To operate separately, but integrate networks more closely
Norwegian sees 200300 mln crowns of synergies
Deal financed from available funds, seen closing by end Q4

OSLO, July 6 Reuters Norwegian Air has agreed to buy domestic peer Wideroe for 1.13 billion crowns 106 million as the reborn airline looks to strengthen its position in its home region.

The deal is the latest reshuffling in the Norwegian airline sector that saw newcomer Flyr file for bankruptcy in January having failed to raise enough cash to survive the winter season.

The two companies, which have been collaborating on routes since last year, will continue to operate independently, but the networks will be more closely integrated in the future, Norwegian Air CEO Geir Karlsen said.

This will make it more attractive for passengers, he told a news conference.

In addition, I believe it can bring economies of scale, he said, adding this could be areas such as purchases, maintenance, IT services or ground handling.

Privatelyheld Wideroe, Scandinavia39;s largest regionalonly airline, serves shorthaul routes in a sparsely populated region with few train lines and challenging geography.

An important part of the regional infrastructure, Wideroe owns 40 Bombardier Dash 8 aircraft, and three Embraer E190E2 jets, with seat numbers in each plane ranging from 39 to 110.

The deal comes only two years after Norwegian Air emerged from bankruptcy protection with a smaller fleet and its debt almost wiped out, having…