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Norway‘s competition watchdog said on Thursday it has approved the planned acquisition by Norwegian Air of domestic rival Wideroe after previously warning it could block the deal.
“We have now concluded that this acquisition will not significantly hinder effective competition in the Norwegian aviation market,” said Tina Soereide, the head of the Norwegian Competition Authority.
The deal, valued at 1.13 billion Norwegian crowns (USD 110 million) was announced in July, but the competition authority was concerned that the acquisition could significantly weaken competition in the market.
The merger will leave only two carriers, Norwegian Air and SAS, to compete for customers in Norway.
However, after collecting and reviewing extensive documentation from the parties and other players in the market, the competition authority found insufficient grounds to stop the acquisition, the regulator said.
Airlines are free to charge air fares as per their operation viabilities subject to compliance to DGCA rules, MoS in the Ministry of Civil Aviation Dr V. K. Singh stated in a written reply to a question in Lok Sabha. But they must also comply with DGCA guidelines in case of cancellations and delays, he said. DGCA, on its part, keeps a check on regulations compliance by scheduled domestic airlines, he shared.
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