 The Norwegian Competition Authority announced that since the new company would have all domestic scheduled services between primary airports, it was unlikely that the take-over would receive permission from them. However, it was stated that one solution could be that the companies discontinue their frequent flyer programs. On 20 August, the Competition Authority declared that SAS was not allowed to purchase Braathens; the ruling was appealed by SAS and Braathens. Analysts stated that Braathens could be bankrupt by the time the appeal was processed. The Competition Authority stated that their denial of the take-over was that the reduction of capacity would remove the airline's incentive to provide discounted tickets, because they would not have to use them to capture travelers with lower willingness to pay from the competitor, and that they would not need low-paying customers to fill up the vacant seats. Instead, the authority wanted the politicians to reduce the taxes on flights. While Braathens also was opposed to the tax, they felt that removing it then was too late to save the company.
