Air France-KLM will initiate the process of raising its minority stake in Scandinavian airline SAS AB to 60.5%, as it looks to extend consolidation in the European aviation industry and better compete with rivals Deutsche Lufthansa AG and British Airways owner IAG SA.

Air France-KLM aims to own 60% of the Scandinavian airline, which said that the deal is "essential to ensuring long-term competitiveness."

Air France-KLM plans to increase its stake in Scandinavian airline SAS to 60.5%, the latest step towards consolidating Europe's fragmented airline sector as carriers seek to strengthen their position against rivals.