Norwegian receives ‘several inquiries’ after IAG share purchase
The airline has created a steering committee to ‘review the situation, handle relevant inquiries and to safeguard the interests of all shareholders’.
Low-cost airline Norwegian has received further expressions of interest after British Airways owner IAG acquired a 4.6% stake.
Shares in the Oslo-based carrier rose more than 10% after it announced “several inquiries” had been made.
It has created a steering committee to “review the situation, handle relevant inquiries and to safeguard the interests of all shareholders”.
Want to know how we performed in Q1 2018? It was characterised by international expansion and strong passenger growth. We also flew 7.5 million passengers and will continue to provide economies of scale and lower costs. #FlyNorwegian Read more here: https://t.co/f4XBfnDokV pic.twitter.com/XhULZFH9tc— Norwegian (@Fly_Norwegian) April 26, 2018
IAG said in a stock market announcement on April 12 that its stake was “intended to establish a position from which to initiate discussions with Norwegian”, including the possibility of a full offer for the firm.
Norwegian has expanded rapidly in recent years, ordering dozens of aircraft to serve a raft of new routes.
The firm has shaken up the long-haul market by offering flights at knockdown prices.
Some of its most popular deals have included £99 flights from Edinburgh and Dublin to New York.
Norwegian’s losses before interest and taxes deepened by 31% year-on-year in the first three months of the year, reaching 2.2 billion kroner (£199 million).
Revenues increased by a third over the period, to 7 billion kroner (£632 million).