Norwegian has entered into an agreement with WF Holding AS to acquire Widerøe for a cash consideration of NOK 1,125 million. The purchase price is subject to certain adjustments after closing, including in respect to the profitability of Widerøe in 2023.
This acquisition will provide customers with a broader route network and more choices as Widerøe covers more than 40 small and medium-sized airports across Norway, in addition to a few larger airports in Europe, while Norwegian offers more than 300 routes to 114 destinations in the Nordics and in Europe.
The acquisition will also contribute to securing local jobs in Norway.
“This is a milestone in Norwegian aviation history. Our two airlines have existed side by side for many years and no one knows the aviation market in Norway better. With this transaction, we will now create a streamlined and more comprehensive offer for all customers, and we look forward to offering seamless travel across our entire route networks,” said Geir Karlsen, Chief Executive, Norwegian.
The two airlines have a very limited overlap on routes and complement each other well. Out of a total of 107 routes in Norway, out of which 85 are operated by Widerøe and 22 are operated by Norwegian, only five overlap and can all be operated with standard jet aircraft.
“The tax level for air travel in Norway is particularly high, and this, in combination with fierce international competition, makes it difficult for a smaller regional airline to persevere without a strong partner. We are therefore very happy to now join forces with Norwegian, and we are excited to get an industrial owner that aspires to develop both companies further,” added Stein Nilsen, Chief Executive, Widerøe.
Widerøe will continue to exist as a separate company with its own brand, organisation and headquarters in Bodø. Both companies will continue to have bases and headquarters in Norway as today. Employees will remain in their existing companies under existing collective agreements. Widerøe will uphold its existing agreements with other airlines.