Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
No To SAS Acquisition Of Braathens - Update  
User currently offlineTR From UK - England, joined May 2001, 964 posts, RR: 0
Posted (14 years 9 months 1 week 3 days 10 hours ago) and read 1713 times:

SAS has today issued the following statement in relation to the Braathens acquisition:

The Norwegian Competition Authority has today issued its preliminary evaluation of SAS's potential acquisition of Braathens. This states that the Authority will take action against the acquisition, that is, it opposes its implementation. The Competition Authority bases its evaluation mainly on the fact that it has not been proved to a sufficient degree that Braathens is a bankrupt company.

Braathens, in turn, had approached SAS because the company believed it was in a difficult financial situation, which it would not be able to survive. Braathens regarded the only solution to be SAS's intervention as an owner - in order to save jobs, the Norwegian civil aviation sector and the offering to Norwegian customers. When SAS entered into an agreement with
the majority owners in Braathens, it was on this basis, as well as the opportunity to adapt the Norwegian air travel structure to what is common in Europe.

Braathens' financial situation has been the main feature of the argument that has been made in relation to the Competition Authority. There have been attempts to make it clear that if SAS is not given the possibility to
become an owner in the company, Braathens will not survive and jobs will be lost.

We note that the Competition Authority, in its preliminary decision, does not share Braathens' interpretation of its situation.

SAS respects the fact that the Competition Authority has as its task to safeguard future competition in the Norwegian air travel sector. However, the situation is now such that the Competition Authority believes that
Braathens can survive without SAS. This is in contrast to the basis for Braathens' approach to SAS.

If the Competition Authority's evaluation of Braathens' situation is correct, the basis for the implementation of the agreement between SAS and Braathens' owners is essentially nonexistent.

Initially, it must be made clear which interpretation of Braathens' financial situation is correct. This will be the foundation for future discussions between the parties. If there is uncertainty in the findings of the Competition Authority in this issue, it is natural that a new body
should decide the matter. In such a situation, SAS intends to appeal the final decision by the Competition Authority.

The intervention by the Norwegian Competition Authority will restrict and regulate the market - a regression, unique in Europe, to the time before
free competition was introduced in the aviation industry. Accordingly, SAS wishes to do everything possible to avoid such unreasonable regulatory

1 replies: All unread, jump to last
User currently offlineThe777Man From United States of America, joined Jul 1999, 6831 posts, RR: 54
Reply 1, posted (14 years 9 months 1 week 3 days 6 hours ago) and read 1697 times:

This is great news that Braathens may survive after all as an independant airline. But I have a feeling that we will hear more about this. The777Man

Need a Boeing 777 Firing Order....Further to fly....LX and LH 777s
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
No To SAS Acquisition Of Braathens posted Mon Aug 20 2001 13:04:18 by TR
SAS Acquisition Of Braathens Approved posted Tue Oct 23 2001 12:18:10 by SVG
Talks On SAS Acquisition Of Braathen To End Friday posted Tue Nov 20 2001 14:50:32 by TR
GE Capital To Pull Out Of AC If NO Deal posted Thu May 20 2004 23:52:52 by Cayman
Why No Taxiway To The End Of Some Runways... posted Thu Feb 19 2004 00:40:06 by Maiznblu_757
SIA To Study Viability Of A Thai No-Frills Airline posted Wed Jan 22 2003 00:23:11 by Singapore_Air
SAS-How To Keep Track Of Their A/c (reg. Changes)? posted Tue Aug 13 2002 18:31:42 by Godbless
SAS Take Over Of Braathens Approved posted Tue Oct 23 2001 12:17:22 by TR
To The Victims Of The SAS Crash In Italy posted Mon Oct 8 2001 12:50:48 by Lauda 777
SAS To Appeal Size Of Fine - Maersk Air Accepts posted Wed Jul 18 2001 14:04:02 by TR