Norway’s Competition Authority warns against new state crisis support to airlines

Værnes airport - SASPhoto: Gorm Kallestad / NTB

According to the Norwegian Competition Authority, the state should not intervene to save the airlines in the next economic crisis. The authority fears monopoly and rising prices.

SAS, Norwegian, and Widerøe have received more than NOK 6 billion in government support throughout the pandemic.

Norway’s Competition Authority has sent a letter to the government, warning that state aid could negatively affect the establishment of new aviation actors in the Norwegian market, Norwegian Broadcasting (NRK) reports.

“It is crucial that new companies that establish themselves have the opportunity to compete on equal terms with the established companies. That means that the authorities must be careful about providing financial support to the established players,” senior adviser Elisabeth Steckmest at the Norwegian Competition Authority to the channel.

She believes there is a danger of prices increasing if the market moves from competition to monopoly.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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