IN BRIEF : SAS Buys Stake in British Airline

Scandinavian Airlines System said today that it has bought a 24.9% stake in Britain’s second-largest airline group, scoring another victory in its global expansion drive.

SAS paid 25 million pounds ($46 million) for the stake in Airlines of Britain Holdings, which owns British Midland, Manx Airlines, Loganair and London City Airways.

The new partnership consolidates SAS’s position as one of Europe’s largest carriers, and the Scandinavian cash injection will allow the group to expand into European routes.

Britain’s Civil Aviation Authority approved the deal, which will keep control of the holding company in British hands, as required by British law.

Industry analysts called the deal a challenge to British Airways PLC’s supremacy at London’s Heathrow Airport. It occurred a year after SAS failed to acquire a minority stake in British Caledonian, which was later taken over by British Airways.

SAS is seeking to secure a global presence in the increasingly concentrated airline industry. In October it purchased a 9.9% stake in Texas Air Corp., parent company of Continental and Eastern airlines.