Norwegian Oil fund is worth 40% (and that was 6 months ago) of the size of whole UK economy.
Norway is allowed take $3 Billion a year from that as cash.
Why the hell did the UK
not set up a sovereign wealth fund back in the 1970s/1980s!
I don't see Norwegian offering anything to IAG as a brand.
As a brand maybe not, but it does offer an opportunity to:
(1) boost its long haul no-frills operations at a LGW base;
(2) boost its short haul no-frills operations and create an LGW-based equivelant of VY;
(3) acquire some LGW slots;
(4) obtain a bigger slice of the TATL pie;
(5) take on U2 on LGW shorthaul.
Quote:
EU state aid rules still apply.
Do EU state aid rules apply in Norway?
As far as I am aware yes, they are not in the EU as such but have to abide by EU rules but have no say regarding laws, free movement etc. There are also in Schenghen.
Sounds like a "vassal state"! It's "government by fax".
The UK is headed in exactly the same direction if the never-ending "transition" period is enacted.
No Tango you kill them off and then put your prices up! You might not remember Laker, peoplExpess, etc.
Laker was brought down by collusion on the part of the LHR-JFK trans-Atlantic airlines (AI, BA, PA and TW). They undercut Laker on some economy fares whilst offering flights ex-LHR, a choice of several daily departures, and the possibility of through ticketing for transfer pax.
That apart, all LGW-based UK carriers failed sooner or later (Brtish United, Caledonian, etc.) because of the lack of premium pax and the lack of a hub/available connections at LGW. VS survived because it shifted accross to LHR in the 1990s.
That was then, times have changed.
Acquiring DY/D8 would give IAG access to both the legacy and no-frills sectors. Clearly the acqisition of VY and the creation of Level shows that IAG has an interest in this sector and at having a bite of the Gatwick no-frills cake.
Wasn't that though British Airways? IAG bought Vueling and didn't shut them down as well as Aer Lingus. I don't think IAG will shut Norwegian down, trim their ops yes and make changes but the Norwegian brand will
stay.
On the other hand, BD
was closed down.
Maybe, maybe not, who knows, but it has to live with it because LHR only has 2 rwys. However, it isn't BA that may buy BY/D8.