BA invests in Norwegian

[drron]

This is huge news, and seemed to come out of left field. IAG has acquired a 4.61% ownership stake in Norwegian, and is considering the possibility of a full takeover of the airline. IAG is the parent company of British Airways, Iberia, Aer Lingus, and LEVEL, and Norwegian has been one of their biggest competitors for the past few years.
British Airways Buys Stake In Norwegian, Considers Full Takeover - One Mile at a Time

 

[dajop]

If they did, that would restore the balance a bit, back to the big three (IAG, LH, KL/AF). Then just need to somehow get Easyjet and Ryanair out the way and all we be sweet for airline owners in Europe.

 

[moa999]

Wow.
Well they already have Vueling and Level.

(And did have Go, one of the first airline owned LCCs that they sold to PE firm 3i in 2001 who onsold it to Easyjet. Suspect world would be very different if they'd kept that)

 

[docjames]

A great move by BA who seem to be slowly turning mainline BA/IB into LCCs. Perhaps this will give them a "brand" to conglomerate with Vueling and Level, allowing them to improve the BA/IB offerings. Because as it stands with current BA offering, there isn't much point in flying BA unless price is equivalent to a LCC.

Or perhaps they'll sadly just continue to turn BA into Norwegian.

 

[dajop]

A great move by BA who seem to be slowly turning mainline BA/IB into LCCs..

Only 15 mins ago was reading that BA have launched “hand luggage only “ fares for the first time on long haul flights .... British Airways launches 'basic' Singapore-London fare; one-way ticket from S$428

 

[drron]

You really don't have to worry with hand carry weights either.
1 Handbag/laptop bag

40cm x 30cm x 15cm/16in x 12in x 6in

23kg/51lb maximum per bag

1 Additional cabin bag*

56cm x 45cm x 25cm/22in x 18in x 10in

23kg/51lb maximum per bag

 

[dajop]

Oh! Bizarre. I guess self loading freight with self loading baggage saves a bit in baggage handling.

 

[SeatBackForward]

Hmm, I just flew out of LHR to Norway, and to my destination BA had recently stopped their flights and had to go through SK. Previous Times I have done it with BA and having the OW* status made that journey a lot better!

 

[docjames]

The next TR from @TonyHancock will be interesting as BA morph into Norwegian.

 

[Strategic Aviation]

British Airways May Try to Kill Low Cost Transatlantic Flights - View from the Wing

But what if a legacy carrier could – as Grover Norquist once said — “drag it into the bathroom and drown it in the bathtub?”

British Airways parent IAG has acquired a 4.61% stake in Norwegian and plans to initiate acquisition discussions.

Of course IAG says they view Norwegian as ‘an attractive investment’. At this point almost no one views Norwegian as an attractive investment.

The question is whether killing Norwegian kills the model. Is there more money that would come in behind Norwegian to scale up a replacement? Or are Norwegian’s losses enough to put the idea to bed, assuming that Wow Air and Primera aren’t going to grow the way Norwegian has — or sustain — and remain a niche part of the market?

 

[pauly7]

Another potential addition to oneworld always welcomed!

 

[Strategic Aviation]

There is more chance of BA leaving oneworld than there is of Norwegian joining it.

 

[moa999]

There is a growing list of potential oneworld LCC affiliates

But it's not in the nature of an LCC to spend any $s to integrate ststems, that after all is the point

 

[Isochronous]

Killing off LCCs is always to be welcomed!

 

[RooFlyer]

I'd find it hard to believe that the European competition regulators would allow IAS to take over Norwegian - talk about anti-competitive!

 

[Standby]

The best outcome for BA in this would give IAG a lot of slots at constrained UK airports &allow BA to put the right airline /Cost carrier on the right route in their mind. This allows Norwegian to take more BA leisure routes whilst removing competition off Longhaul routes they see as core to BA & its profitability.Also allows Willy the luxury of something to hold over BA Crew/costs as per QF/JQ.The risk appears the debt Norwegian has & the current Norwegian owner doesn't seem keen to sell. Interesting to see how this plays out.

 

[TonyHancock]

This could lead to the death of the ex OSL cheap fares to Australia...

 

[Standby]

This could lead to the death of the ex OSL cheap fares to Australia...

I'm sure SQ wouldn't be displeased either, there's a reason Scoot isn't flying to any LHR airport,SQ don't want to cannibalize their own key market.Either way this BA move will take time.

 

[wandering_fred]

I would venture that Scoot isn't flying to any UK airport is because of the departure tax.

Just wandering
Fred

 

[Strategic Aviation]

IAG and Norwegian Air begin to tango - CAPA Centre for Aviation