Did some digging on the SAS India mess. Their first flight to India in 17 years turned back mid-air over Azerbaijan last week, and ticket sales are now paused till June 16. Turns out the whole thing is about ownership.
Most bilateral air agreements have an old clause called "substantial ownership and effective control". If Denmark designates an airline to fly to India, that airline should be majority owned and controlled by Danes, and India can refuse the permit if it isn't. This has been around since the 1940s and sits in almost every bilateral in the world.
SAS never had this problem earlier. When they last flew to India (Copenhagen to Delhi, until 2009), they were owned by the Danish, Norwegian and Swedish governments along with Scandinavian investors, and India had accepted that three-country structure for decades.
The ownership today looks very different. After their Chapter 11 restructuring, per SAS's own announcements:
Castlelake (US private equity): ~32%
Danish State: 26.4%
Air France-KLM: 19.9%
Lind Invest (Danish family office): 8.6%
Former unsecured creditors: ~13%
The single biggest shareholder is American. Air France-KLM is buying out Castlelake and Lind to reach 60.5%, but that deal closes only in the second half of 2026.
You'd think the EU angle saves them. India has a horizontal agreement with the EU since 2018, where India accepts EU-wide ownership instead of single-country ownership. That's how SWISS flies Zurich to Mumbai and Delhi while being 100% owned by Lufthansa (a German company), and how KLM flies here while sitting inside a French-controlled group.
And that's where this stops adding up. SAS's own EU operating licence requires the same majority EU ownership, and the post-bankruptcy structure was built exactly for that - Danish state, Air France-KLM and Lind together hold about 55%, and Brussels signed off on it. So an airline that clearly clears the 50% bar in Europe couldn't clear it in Delhi.
What's really happening here? Am I missing something?
TNIE EXCLUSIVE: Scandinavian Airlines stops ticket sale from Copenhagan to Mumbai till June 16. Sources
@DGCAIndia said operational authorisation was denied due to incomplete docs & no clarity on ownership.
@SAS assumed they could somehow get into India
@NewIndianXpress @xpresstn