SAS: The end of an era for Scandinavian excellence
- Paul Aage Hegvik
- Mar 27
- 13 min read
Updated: Mar 28
Air France-KLM is contemplating an increase in its ownership of SAS Scandinavian Airlines, following its initial acquisition of a 19.9% non-controlling stake in August 2024.
CH Aviation reports that this move aligns with SAS's ongoing integration into the SkyTeam alliance, of which Air France-KLM is a prominent member.
Strategic intentions
Ben Smith, CEO of Air France-KLM, emphasized the group's satisfaction with the current partnership and openness to deeper collaboration:
We're very, very happy with how things worked out with SAS, with our 19% stake, with the exit of SAS from Star Alliance and our exclusive ability to go up to a controlling stake. So, we're already in deep talks.
This potential increase in stake is contingent upon SAS achieving key milestones, notably its full integration into SkyTeam.
SAS's perspective
Anko van der Werff, President and CEO of SAS, views this development as a significant opportunity for growth and enhanced cooperation:
This is a historic day that marks the start of an exciting future.
He further highlighted the mutual benefits of the partnership, especially in sustainable aviation efforts:
When I look at who is already using, who is buying most SAF in the world as a percentage, then Air France-KLM and us are number one and two. So I think it’s great to see that the number one and two airlines in the world are teaming up.
SAS: A brief overview
Founded in 1946 through a consortium of Danish, Norwegian, and Swedish national carriers, SAS has established itself as Scandinavia's leading airline. The airline operates main hubs in Copenhagen, Oslo, and Stockholm, serving over 125 destinations across Europe, the US, Africa, and Asia. In the fiscal year 2023, SAS transported approximately 23.7 million passengers.
Leadership and workforce
As of 2025, Anko van der Werff serves as the President and CEO of SAS. The airline employs around 7,000 individuals, contributing significantly to the Scandinavian aviation sector.
Ownership structure
The ownership landscape of SAS has evolved over the years. In August 2024, Air France-KLM completed the acquisition of a 19.9% non-controlling stake in SAS AB. This investment was part of a broader strategy to foster extensive commercial cooperation, which commenced on September 1, 2024.
The potential increase in Air France-KLM's stake in SAS signifies a deepening of their strategic alliance, aiming to enhance operational efficiencies and expand market reach within the European aviation industry.
The recent acquisition of a 19.9% stake in Scandinavian Airlines (SAS) by Air France-KLM has raised concerns about the airline’s diminishing Scandinavian identity. This move will see SAS leave the Star Alliance, which it co-founded, to join the SkyTeam alliance, aligning it more closely with Air France-KLM’s network.
Industry analysts worry that this shift could impact SAS’s operational autonomy and its role within the Scandinavian region. There are also concerns about potential changes to SAS’s hub operations in Stockholm and Copenhagen, with Denmark retaining a 25.8% stake while Sweden has exited completely.
As SAS restructures under new ownership and adapts to its future within the SkyTeam alliance, the long-term impact on its Scandinavian legacy remains uncertain.
Facts and History of Scandinavian Airlines (SAS)
Founded: August 1, 1946, through a merger of the three national airlines of Denmark, Norway, and Sweden:
Det Danske Luftfartselskab (DDL) – Denmark
Det Norske Luftfartselskap (DNL) – Norway
Svensk Interkontinental Lufttrafik AB (SILA) – Sweden
SAS was established to handle intercontinental air traffic for the Scandinavian countries and made its first international flight from Stockholm to New York in 1946.
Ownership structure and changes
Initial Ownership: SAS was originally jointly owned by the governments of Denmark, Norway, and Sweden, along with private investors from the three countries.
Ownership Evolution: Over the decades, the ownership structure has shifted, with increased privatization.
As of 2024:
Denmark: 21.8%
Sweden: 21.8%
Private and Institutional Investors: The remaining shares are held by private and institutional investors.
Major Shift in 2023: Air France-KLM and investment firms Castlelake and Lind Invest acquired a significant stake in SAS as part of a restructuring plan under Chapter 11 bankruptcy protection.
The Norwegian government sold its remaining shares in Scandinavian Airlines (SAS) in 2018, ending its ownership in the airline. At that time, Norway had held a 37.8% stake but gradually reduced its holdings over the years before completely exiting.
