Reference is made to the stock exchange announcement on 17 November 2023, in which the Norwegian Competition Authority (NCA) announced that it is considering intervening in Norwegian’s acquisition of Widerøe. Norwegian strongly disagrees with the NCA’s preliminary assessment and has today delivered a comprehensive response. Norwegian is also 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 Widerøe as being beneficial for passengers in the domestic travel market in Norway, especially for those passengers travelling on connecting flights. This is a segment currently dominated by our largest competitor, which might explain why the airline in question has voiced its opposition to the transaction. Several customers have endorsed the transaction, and we have received strong support from employees at Widerøe and other stakeholders, including elected officials,” says Geir Karlsen, CEO of Norwegian.
Norwegian has in its response to the NCA highlighted its complementarity with Widerøe and that the two airlines are not close competitors. Of a combined network of over 400 routes, only two are in reality overlapping. These routes, which are currently served by three separate airlines, represent below one percent of Norwegian’s annual ticket sales. In a consultation statement provided in 2021, the NCA stated that based on empirical data, two competing airlines are enough to ensure sufficient competition on a specific route. In its preliminary statement regarding the acquisition of Widerøe, NCA has moved away from these statements. A third-party assessment by Charles River Associates, a global consultancy with expertise within competition economics and merger cases from the airline industry, shows that Widerøe’s presence on overlapping routes has close to no impact on Norwegian’s fares on those routes, in stark contrast to the NCA’s own assessment.
“Given the extensive dialogue and documentation we have provided, including today’s comprehensive response, I am hopeful that we have demonstrated to the NCA that the acquisition of Widerøe will be positive for the competition for air travel in Norway,” concludes Karlsen.
The deadline for the Competition Authority's final conclusion is 3 January 2024.
For further information, please contact:
Jesper M. Hatletveit, Investor Relations, Norwegian Air Shuttle ASA Tel: +47 906 64 401
Fornebu, 8 December 2023
Norwegian Air Shuttle ASA
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.