Norwegian Air has requested the Norwegian Competition Authority (NCA) overturn its proposed ban on the airline’s takeover bid of domestic rival airline, Wideroe.
Norwegian had announced the deal on July 6, 2023, valued at 1.13 billion Norwegian crowns (USD103.90 million). However, NCA announced on November 17, 2023, that it is considering a ban on the takeover.
“Norwegian strongly disagrees with the NCA’s preliminary assessment,” Norwegian said in a filing to the Oslo Stock Exchange. The statement added that it is “disappointed that the majority of documentation provided to the NCA, both written and during meetings, have not been taken into account.”
“We view the acquisition of Wideroe as being beneficial for passengers in the domestic travel market in Norway, especially for those passengers travelling on connecting flights,” said Geir Karlsen, CEO of Norwegian. “Several customers have endorsed the transaction, and we have received strong support from employees at Wideroe and other stakeholders, including elected officials.”
The statement argued that Norwegian and Wideroe’s combined network of over 400 routes of which “only two are in reality overlapping” are therefore are not close competitors. “These routes, which are currently served by three separate airlines, represent below 1% of Norwegian’s annual ticket sales,” continued the statement.
“I am hopeful that we have demonstrated to the NCA that the acquisition of Wideroe will be positive for the competition for air travel in Norway,” said Karlsen. The deadline for the NCA’s final decision is January 3, 2024.