My Account Menu

CAPA Login

Register to trial CAPA Membership!

Norwegian to become largest Scandinavian carrier in two years? GOL to raise capital


Norwegian Air Shuttle's shares gained 9.5% on Tuesday, after Danish daily, Jyllands-Posten, reported the LCC would outgrow its larger rival, Scandinanvian SAS, in two years, based on current passenger trends.

Two years ago, Norwegian Air Shuttle was a quarter the size of SAS, and has grown to become approximately half the size of its larger, yet struggling, competitor. See related article: SAS & LCCs: Denmark’s international LCC capacity share in decline, domestic share stabilises.

GOL plans share issue

In the Americas, GOL's shares were up marginally (+0.8 ppts) on Tuesday, the same day the LCC announced plans to raise capital through a public share subscription. The carrier plans to issue 17.3 million common shares and the same number of preferred shares. It could add preferred shares up to an equivalent of 20% of the main offer. The company provided no price or date for the offer.

Elsewhere, Southwest's shares were down 2.8%, while Allegiant slumped 4.4%.

Selected LCCs daily share price movements (% change): 22-Sep-09

Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.