Proposed acquisition of Norwegian Air Shuttle by Ryanair

• Autor(a) principal: Pletenytska, Olha
• Data de Publicação: 2017
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/25326
• topic: Domínio/Área Científica::Ciências Sociais::Economia e Gestão

The European airline industry can be characterized by being a very competitive, in the consolidation phase, with many Asian and Middle East competitors entering into this market. Therefore, there exist several moves airline companies are expected to make in the next couple of years. It is expected some activity from full-service carriers as in a attempt to enter into low-cost business segment, or low-cost carriers to expand into longhaul flight segment due to pressures on costs and profitability, and others. In this context, the current dissertation focuses on the potential deal between Ryanair and Norwegian Air Shuttle. This deal puts forward the entrance of the largest low-cost carrier into the longhaul segment, and an opportunity to expand to other regions as US. Given the conditions of two airlines, the synergies of 1637 million euros were forecasted and thus, it is proposed to Ryanair to pay a premium of 23,36% over the current share price to Norwegian Air Shuttle shareholders. This translates into the price per share of NOK 300 and the total transaction value of NOK 10 727,9 million, all paid in cash.