Air France-KLM has taken a 19.9% stake in ailing Scandinavian airline SAS as part of a package with two other investors.

The Dutch-French airline hopes the deal will strengthen its position in the Scandinavian market.

“SAS offers tremendous potential to Air France-KLM,” CEO Benjamin Smith said in a press statement. “This cooperation will allow Air France-KLM to enhance its position in the Nordics and improve connectivity for Scandinavian and European travelers.”

Air France-KLM made the bid as part of a consortium with investment group Castlelake and Lind Invest ApS.

If approved, the consortium, together with the Danish state, will invest $1.175 billion in the airline. Of that $144.5 million (€138 million) will come from Air France-KLM. The investment will not have any impact on the group’s medium-term outlook, the press statement said.

The Swedish and Danish states are currently the biggest shareholders in SAS. After the deal has been completed, Castlelake will be the biggest shareholder, followed by the Danish state and the Air France-KLM consortium.