada. This exclusion hindered SAS’s ability to fully capitalize on transatlantic market opportunities.
Determined to rectify this, van der Werff emphasized SAS’s commitment to integrating into the Air France-KLM transatlantic JV. He stated, “We shall be part of the Air France-KLM transatlantic joint venture. It is not just a goal. It is what will happen.”
This integration is anticipated to unlock a new era of collaboration for SAS, enhancing its transatlantic offerings and providing passengers with improved connectivity and services. The partnership aims to leverage the strengths of both SAS and Air France-KLM, creating a more competitive and comprehensive transatlantic network.
Enhanced Customer Benefits
As part of its transition to SkyTeam, SAS has established codeshare and interline agreements with Air France and KLM. These agreements, effective from September 1, 2024, offer reciprocal loyalty program benefits, allowing EuroBonus members to enjoy similar perks across most SkyTeam airlines. This development significantly enhances the travel experience for SAS customers, providing them with a broader network and more seamless travel options.
In summary, SAS’s strategic realignment from Star Alliance to SkyTeam, bolstered by its partnership with Air France-KLM, marks a pivotal shift aimed at strengthening its transatlantic presence and offering enhanced value to its customers.
Implications for the SAS EuroBonus Loyalty Program
The transition from Star Alliance to SkyTeam also brings significant changes to SAS’s EuroBonus loyalty program, impacting its 1.2 million active members. As part of its integration into Air France-KLM’s Flying Blue ecosystem, EuroBonus members will gain access to a wider range of redemption and accrual opportunities, particularly across SkyTeam carriers like Delta Air Lines, Air France, KLM, and Virgin Atlantic. While some Star Alliance benefits will be phased out, the new partnership is expected to provide enhanced travel perks, such as priority boarding, additional baggage allowances, and lounge access across the SkyTeam network. This move positions EuroBonus for a more competitive offering, particularly for transatlantic travelers who will now have seamless connectivity with Air France-KLM’s U.S. hub partners. The ultimate goal is to align EuroBonus more closely with Flying Blue, potentially leading to a future harmonization or deeper integration of both programs, further strengthening SAS’s appeal among frequent travelers.
Source: GLO
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