Monitoring of the Norwegian aviation market expanded

The Norwegian Competition Authority continues its monitoring of competition in the Norwegian aviation market. In addition, it is expanding its monitoring to include the operations of Wizz Air.

This is in line with the wishes of the Minister of Trade and Industry, Iselin Nybø, and the Minister of Transport, Knut Arild Hareide. They have asked the Competition Authority to pay particular attention to competition in domestic aviation in the special and demanding situation caused by Covid-19. The Authority is therefore expanding its existing monitoring of this market.

– For several years, the Norwegian Competition Authority has closely monitored the aviation market. Among other things, SAS and Norwegian have been obliged to submit their route accounts on several of the largest domestic routes in Norway to the Authority. In order to ensure that the Authority can continue to follow the market closely in the time ahead, the Competition Authority has decided to extend its market surveillance to also cover the operations of Wizz Air, says Director General Lars Sørgard.

Since 2013, SAS and Norwegian have been subject to special reporting obligations requiring the two airlines to provide certain information to the Competition Authority. This has included data on the companies’ revenues and expenses per route, data on frequent flyer programmes, and data concerning their large customers since 2011 for 12 of the largest domestic routes in Norway.

– Based on the data obtained, the Competition Authority has carried out analyses of the general development of and the competitive situation in the Norwegian aviation market. Among other things, the Authority has looked at the development of the airlines’ prices and changes made in their flight schedules. These analyses show that the airline companies competed in a manner that was favourable to air passengers until the pandemic occurred, says Senior Adviser Line Halvorsen Hamre.

The Authority’s market surveillance will continue on the same routes that have been subject to monitoring in the past, but will be expanded to include the operations of Wizz Air, as Wizz Air has started operations on several of the routes in question. The initial duration is 2 years, but the monitoring period can be extended if considered necessary. The Authority may also adjust its monitoring if, for example, new players enter the Norwegian aviation market.