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Low cost airliner, Norwegian wants to notify SAS and Scandinavian governments for uncompetitive practices

Sunday, 02 December 2012
Low cost airliner, Norwegian, and its Low-cost airlines organization, European Low Fare Airline Association, (ELFAA) is considering reporting the Scandinavian governments to the EU Commission's competition authority.

This has to do with the loan of Skr1.75 billion, the governments gave SAS. It is seen as a move to stifle competition because SAS is having an unfair advantage with ready pool of stimulus capital when it cannot compete properly in the market. This is a disadvantage because SAS is not forced to fail if it cannot compete just like the other low coast carriers but is propped up by governments.

According to the Swedish business daily, Dagens Industri, Norwegian, accused the Scandinavian governments of stifling competition and unfair protection of a competitor from failing if it cannot naturally compete in the open market.

According to the newspaper, Norwegian, which has been the closest and strongest competitor of SAS is said to be either going it alone or together the ELFAA to submit an application to the competition authority.
The ELFAA, back on the 16th of Dec., had strongly condemns the move taken by the Scandinavian Governments and shareholders of SAS in which they announced then that they would provide further credit of SKr3.5billion to SAS.

In a press release, the ELFAA wrote that "SAS has been the beneficiary of successive state aid support, in one form or another, at yearly intervals. ELFAA deplored these successive measures to prop up a clearly ailing airline with an outdated business model, formally recording our concern on each occasion to the Competition Directorate of the European Commission."
by Scancomark.com Team

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