The Battle to Take Over Norwegian Airlines

In public comments, Norwegian Air Shuttle CEO Bjorn Kos confessed that there are several unnamed airline groups looking to take over controlling interest in the ultra-low-fare airline.

Shares of Norwegian Air Shuttle have continued to gain altitude since British Airways parent company International Airlines Group (IAG) confirmed that its recently acquired five percent stake in the low-fare, long haul carrier could be correctly viewed as an opening gambit in a potential takeover bid. Rather than play coy about its intentions, as was the case when the airline group at first denied rumors that it was interested in acquiring Aer Lingus (an airline IAG purchased in 2015), company officials confirmed interest in taking over Norwegian in uncustomarily direct language.

“The minority investment is intended to establish a position from which to initiate discussions with Norwegian, including the possibility of a full offer for Norwegian,” IAG officials said in a statement earlier this month. “IAG confirms that no such discussions have taken place to date, that it has taken no decision to make an offer at this time and that there is no certainty that any such decision will be made.”

Initially, Norwegian Air officials were quick to promise resistance to any potential takeover bid from the multinational airline group. CEO Bjorn Kos, however, appears to have softened that position in recent days, suggesting that the airline would at least consider entertaining outside ownership offers. That doesn’t mean, however, that Kos isn’t still playing just a little bit hard-to-get. This week, he suggested that while IAG has the inside track to any potential purchase of the carrier, Norwegian has no shortage of suitors to choose from.

“So far it is airline groups but I cannot say who they are,” Kos told reporters this week. “They are taking a lot of interest in Norwegian.”

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