Budget carrier Norwegian to acquire Scandinavian tour operating business

Scandinavian tour operator Nordic Leisure Travel Group (NLTG) is to be taken over by budget airline Norwegian in a SEK7.94 billion (£630 million) deal.

 

The transaction brings together brands such as Ving, Spies, Tjäreborg, Globetrotter and Sunclass Airlines with Norwegian and sister regional carrier Wideroe.

 

The acquisition combines NLTG’s packaged travel and hotels with Norwegian and Wideroe’s existing network with 27 million passengers.

 

It will create a leading Nordic provider of leisure and business travel, according to Norwegian.

 

The combination of the companies creates an integrated Nordic travel group including almost 160 aircraft as well as tour and hotel operations, serving 30 million customers a year.

 

The acquisition includes NLTG’s profitable hotels in Spain, Greece, Cyprus, Thailand and Turkey.

 

The transaction is expected to increase annual group operating revenue by close to 50%, according to Norwegian.

 

Sunclass Airlines, NLTG’s subsidiary carrier, operates a fleet of 12 medium and long-haul Airbus aircraft.

 

Norwegian’s close to 390 routes are concentrated on scheduled traffic to key destinations in the Nordics, Europe and adjacent countries, while Sunclass operates to 25 leisure destinations with little overlap.

 

NLTG also operates its own travel retail platform, Airshoppen, which will be strengthened in the enlarged group.

 

Norwegian chief executive Geir Karlsen said: "This is a milestone in Nordic travel history. Norwegian and Wideroe will still be dedicated to offering competitive air travel for our customers.

 

“By adding NLTG’s leading position in leisure travel to the Norwegian Group’s comprehensive route network, we are building a better and more flexible customer offering.

 

“We see a significant opportunity to grow hotel and holiday sales across our existing customer base, turning every flight into a potential gateway to a full holiday experience and unlocking meaningful additional revenue per passenger.

 

“In addition, we create a stronger platform for growth across the Nordics, in particular in Sweden and Denmark and through multiple travel concepts we can drive load and booking visibility earlier in the booking windows.

 

“This transaction will secure Nordic ownership of NLTG and deliver a more comprehensive product for all current and new customers of Norwegian, Wideroe and NLTG.”

 

Magnus Wikner, chief executive of NLTG, said: “This is a fantastic milestone in our 70-year history, and the start of a new era for NLTG.

 

“With Norwegian as our owner, we gain access to one of Europe’s most extensive flight networks.

 

“It gives us a completely new platform to broaden our customer offering and reach more customers, not least when it comes to a broader portfolio of hotels, tailored to the Nordic customer.”

 

Norwegian chair Dag Mejdell added: "We are confident that this transaction will create substantial, long-term value.

 

“The acquisition is a strategic step that prepares our business for the future.

 

“The transaction is backed by a unanimous board, reflecting our clear ambition to build the leading integrated travel group in the Nordics, being the best choice for both business and leisure travellers.”