Currently:
Denmark retains a 25.8% stake in SAS after the recent restructuring.
Sweden fully exited SAS ownership in 2024 following the acquisition by Air France-KLM and private investors.
Norway has had no ownership stake in SAS since 2018, marking a complete departure from its involvement in the airline.
This means that, as of today, Norway has no financial or ownership interest in SAS.
Reactions in Denmark and Sweden to the SAS sale
The recent sale of Scandinavian Airlines (SAS) shares has sparked different reactions in Denmark and Sweden, reflecting contrasting national perspectives on the airline’s future.
Denmark: Commitment to maintaining influence Denmark has increased its stake in SAS to 25.8%, signaling a strong desire to retain influence over the airline’s strategic decisions. This move is widely seen as an effort to protect Copenhagen Airport’s status as a major hub in the airline’s network. Many in Denmark are optimistic that this increased ownership will help maintain Copenhagen’s importance in Scandinavian aviation, ensuring that the airport remains a key transit point for international travelers.
Sweden: A complete exit from SAS Sweden, on the other hand, has completely divested its shares in SAS, marking a full departure from its ownership role. This decision reflects Sweden’s long-standing reluctance to inject additional capital into the airline. While some view this move as a sensible financial decision, distancing Sweden from SAS’s ongoing financial struggles, others are concerned that the country has lost its influence over a national symbol that has connected Sweden to the world for decades.
Public and industry reactions Public and industry reactions have been mixed in both countries. In Denmark, there is cautious optimism that greater national control will strengthen Copenhagen’s role as a hub, while in Sweden, opinions are divided between those who see the exit as financially prudent and those who worry about the loss of national influence in a once-proud Scandinavian airline.
As SAS transitions under its new ownership, the differing reactions in Denmark and Sweden highlight the complex relationship between national interests, economic realities, and the future of aviation in the region.
Italia and Switzerland?
The sale of Scandinavian Airlines (SAS) and the mixed reactions in Denmark and Sweden bring to mind similar situations in Italy and Switzerland, where their national airlines went through major transitions.
Italy: Alitalia to ITA Airways
Alitalia, Italy’s national airline, faced financial collapse and was replaced by ITA Airways in 2021. The transition was met with national disappointment, similar to the reaction in Sweden after SAS’s sale.
Key similarities
Loss of national pride: Just as Swedes feel disconnected from SAS after the sale, Italians saw the end of Alitalia as the loss of a national symbol.
Government efforts to maintain control: Italy’s government tried to protect its influence over ITA Airways, much like Denmark’s increased stake in SAS.
Switzerland: Swissair to SWISS
Swissair collapsed in 2001 and was replaced by SWISS, which was later acquired by Lufthansa Group. Although SWISS was foreign-owned, it kept its Swiss identity, similar to SAS retaining its brand after the sale.
Key similarities
Foreign ownership concerns: Swiss citizens were initially concerned about losing control over SWISS, echoing concerns in Scandinavia about SAS.
Hub protection: Switzerland maintained Zurich as a major hub under SWISS, just as Denmark hopes to preserve Copenhagen Airport’s importance through its increased stake in SAS.
Main differences
Complete rebranding in Italy: Alitalia disappeared, replaced by ITA Airways, while SAS will continue operating under its original brand.
Smoother transition in Switzerland: The SWISS transition was more accepted by the Swiss public compared to the mixed emotions surrounding the SAS sale.
Key milestones and achievements
First Polar Route (1954): SAS pioneered the world’s first transpolar route, flying from Copenhagen to Los Angeles via the North Pole, shortening travel time between Europe and North America.
Founding Member of Star Alliance (1997): SAS was one of the five founding members of the Star Alliance, the world’s largest airline alliance.
Introduction of Economy Extra (1992): SAS was one of the first airlines to introduce a premium economy class, offering more comfort and amenities for long-haul travelers.
Awards and recognitions
Best Airline in Northern Europe: SAS has been awarded this title multiple times by Skytrax, recognizing its commitment to quality service.
Sustainable Aviation Leadership: SAS has been acknowledged for its efforts in reducing carbon emissions and advancing sustainable aviation fuel (SAF) technologies.
World Travel Awards: SAS has received accolades for its operational excellence and customer service.
