SAS Group Increased Holding in Spanair

24th Nov 2003

The SAS Group has signed an agreement with Spanair`s other principal
owner, Teinver S.A., which will result in the SAS Group increasing its
ownership holding in Spanair S.A. from 73.9 percent to 94.9 percent at a
price of MEUR 73,5 (MSEK 660).

The price is based on the same valuation of Spanair that was applied
when the SAS Group acquired a majority holding in the airline in 2002.
The remaining 5.1 percent will be retained by Teinver for the time
being, but there is a possibility for the company to sell its remaining
shareholding in Spanair to SAS. The SAS Group is also entitled to
acquire Teinver`s remaining shares in Spanair on the same terms and
conditions as Teinver is able to sell its shares to the SAS Group.

This agreement follows the SAS Group`s strategy of having a full
shareholding in its subsidiaries. It also gives Teinver a corresponding
possibility of selling its remaining shareholding in Spanair. Since the
SAS Group acquired its majority holding in Spanair, Spanair has improved
its profitability and, in its most recent interim report (for the third
quarter of 2003), the airline was able to post a pretax profit of 238

The SAS group regards Spanair as a highly attractive airline, in view of
its favorable position in the Spanish market, which is one of the
largest in Europe in terms of numbers of passengers and anticipated
faster growth than other European markets.

As a member of the Star Alliance, Spanair fulfills a major role for the
SAS Group and the Star Alliance in the Spanish market. Spanair is the
second-largest airline in the Spanish market, with a market share of
slightly more than 27 percent on its domestic routes. The company also
has at its disposal attractive takeoff and landing slots in Madrid,
Barcelona and Palma.
Spanair will continue its efforts to strengthen its position within
Spain and on routes between Spain and northern Europe, as well as
developing further its cooperation with other Star Alliance partners.
Spanair has an extremely competitive cost scenario compared with other
European airlines and the conditions are favorable for very high
profitability and growth in Spanair`s operations through intensified
focus on the business segment.
No changes are planned in the structure of Spanair`s management and
Board of Directors as a result of the transaction.




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