The right fit? LCC Norwegian to buy Norway's biggest regional airline Widerøe

Premium Analysis

On 6-Jul-2023 the low cost airline Norwegian Air Shuttle announced that it had agreed to buy Widerøe - a regional airline also based in Norway.

Norwegian will pay NOK1,125 million (EUR98 million) in cash from available funds, subject to some adjustments after closing, including in connection with Widerøe's profitability in 2023. The transaction, which is subject to review from competition regulators, is expected to close by the end of 2023.

The two airlines will continue to operate under their own brands, with Widerøe remaining a separate business unit and employees retaining existing collective agreements.

Buying Widerøe could grow Norwegian's bottom line by improving domestic feed, but the risks include a possible loss of management focus as it grafts the two very different business models together.

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