Norwegian receives 'several inquiries' after IAG share purchase

PA

Low-cost airline Norwegian has received further expressions of interest after British Airways owner IAG acquired a 4.6% stake.

Shares in the Oslo-based carrier rose more than 10% after it announced "several inquiries" had been made.

It has created a steering committee to "review the situation, handle relevant inquiries and to safeguard the interests of all shareholders".

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IAG said in a stock market announcement on April 12 that its stake was "intended to establish a position from which to initiate discussions with Norwegian", including the possibility of a full offer for the firm.

Norwegian has expanded rapidly in recent years, ordering dozens of aircraft to serve a raft of new routes.

The firm has shaken up the long-haul market by offering flights at knockdown prices.

Some of its most popular deals have included £99 flights from Edinburgh and Dublin to New York.

Norwegian's losses before interest and taxes deepened by 31% year-on-year in the first three months of the year, reaching 2.2 billion kroner (£199 million).

Revenues increased by a third over the period, to 7 billion kroner (£632 million).