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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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Competition body doubtful about Norwegian/Widerøe tie-up

Norway’s competition authority (Konkurransetilsynet) needs more time to analyse the planned acquisition by Norwegian of rival carrier Widerøe (WF, Bodø) as “there may be a danger that competition in the Norwegian aviation market will be weakened” if the deal goes ahead.

Norwegian announced in early July that it wanted to buy Widerøe. It then sent a formal notice on the matter to the authority, which had until September 15 to come up with an initial evaluation.

On that date, the competition regulator duly issued a statement saying it had “collected and analysed detailed information from the companies and other players in the market” and continued to have concerns.

“If competition is reduced in a way that leads to higher prices and worse offers for Norwegian air passengers, the Norwegian Competition Authority has the option to stop the acquisition,” it warned.

Given the considerable distances between the capital Oslo and the rest of the country, “the aviation market is a large and important one for Norwegian consumers,” Gjermund Nese, its director for...