IAG Buying Norwegian?
 

IAG, the parent company of British Airways, Iberia, Aer Lingus, Vueling, and Level, has purchased a minority share and have announced they are considering making an offer for Norwegian.

https://www.flightglobal.com/news/ar...keover-447639/

British Airways owner International Airlines Group (IAG) has confirmed that it is exploring a potential acquisition of low-cost carrier Norwegian Air Shuttle.
Shares in Norwegian jumped by as much as 26% on news of a possible tie-up before trading was suspended on the Oslo Stock Exchange.
According to reports, IAG wants to boost its market share amid increasing competition from low-cost carriers.

Norwegian declined to comment.

IAG said it had bought a minority stake in the airline with a view to opening talks about a deal.

"The minority investment is intended to establish a position from which to initiate discussions with Norwegian, including the possibility of a full offer for Norwegian," IAG said.
However, it said no discussions have taken place and it has not decided whether to make an offer.

What's next Oneworld alliance?

Leveraged buy out, run it into the ground, sell off the pieces.

Can you give me a past example of when Company A bought Company B and then "ran it into the ground and sold off the pieces"?

Carl Icahn. Ask the long time employees of TWA. I’ll bet they’ll burn up the keyboards responding to your query. True... Carl did not own an airline, but just the same... he purchased an airline, and ran it into the ground.

You may not be old enough to remember Frank Lorenzo, and what he did to Eastern Airlines.

US carriers are subtle as to what they are doing to shave expenses and increase profit margins in the name of code sharing which in fact is outsourcing de facto.

Google Carl Icahn and TWA. Then google Frank Lorenzo and Eastern Airlines!

This happens all the time. It’s Bain Capital’s business plan. Buy with debt loaded on the victim company. Complain that costs are now too high and cut costs. Sell off the pieces for a profit.

I don’t think airlines are in this business, however. And I’m not sure you can cost cut at a ULCC.

Most recently, Toys R Us.

You need a history lesson.......This industry is filled with what you describe above.