Air France-KLM announced Friday that it will take a majority stake in Scandinavian Airlines, the national airline of Denmark, Norway, and Sweden.

Air France–KLM will initiate proceedings to take a majority stake in SAS, marking a strategically important chapter for the Scandinavian carrier.

Air France-KLM will increase its ownership of SAS by buying out the stakes of private equity group Castlelake and Lind Invest, the family office owned by Danish billionaire Henrik Lind. The Danish state will retain its 26.4 per cent stake and remain on the company’s board.