Traveling Blog: Europe Weekend Review: BA Woos Norwegian + Airbnb Has Paris Troubles

April 14, 2018

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Note From the Editor

"We've watched with interest what Norwegian has done. We're interested to see how the consumer would respond to the Norwegian product," IAG CEO Willie Walsh told Skift all the way back in 2016.

It's clear that the Irishman — while not always happy about Norwegian — has long been an admirer. That admiration has only grown judging by IAG's decision to buy a 4.61 percent stake in Norwegian, with a view to looking at an acquisition. While Norwegian said the interest validated its low-cost model, CEO Bjorn Kjos has said he doesn't want to sell.

It's early days but Walsh doesn't mess around. Since taking the reins at British Airways back in 2005, he has turned it into a global powerhouse, merging it with Spain's Iberia and buying up a number of other airlines. Looking at it that way, buying Norwegian would just be another transaction for a deal-making CEO. The Oslo-based airline, however, is a different beast.

An unusual operating structure at Norwegian as well as its substantial debts complicate things, and then there's the fact that Norwegian CEO Bjorn Kjos owns a chunk of the airline.

One thing is certain: Walsh is going to be keeping an even closer eye on Norwegian over the coming months.

— Patrick Whyte, Europe Editor

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Wow. Not many people will have seen this coming. IAG CEO Willie Walsh hasn't always been complimentary about Norwegian in the past, but clearly senses an opportunity. How will Norwegian respond?

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