Norwegian & Sterling co-operate to take on SAS from Oslo and Stockholm

Image: Norwegian & Sterling co-operate to take on SAS from Oslo and Stockholm

Last week’s announcement that Scandinavia’s two biggest low-cost carriers, Norwegian and Sterling, had agreed to co-operate on certain routes from Oslo and Stockholm comes as no great surprise. Both of them have a common ‘enemy’ in SAS and neither carrier is currently flush with profits. As a result they have revealed that from 15 September they will introduce a code share agreement on flights between Oslo and Copenhagen as well as Stockholm and Copenhagen. Under this agreement both carriers will market, price and sell the routes independently but will co-operate on the production.

 

Weekly departures / weekly one-way capacity

Route SAS Norwegian + FlyNordic Sterling
CPH – ARN 55 / 8156 10 / 1746 12 / 1920
CPH – OSL 77 / 10642 19 / 2976 11 / 1647
Source: OAG Max Online for July 2008

Combining Norwegian/FlyNordic and Sterling flights would give them 31% of total capacity on the Copenhagen to Stockholm route and just over 30% of total capacity on the Copenhagen to Oslo route.

Combined carrier would be a threat to SAS at OSL and ARN

Although a full merger between the two airlines has not yet been mentioned it is informative to see how the two carriers’ capacities at Copenhagen, Oslo and Stockholm compare with that of SAS.

Chart: Capacity at Scandanavian hubs
Source: OAG Max Online for July 2008

A combined Norwegian/Sterling would be just over 40% the size of SAS in Oslo and Stockholm, but at Copenhagen the airline would be just over one-fifth the size of SAS in terms of capacity.


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