IAG Group Gets Stake of Norwegian Air Shuttle, Prepares Buyout Offer

  • IAG Group Gets Stake of Norwegian Air Shuttle, Prepares Buyout Offer

IAG Group Gets Stake of Norwegian Air Shuttle, Prepares Buyout Offer

International Airlines Group (IAG) acquired a 4.61% stake in LCC Norwegian, a move that could see it take full control later.

It said "no such discussions have taken place to date" and that "no decision" had been taken to make an offer, adding that "there is no certainty that any such decision will be made".

In a statement, the company said it intends to use the minority stake to launch discussions of a potential takeover.

"The minority investment is meant to establish a position from which to initiate discussions with Norwegian, including the possibility of a full offer for Norwegian", the British Airways parent pointed out, cautioning that no such discussions had taken place to date and that it had taken no decision to make an offer at this time.

Deals have included £99 flights from Edinburgh and Dublin to NY.

Norwegian's offered fares as low as €69 to TF Green in Rhode Island and Stewart International Airport in CT, luring customers from the likes of Aer Lingus and British Airways.

IAG shares fell 1% on the announcement. In the long haul low-priced segment, both NAS and LEVEL started recently and the combination of both carriers and its short-haul counterparts could generate an interesting offering of connections for intercontinental travelers.

Norwegian has experience trouble in 2018 and recently announced it would discontinue flights from Cork during the winter.

Last year IAG had revenues of of €22.9bn (£20.1bn) and pre-tax profits of €2.4bn, generated from the 105m passengers it carried.

Bjorn Kjos, the CEO and founder of Norwegian, said earlier this month that "everybody in Europe" have wanted to acquire his airline.