Norwegian carrier Braathens has turned to rival SAS to stave off a crisis in the face of continuing financial problems.
SAS is to acquire the Braathens family's 38.8% share and the 30% held by Dutch airline KLM, subject to regulatory approval.
The move allows Scandinavian flag carrier SAS to complete its domination of the Norwegian market as it already owns Wideroe Flyveselskap, the country's only other significant airline.
Braathens, which operates a 32-strong fleet of Boeing 737s, has accumulated losses of around NKr 2 billion ($220 million) over the past two years in the face of fierce domestic competition.
Braathens approached SAS earlier this year after KLM announced it intended to withdraw. Both Scandinavian operators believe Braathens did not have a future as an independent operator. SAS says it can overcome competition authority problems partly because there is no alternative to a tie-up other than the collapse of the airline. Norway is not a member of the European Union and the airlines hope to avoid investigation by Brussels.
The tie-up, valuing Braathens at around NKr 1.12 billion, does not include ailing Swedish carrier Malmo Aviation which is to be divested. Braathens, which runs regional and international services, is set to continue operating under its own name from its Oslo base.
Source: Flight International
