SAS leaving the Star Alliance group of airlines, with their last day being August 31, will have significant impacts on the airline industry. As the flag carrier for Denmark, Norway, and Sweden, SAS found itself in deep financial trouble, leading to a major corporate restructuring. As a result, Air France-KLM acquired a shareholding in SAS and the airline decided to leave the Star Alliance to align better with its new partners in the SkyTeam alliance. This marks the first time a founding member of the Star Alliance has left since its establishment in 1997.
SAS filed for Chapter 11 bankruptcy in July 2022 in the United States under the supervision of the U.S. federal courts. This legal pathway is commonly used by airlines to reduce costs and undergo financial restructuring. The move to leave the Star Alliance and join SkyTeam will allow SAS to better position itself for success with its new partners such as Air France-KLM, Delta Air Lines, and other major carriers within the SkyTeam alliance.
The transition for SAS from the Star Alliance to SkyTeam will take place on September 1, with customers expected to enjoy benefits with most SkyTeam airlines. The EuroBonus loyalty program of SAS will be retained, with members being able to earn and redeem loyalty points with the 19 carriers within the SkyTeam alliance. Negotiations are underway to establish commercial partnerships with SkyTeam members, ensuring a smooth transition for SAS customers.
While SAS leaving the Star Alliance will impact other loyalty programs such as United’s MileagePlus, there are still 17 other Star Alliance members offering direct flights to Scandinavia. While this is a setback for Star Alliance in northern Europe, there are still opportunities for growth and expansion within the region. The loss of SAS may lead to other Star Alliance members offering additional services to Scandinavia in the future to compensate for the departure of the Scandinavian carrier.
Overall, SAS leaving the Star Alliance and joining SkyTeam marks a significant change in the airline industry, with potential benefits for both SAS and their customers in terms of loyalty programs and partnerships. Despite the challenges faced by SAS, the move to align with new partners within the SkyTeam alliance is seen as a strategic decision to ensure the airline’s future success. The impact of SAS leaving the Star Alliance will be felt beyond Scandinavia, with implications for other loyalty programs and alliances in the industry.
