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NORWEGIAN AIR SHUTTLE

Airline Norwegian’s takeover of Widerøe could be halted

The Norwegian Competition Authority could put a stop to the takeover of regional airline Widerøe by Norwegian as it fears competition could be weakened.

Pictured is a Norwegian Boeing 737.
A takeover of Widerøe by Norwegian could be halted. File photo: A grounded Boeing 737 MAX 8 passenger plane of the Norwegian low-cost airline Norwegian is parked at the tarmac at Vantaa airport in Vantaa near Helsinki, Finland. (Photo by Heikki Saukkomaa / Lehtikuva / AFP)

Norwegian announced this summer that it had agreed to buy Widerøe, which is Scandinavia’s largest regional-only airline.

The 1.1 billion kroner deal could be blocked by the Norwegian Competition Authority, though. The reason is that a lack of competition could weaken the airline market.

This could have negative consequences for travellers. 

“The aviation market is a large and important market for Norwegian consumers. Well-functioning competition is essential for Norwegian air passengers to have the best possible offer at the lowest possible price. It is necessary to carry out further analyses of how Norwegian’s purchase of Widerøe will affect competition in the market,” Gjermund Nese of the Norwegian Competition Authority said in a preliminary assessment of the takeover.

The supervisory authority said that it will make its final decision on the proposed takeover on November 17th.

Norwegian Airline remains positive that the authorities will give the takeover the green light.

“We strongly believe in a positive outcome in the case,” Geir Karlsen, CEO of Norwegian, said in a stock market announcement.

Norwegian argues that SAS is actually a competitor of the Widerøe and not Norwegian. Its explanation is that SAS owns and leases planes which are of a similar size to Widerøe’s smaller aircraft. Meanwhile, Norwegian says that its Boeing 737 are too large and unprofitable to fly to the airports that Widerøe serve.

Norwegian and Widerøe have been collaborating on routes since last year. Widerøe serves more than 40 small and medium-sized airports across Norway.

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BUSINESS

Norway invites proposals for blocks for controversial deep-sea mining

Norwegian authorities on Monday took another step towards the controversial mining of its seabed, by inviting potential actors to nominate blocks that would be of interest in a first licensing round.

Norway invites proposals for blocks for controversial deep-sea mining

Already Western Europe’s largest oil and gas producer, Norway could become the first country to authorise seabed mining, arguing the importance of not relying on China or authoritarian countries for minerals essential for renewable technology.

“This marks the starting point for something that could become a new industry on the Norwegian shelf,” Torgeir Stordal, director of the Norwegian Offshore Directorate, said in a statement.

While deep-sea mining is contentious due to the potential impact on vulnerable marine ecosystems, Norway’s parliament in January formally gave its green light to open up parts of its seabed to exploration.

By allowing the prospecting, Oslo says it wants to fill in gaps in knowledge, stressing that “environmental considerations” will be taken into account in all stages of the process.

In addition, “extraction will only be authorised if the licensee’s extraction plan demonstrates that extraction can take place in a sustainable and responsible manner.”

Several countries, including France and the UK, have called for a moratorium on deep-sea mining, and the European Parliament expressed concern following Norway’s decision to move forward.

“More people have been to space than in the deep sea,” Kaja Lonne Fjaertoft of WWF Norway told a conference in early April, calling it the “last wilderness on the planet.”

“However what we know is that our deep sea is vastly important to us that live here on land,” she added, referring to its role in the production of oxygen and the sequestration of CO2.

In early 2023, the Norwegian Offshore Directorate published a report concluding that “substantial resources are in place on the seabed” including minerals such as copper, zinc and cobalt.

Among other uses, they are crucial for the manufacturing of batteries, wind turbines, computers and mobile phones.

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