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