Norwegian Ban On Frequent Flyer Miles
In 2002, SAS bought up the rival airline Braathens, giving the company a near monopoly on major domestic routes within Norway. After a few months, the airline Norwegian Air Shuttle started flying major routes in competition. To remove the edge SAS had over the new airline, the Norwegian Competition Authority then banned the award of EuroBonus points in Norway from August 1 that year.
In 2005, Morten A. Meyer, the Modernization Minister asked the competition authority to consider extending the ban on frequent flyer miles to include all of Scandinavia. Norwegian Air Shuttle and Sterling Airlines had also complained about SAS's bonus program in Scandinavia. It was pointed out that the situation on these routes was different from the monopoly which had been present on the Norwegian domestic market.
The authorities indicated in 2007 that the ban against frequent flyer points would continue, arguing that the ban on EuroBonus had reduced the ticket prices by 30% and boosted competition. SAS Norge, the Norwegian affiliate of SAS protested, arguing that the extent of the fare reduction was exaggerated (claiming 18.4% rather than 30%), and were due to more efficient spending, not the ban on EuroBonus.
Following the development of the market, where Norwegian Air Shuttle since it's start in 2002 has grown to be equal in size to SAS on most major domestic routes, the Norwegian Competition Authority begun yet another evaluation of the ban on domestic frequent flyer points in December 2010.
Read more about this topic: Euro Bonus
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