The case in summary Norwegian announced on Thursday that they are buying Widerøe for NOK 1.1 billion. It was announced in a stock exchange announcement before the companies themselves confirmed the news at a joint press conference. The two airlines believe this is good news for air passengers, including through integrated travel. The Norwegian Competition Authority must approve the acquisition before it becomes a reality. Experts believe passengers can benefit from the acquisition. The Consumer Council fears a lack of competition which will result in fewer routes and higher ticket prices. The summary is made by an AI service from OpenAi. The content is quality assured by news’s journalists before publication. It came as a big surprise to most people when Norwegian announced on Thursday that they were buying Widerøe. The price tag is NOK 1.1 billion, and the purchase must be approved by the Norwegian Competition Authority. Norwegian and Widerøe said at a press conference on Thursday morning that this is good news for air passengers. The experts, who were surprised by the acquisition, agree. – On domestic flights, this can lead to a better offer, says Frode Steen. He is an economics professor at the Norwegian School of Economics, and justifies his statement as follows: – It will be a much more integrated offer with continuous travel. If you search on Norwegian, you can also get Widerøe’s destinations. – I don’t think the passengers will notice anything in the short term, adds associate professor Espen Andersen at the BI Business School. He also cautions that he does not know all the details. Fears worse offers The Consumer Council’s Thomas Iversen is senior legal advisor. They work to help consumers. Senior legal advisor Thomas Iversen at the Consumer Council. Photo: Erlend Dalhaug Daae / news – We were a little surprised. There are not that many airlines on the Norwegian market, is his first reaction. Iversen points out that it is immediately difficult to say what the acquisition will mean for the passengers. He points out that several of the routes on the short-haul network are sponsored by the authorities, so-called FOT routes, and believes that this offer will be relatively similar in the future. – But when it comes to the offer in general, we have to expect that some routes will either be merged or closed down in the long term. – In other words, risk of a worse offer? – Absence of competition, or reduced competition, always carries with it the risk that the offer will be worse. – In the same way, it is also rarely positive for the prices that the competition is lower. It is difficult to predict, but it will take a lot for it to be cheaper, in any case. – The companies say that the offer to passengers is getting better. Is there no reason to believe them? – The market will of course be able to influence, but it is of course positive that the companies believe it will be good for the customers. Norwegian: – Better for customers Norwegian’s chairman Svein Harald Øygard is clear that passengers will benefit from the two companies now joining forces. At the press conference, he called it “a great day for consumers”. – The acquisition is important for the sake of Norwegian consumers. It provides opportunities for integrated solutions when you are traveling from one place in Norway to another. Norwegian and Widerøe together at an airport. Now they are becoming even more closely linked. Photo: Gorm Kallestad / NTB – It supports the priorities we have at Norwegian to provide a better offer to our passengers, whether they are traveling in Norway, the Nordic countries or out in Europe. Widerøe CEO Stein Nilsen was also clear that Widerøe’s customers will get an even better route offer through the collaboration. SV hopes that is the case. – Widerøe is important for the whole of Norway, and we assume that the new owner will contribute to strengthening the flight offer in the districts going forward, says fiscal policy spokesperson Kari Elisabeth Kaski in SV in an email to news. The acquisition must be approved Before the acquisition becomes a reality, the Norwegian Competition Authority must approve the transaction. Department director Gjermund Nese says they will now assess how the acquisition affects competition in the Norwegian aviation market. – If we come to the conclusion that it leads to a significant weakening of the competition, then we have the opportunity to stop the acquisition, says Gjermund Nese. Thomas Iversen in the Norwegian Consumer Council says they will now closely monitor the process going forward. – An acquisition like this must obviously be approved. We will follow the Competition Authority’s assessments in the future, and the future will show whether this will be approved.
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Norwegian buys the airline Widerøe – Consumer Council concerned about more expensive flight tickets – news Nordland
