British Airways-owner IAG says considering generating offer for Norwegian

A Boeing Co. 747 passenger aircraft, operated by British Airways, a unit of International Consolidated Airlines Group SA (IAG), takes off over a row of passenger aircraft operated by British Airways at Heathrow airport in London, U.K.

Chris Ratcliffe | Bloomberg | Getty Images

A Boeing Co. 747 passenger aircraft, operated by British Airways, a unit of International Consolidated Airlines Group SA (IAG), takes off over a row of passenger aircraft operated by British Airways at Heathrow airport in London, U.K.

“IAG confirms of which no such discussions have taken place to date, of which the idea has taken no decision to make an offer at This particular time in addition to of which there can be no certainty of which any such decision will be made,” IAG said in its statement.

Norwegian’s shares, temporarily halted after the IAG news, leaped 39 percent to 250 crowns when they resumed trading, valuing the company at 9.5 billion Norwegian crowns ($1.22 billion).

IAG, formed in 2011 by the merger of traditional flag-carriers British Airways in addition to Iberia, has under CEO Willie Walsh recently embraced budget flying, buying Spanish budget airline Vueling in 2015 in addition to setting up its own long-haul low-cost carrier last year.

Norwegian meanwhile has been the trailblazer of low-cost long-haul flying in Europe, undercutting rivals on trans-Atlantic ticket prices, however expanding at a rate which has left the idea under pressure to control costs in addition to shore up its balance sheet.

Last month the idea raised $168 million in a share sale after warning of a larger than expected first-quarter loss.

Norwegian said in its statement on Thursday of which the idea had no prior knowledge of IAG’s actions, however welcomed the investment.

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