Low-fare carrier Norwegian has announced the acquisition of regional carrier Widerøe, for an amount totalling NOK 1,125 million (US$105 million). The price is subject to certain requirements, including the profitability of Widerøe in 2023.
Three years after it filed for bankruptcy, Norwegian – which reinvented itself as a regional carrier – is expanding its reach with the announcement of this acquisition.
The two carriers signed a collaborative LOI (letter of intent) back in 2022, which included an interline agreement with the two airlines sharing ticket sales across their respective route networks. This new announcement means that Widerøe has clearly become even less reliant on SAS, Norwegian’s direct competitor with whom it previously shared an interline agreement.
As part of this new announcement, it was made clear that employees would still remain at their respective airlines and that both companies would still have bases and headquarters in Norway.
When asked about the acquisition, Geir Karlsen, CEO of Norwegian, said: “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.”
A complementary network
Of the 107 routes in Norway, Norwegian and Widerøe do not have significant overlap. 85 are operated by Widerøe, and 22 are operated by Norwegian, with only five overlapping.
Bringing Widerøe into the fold reinforces Norwegian’s attempts to focus on inter-Norwegian connections – indeed, the two complement the other. Whilst Norwegian has the domestic and international reach, offering 300 routes to 114 destinations across the Nordics and Europe, Widerøe, with its 20% market share, can reach small to medium-sized airports across Norway.
Stein Nilsen, CEO of Widerøe, reinforced this: “Although we have a solid footprint in Norway, we are smaller in an international context. 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. We are convinced that this solution is in the best interest of Widerøe, our employees, and not the least our customers.”
