The right fit? LCC Norwegian to buy Norway's biggest regional airline Widerøe
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.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.