IAG has come to the rescue of Norwegian. The holding company that covers Iberia, Vueling and British Airways announced on Thursday that it had acquired 4.61% of the Scandinavian airline and hasn't ruled out launching a full takeover bid.
In the last few weeks investors had begun to have their doubts about the business model at Norwegian, which is reporting an estimated 273-millon-euro loss for the first three months of this year. On top of this the company has high debt as a result of its ambitious expansion plan. Only a few weeks ago it increased its capital by 137 million euros to keep that plan alive. IAG said that Norwegian is an attractive investment and the acquisition of a small holding was designed to open up a possible increase in its stake.