NEW YORK -- Scandinavian Airlines System is acquiring a majority
stake in Spanair, which will try to return to profitability by
focusing on its domestic services and closing down its remaining
long-haul operations next year.
Spanair also is looking to cut its distribution and personnel
costs and join the Star Alliance, of which SAS already is a
member.
SAS's ownership of Spanair will rise from 49% to 74%.
The transaction is subject to European Union approval and is
expected to close in mid-December.