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we should consider changes to Nats price control arrangements we will take appropriate steps. Following the review, the CAA will consider the findings and any further steps (such as enforcement action).” A senior airline source
confirmed: “Pressure from the airlines had an impact. Nothing will move particularly fast, but the learnings will be important.” The Nats system failure was
separate from the continuing ATC issues at Gatwick where a shortage of controllers is causing periodic delays and cancellations and threatens to continue into next year. Nats is split into two providers – Nats En-Route (NERL), which provides UK ATC, and Nats Services, which operates ATC at airports in the UK and overseas. Gatwick extended a cap on
flights to October 15 last week in what it called a “precautionary measure to prevent delays and last-minute cancellations”. The cap was imposed in late September with almost a third of the airport’s 30 ATC staff off sick. Nats took over Gatwick ATC
in October last year following issues with the previous operator, having lost the airport contract in 2016. It blames a “significant shortfall in staff we inherited” for the current problems, though this is contested. Airport controllers can’t
simply move between airports, with the issue compounded at Gatwick by it having the world’s busiest single runway. Nats argues: “The lack of resilience can be addressed only by recruiting and training additional controllers which takes considerable time.” Gatwick said it expects “a full service for summer 2024”.
SAS accepts €1.17bn bid in Air France-KLM swoop
Ian Taylor
SAS Scandinavian Airlines will cease to be Scandinavian-controlled following a deal with Air France- KLM and US-based private equity firm Castlelake last week. The SAS board accepted a
$1.175 billion bid from a consortium led by Castlelake and Air France-KLM for the airline, once the flag carrier of Denmark, Norway and Sweden. Air France-KLM will initially
take a 20% stake in the carrier, but the agreement includes provisions whereby “Air France-KLM may become a controlling shareholder after a minimum of two years, subject to regulatory conditions and financial performance”. The Swedish government will
forfeit its 22% stake in SAS, leaving the Danish state holding almost 26%, alongside Castlelake with 32% and Danish investment firm Lind Invest just under 9%, with the remaining shares held by creditors. The
Takeover mirrors that by Lufthansa in ITA Airways
Air France-KLM’s involvement in the takeover of SAS mirrors, in part, that which saw Lufthansa Group acquire 41% of Italian carrier ITA Airways – successor to Alitalia – in May this year. The ITA deal remains subject
to regulatory approval but gives Lufthansa the option to take full control of the airline.
62 12 OCTOBER 2023
Carsten Dilling
Norwegian government sold its stake in SAS in 2018. Details of the takeover “remain to
be finalised” and subject to “certain conditions and regulatory approvals”, including by the EC and US and Swedish courts. SAS has been in Chapter 11 bankruptcy protection in the US since July 2022. The initial deal will cost Air France-
KLM $145 million. Benjamin Smith, Air France-KLM chief executive, said: “With its well-established position
Lufthansa’s move will see ITA
switch from the SkyTeam alliance led by Air France-KLM to the Lufthansa-led Star Alliance and give the German carrier a bigger presence in the important inbound market to Italy (Travel Weekly, June 1). Air France-KLM has a similar
option to take control of SAS after two years, giving it an enlarged presence in the important Scandinavian outbound market, while the deal will see SAS switch from the Star Alliance to SkyTeam. In the meantime, Air France-
KLM “will seek to establish a commercial cooperation between its
in Scandinavia and strong brands, SAS offers tremendous potential. Air France-KLM looks forward to establishing strong commercial ties with SAS. This cooperation will allow Air France-KLM to enhance its position in the Nordics.” SAS noted in a statement that it
“will continue to operate as usual throughout the implementation of the transaction”. Carsten Dilling, SAS chairman,
said: “We’re confident the selected bid is the most favourable for SAS.” SAS president and chief executive
Anko van der Werff added: “The investment shows our new investors believe in our potential to remain in the forefront of the airline industry.” SAS will seek US approval for
the deal in early 2024 and hopes to gain Swedish approval later next year. However, the go-ahead from regulators may face uncertainty over the outcome of an EC review of $356 million in pandemic-era state aid to SAS by Denmark and Sweden.
SAS
airlines and SAS”. In a statement, Air France-KLM noted its “ambitions to enhance the group’s footprint in Scandinavian markets”, adding: “Air France-KLM is determined to play an active role in the consolidation of European aviation.”
travelweekly.co.uk
PICTURE: Magnus Länje
PICTURE: Samere Fahim
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