Legacy and contributions
Innovations in Air Travel: SAS was a pioneer in introducing in-flight entertainment and advanced navigation systems, enhancing passenger experience and safety.
Promoter of Scandinavian Design and Culture: SAS has showcased Scandinavian design and hospitality to the world through its onboard services and cabin interiors.
Commitment to Sustainability: SAS has consistently worked toward reducing its environmental impact, with goals to achieve net-zero emissions by 2050.
Recent developments and future outlook
Chapter 11 Restructuring (2023): SAS entered Chapter 11 bankruptcy protection in the United States to restructure its operations and financial position.
New Ownership Structure (2024): Air France-KLM and private investors acquired a stake in SAS, potentially integrating SAS into the Air France-KLM network while maintaining its Scandinavian identity.
SAS continues to be a significant player in European aviation, with a strong reputation for innovation, service quality, and sustainability.
SAS under Jan Carlzon: How customer focus transformed the airline
Jan Carlzon, CEO of Scandinavian Airlines (SAS) from 1981 to 1994, led the airline through a period of remarkable success by revolutionizing the customer experience.
His leadership, defined by a strong focus on empowering employees and enhancing service quality, turned SAS from a struggling airline into one of the most profitable and respected carriers in the world. Carlzon’s legacy continues to influence customer service practices across industries today.
A troubled airline on the brink
When Carlzon took over as CEO in 1981, SAS was in crisis. The airline was facing financial difficulties, customer satisfaction was at an all-time low, and competition from other European carriers was intensifying. SAS was losing market share, and the outlook was bleak.
Carlzon immediately recognized that SAS needed a radical change in strategy. His approach was simple but transformative: focus on the customer. By improving the experience of business travelers — a core segment for SAS — and empowering employees to make decisions that benefited customers, Carlzon laid the foundation for one of the greatest turnarounds in airline history.
The «moments of truth» philosophy
One of Carlzon’s most influential ideas was the «Moments of Truth» philosophy. He believed that every interaction between a customer and an employee — whether on the phone, at check-in, or onboard — was an opportunity to create a positive experience.
«If you’re not serving the customer, your job is to be serving someone who is» Carlzon famously said.
This principle drove a cultural shift within SAS, where frontline employees were empowered to take ownership of customer interactions and make decisions that improved passenger satisfaction.
By recognizing that thousands of small, positive interactions could shape a customer’s perception, Carlzon transformed SAS into a service-driven organization where employees felt valued and motivated.
Scandinavian leadership: Empowerment and trust
In Scandinavia, leadership is built on trust, decentralization, and equality. Employees are empowered to make decisions and solve problems independently, reflecting the region’s strong belief in egalitarian principles and flat hierarchies. Scandinavian leaders, like Carlzon, prioritize open communication and employee autonomy, fostering a culture where frontline staff take ownership of customer experiences.
American leadership: Hierarchy and control
In contrast, American corporate culture tends to be more hierarchical and process-driven. Decision-making is often centralized, with frontline employees expected to defer to supervisors or higher management for approval. While this approach can ensure consistency and control, it can also lead to inefficiencies and delays, as Carlzon witnessed at JFK.
The impact on SAS and beyond
Carlzon’s decision to empower SAS employees to take responsibility for customer interactions reflected Scandinavian values of trust and accountability. This approach not only transformed SAS but also became a model for service industries worldwide, showing that empowered employees deliver better customer experiences.
Key innovations and achievements
Introduction of EuroClass and premium services
Carlzon identified that business travelers were the most frequent and loyal customers of SAS. To cater to their needs, he introduced EuroClass in 1982 — a new class that combined elements of business and economy class to offer enhanced comfort and flexibility for European business travelers.
EuroClass was a pioneering concept that inspired the development of today’s premium economy cabins, providing a middle ground between economy and business class.
SAS becomes the world’s most punctual airline
Carlzon placed a strong emphasis on operational efficiency, ensuring that SAS became synonymous with reliability. By implementing systems to monitor and improve on-time performance, SAS achieved a reputation as one of the world’s most punctual airlines.
Empowerment of frontline employees
Carlzon believed that frontline employees had the most significant impact on customer satisfaction. He empowered them to make real-time decisions without needing approval from higher management, allowing them to resolve customer issues quickly and effectively.
