IAG and Norwegian: it's not yes, but it's not no either

If IAG has recently declared that it does not want to make an offer to buy Norwegian, however, the door does not seem to be closed for the time being.

Norwegian is not at its best and IAG’s announcement not to follow up on the takeover of the airline and to sell its existing shareholding has dampened a lot of hopes on the Norwegian side. But all is not lost: in a rather convoluted press release, IAG confirmed its position, affirming that the chance of such an operation being carried out one day was improbable, but that on the other hand they firmly believed in long-haul low-cost flights and that one should never say never.

IAG to Norwegian: no, but never say never

So that’s a no but you never know. Is there anything to understand behind IAG’s position? In our opinion, yes.

We saw thatthe situation of IAG could be very complicated in case of a no-deal Brexit. Other airlines have taken precautions, such as Air France-KLM, which in such an eventuality has the option of backing out of its investment in Virgin Atlantic. As beautiful as the Norwegian bride may be, it is difficult to see IAG taking control of an airline which, because it is under its control, is forbidden to fly between two European countries at the end of the month

A decision guided by fear of Brexit?

So even if governments are working hard to come up with even a provisional modus operandi before the fateful date, nothing is yet official as the clock is ticking and, from our point of view. Frankly, IAG has other things to worry about than Norwegian in this context.

The IAG group has expressed its deepest concern about the unpreparedness for the Brexit and its possible economic consequences.

But once things are clarified and the shock, whatever its magnitude, is absorbed, we have no doubt that the rumor will resurface.

Photo : Norwegian by Nieuwland Photography via Shutterstock