Antitrust authority assesses Norwegian’s Widerøe acquisition

Watchdog gives Norwegian interim refusal to buy Widerøe

Norway’s competition authority (Konkurransetilsynet) has released a provisional assessment that it remains of the opinion that “competition in the aviation market may be significantly weakened” if the planned acquisition by Norwegian (Oslo Gardermoen) of rival carrier Widerøe (WF, Bodø) is allowed to go ahead.

The watchdog had already, in mid-September, said it was concerned that a tie-up could lead to higher prices and fewer departures for passengers. It has now announced that a possible ban may be slapped on the deal. Permitting the merger would leave only two airlines, Norwegian and SAS Scandinavian Airlines (SK, Copenhagen Kastrup), to compete for passengers in Norway, it said.

“The acquisition would lead, among other things, to us going from three to two players on several domestic routes. We see a real risk that competition in the market could be weakened in a way that leads to higher fares and a worse range of routes,” said the regulator’s director, Tina Søreide.

There is a risk, the authority said, of weakened competition on routes...

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