Winning Airline of the Year in 1984
Under Carlzon’s leadership, SAS was named «Airline of the Year» by Air Transport World in 1984, an acknowledgment of the airline’s impressive turnaround and its commitment to customer satisfaction.
Carlzon’s leadership style and vision
Carlzon’s approach to leadership was unconventional for the airline industry. He emphasized flat hierarchies, open communication, and decentralization, giving frontline employees greater authority and encouraging innovation at all levels.
«You cannot improve one thing by 1000%, but you can improve 1000 little things by 1%,» Carlzon often said. This philosophy encouraged continuous improvement and a focus on the small but meaningful changes that collectively transformed the customer experience.
The lasting impact of Jan Carlzon’s leadership
SAS’s success under Jan Carlzon was not just about operational efficiency — it was about redefining customer service in the airline industry. His focus on empowering employees and enhancing service quality had a lasting impact not only on SAS but also on global service industries.
Carlzon documented his strategies and insights in his best-selling book, «Moments of Truth» published in 1985. The book remains a classic guide for leaders in customer service and business management, inspiring organizations worldwide to focus on customer satisfaction and employee empowerment.
Departure and continued influence
Carlzon stepped down as CEO in 1994 after 13 transformative years at SAS. During his tenure, SAS went from being a struggling airline to a global industry leader, demonstrating that customer-centric leadership can drive both financial success and customer loyalty.
Even after leaving SAS, Carlzon’s principles continue to resonate in the business world. His belief that every interaction between a customer and a company is an opportunity to build trust and loyalty remains a cornerstone of modern customer service practices.
Golden period
Jan Carlzon’s era at SAS was a golden period that showcased how a relentless focus on customer satisfaction and employee empowerment can turn around even the most troubled companies. His vision of «moments of truth» reshaped the airline industry and set a new standard for service excellence that continues to inspire leaders around the world.
Empowered the employees
SAS employees thrived under Jan Carlzon’s leadership because he empowered them to make decisions that improved customer satisfaction. By decentralizing authority and promoting open communication, Carlzon gave frontline staff the confidence to handle «Moments of Truth,» where customer perceptions were shaped. Employees felt valued, trusted, and recognized, fostering a culture of motivation and commitment that contributed to SAS’s success.
SAS after Jan Carlzon’s era
After Jan Carlzon’s departure in 1994, SAS faced increasing competition from low-cost carriers and rising operational costs. Despite maintaining a strong reputation, SAS struggled with profitability and underwent multiple restructurings.
Key developments
Privatization and ownership changes SAS gradually reduced government ownership, and by 2024, Air France-KLM and private investors acquired significant stakes following a financial restructuring.
Operational challenges SAS filed for Chapter 11 bankruptcy protection in 2022 to reorganize its finances and reduce debt.
Increased focus on sustainability SAS committed to achieving net-zero emissions by 2050 and invested in sustainable aviation technologies.
A famous example: John F. Kennedy Airport (JFK) in chaos
The story about Jan Carlzon at Kennedy Airport is one of the most famous examples of his empowerment philosophy in action, and it perfectly illustrates his «Moments of Truth» approach.
Shortly after Carlzon became CEO of SAS in 1981, he was traveling through John F. Kennedy Airport (JFK) in New York. During his visit, he witnessed a scene of total chaos — flights were delayed, passengers were confused, and they were all seeking information. However, the airport staff repeatedly told passengers that they had to wait for the supervisor to get any answers or assistance.
Carlzon’s immediate response
Without revealing his identity as the CEO of SAS, Carlzon stepped in and said:
«From now on, everyone in this company has the authority to make decisions to help the customers. You don’t need to wait for the supervisor».
The staff was shocked by this directive, as it was a complete departure from the traditional airline hierarchy where only supervisors had the authority to make decisions.
The Impact
This moment marked the beginning of Carlzon’s customer-focused revolution at SAS. He firmly believed that frontline employees should be empowered to handle customer situations directly and efficiently. This policy was central to his turnaround strategy and led to a dramatic improvement in customer satisfaction and operational efficiency.
Carlzon’s philosophy in action
This incident at JFK Airport became a defining «Moments of Truth» where Carlzon’s commitment to empowering employees became evident. It was a clear demonstration of his belief that every employee has the power to positively impact the customer experience, a principle that helped transform SAS into a leading airline during his tenure.
