Finnair sells FlyNordic to Norwegian Air Shuttle
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Finnair sells FlyNordic to Norwegian Air Shuttle
Norwegian Air Shuttle to acquire 100% of FlyNordic
Norwegian Air Shuttle today announces that they will acquire 100% of Finnair’s Swedish subsidiary FlyNordic.
- Norwegian has since the start in 2002 become Scandinavia’s largest low fares airline. This acquisition will strengthen our position in the Nordic region as well as in the European market. Stockholm will as a consequence be our new base for our operations from Sweden,” says Norwegian Air Shuttle CEO Bjorn Kjos.
Norwegian Air Shuttle carried 5.1 million passengers in 2006 while FlyNordic carried 1.2 million.
- Since 2003 we have been building a strong brand for the Scandinavian market. As a challenger, FlyNordic has been gaining a significant momentum as Arlanda’s second largest airline. From Finnair’s point of view”, “From Finnair’s view point, FlyNordic has fulfilled the strategic goals originally set to it. We now want to proceed to the next phase. Through this co-operation we will further strengthen our position in the traffic between Scandinavia and Asia,” explains Finnair President and CEO Jukka Hienonen.
Finnair and Norwegian Air Shuttle have signed a memorandum of understanding regarding the sale of Finnair’s subsidiary FlyNordic to Norwegian Air Shuttle within the second quarter of this year. The transaction is subject to regulatory clearance.
As consideration Finnair will receive ordinary shares and stock options in Norwegian Air Shuttle. As a consequence of the agreed transaction structure Finnair’s ownership in Norwegian Air Shuttle will initially exceed 5%. If Finnair decides to exercise all stock options, Finnair’s share in Norwegian Air shuttle may increase to approximately 10% (based on current number of shares). The stock options can be exercised until the end of 2008 at an average strike price of NOK 115.
Finnair and Norwegian Air Shuttle have also agreed to start a strong co-operation. Norwegian Air Shuttle’s Scandinavian network will be linked to Finnair’s increasing Asian connections. This will, for instance, support the demand in Asia for travel to Scandinavia and central Europe.
“The co-operation brings benefits to both parties. Norwegian Air Shuttle will open their network to our Asian flights meaning that we do not have to fly to every destination in the North ourselves. At the same time, our network will bring passengers from Asia to Norwegians network in Scandinavia,” Finnair President and CEO Jukka Hienonen states.
- FlyNordic will remain as a brand and we will strengthen and develop its position in Sweden. We will continue to have focus on low fares for both the business and the leisure market. In addition we will further develop our IT solutions with focus on the website, direct to gate and automated check-in and will also continue to focus on high efficiency in our operation,” says CEO Bjorn Kjos.
Finnair acquired FlyNordic in 2003. Since then the airline has been flying from Stockholm Arlanda to Copenhagen, Oslo and to various destinations in Sweden. The network has been expanded to Europe through the airline’s own routes and through co-operation. FlyNordic and Norwegian Air Shuttle have been operating between Stockholm and Oslo in co-operation since 2004. FlyNordic’s profitability has been improved since last summer by adding charter traffic and this will continue in co-operation also after the ownership restructuring. In the last half of 2006 FlyNordic’s result was positive.
Norwegian Air Shuttle today announces that they will acquire 100% of Finnair’s Swedish subsidiary FlyNordic.
- Norwegian has since the start in 2002 become Scandinavia’s largest low fares airline. This acquisition will strengthen our position in the Nordic region as well as in the European market. Stockholm will as a consequence be our new base for our operations from Sweden,” says Norwegian Air Shuttle CEO Bjorn Kjos.
Norwegian Air Shuttle carried 5.1 million passengers in 2006 while FlyNordic carried 1.2 million.
- Since 2003 we have been building a strong brand for the Scandinavian market. As a challenger, FlyNordic has been gaining a significant momentum as Arlanda’s second largest airline. From Finnair’s point of view”, “From Finnair’s view point, FlyNordic has fulfilled the strategic goals originally set to it. We now want to proceed to the next phase. Through this co-operation we will further strengthen our position in the traffic between Scandinavia and Asia,” explains Finnair President and CEO Jukka Hienonen.
Finnair and Norwegian Air Shuttle have signed a memorandum of understanding regarding the sale of Finnair’s subsidiary FlyNordic to Norwegian Air Shuttle within the second quarter of this year. The transaction is subject to regulatory clearance.
As consideration Finnair will receive ordinary shares and stock options in Norwegian Air Shuttle. As a consequence of the agreed transaction structure Finnair’s ownership in Norwegian Air Shuttle will initially exceed 5%. If Finnair decides to exercise all stock options, Finnair’s share in Norwegian Air shuttle may increase to approximately 10% (based on current number of shares). The stock options can be exercised until the end of 2008 at an average strike price of NOK 115.
Finnair and Norwegian Air Shuttle have also agreed to start a strong co-operation. Norwegian Air Shuttle’s Scandinavian network will be linked to Finnair’s increasing Asian connections. This will, for instance, support the demand in Asia for travel to Scandinavia and central Europe.
“The co-operation brings benefits to both parties. Norwegian Air Shuttle will open their network to our Asian flights meaning that we do not have to fly to every destination in the North ourselves. At the same time, our network will bring passengers from Asia to Norwegians network in Scandinavia,” Finnair President and CEO Jukka Hienonen states.
- FlyNordic will remain as a brand and we will strengthen and develop its position in Sweden. We will continue to have focus on low fares for both the business and the leisure market. In addition we will further develop our IT solutions with focus on the website, direct to gate and automated check-in and will also continue to focus on high efficiency in our operation,” says CEO Bjorn Kjos.
Finnair acquired FlyNordic in 2003. Since then the airline has been flying from Stockholm Arlanda to Copenhagen, Oslo and to various destinations in Sweden. The network has been expanded to Europe through the airline’s own routes and through co-operation. FlyNordic and Norwegian Air Shuttle have been operating between Stockholm and Oslo in co-operation since 2004. FlyNordic’s profitability has been improved since last summer by adding charter traffic and this will continue in co-operation also after the ownership restructuring. In the last half of 2006 FlyNordic’s result was positive.
