Braathens International Airways AB Files for Bankruptcy Over Airbus Operations
Braathens International Airways AB (Braathens) has filed for bankruptcy, specifically concerning its Airbus operations. This move comes despite the wider Braathens group's efforts to restructure in 2023 and investments totalling over SEK 300 million.
The airline's Airbus operations have struggled to achieve profitability since the COVID-19 pandemic. Despite cost-cutting measures, the venture proved unsustainable. All flights involving Airbus aircraft for tour operators have been cancelled with immediate effect.
Founded in 2022, Braathens International Airways AB was established to operate Airbus flights for tour operators. However, the complexity of the operation was underestimated. The bankruptcy affects around 200 employees, but all are covered by the state wage guarantee. The decision to file for bankruptcy was taken by the company's Board of Directors, including Per G. Braathen, Chairman of the Board and majority owner. The move follows a strategic decision to phase out Airbus aircraft and focus on the ATR72-600 fleet, which could not be supported by secured financing. Delays in aircraft deliveries, higher-than-expected establishment costs, and increased operating expenses placed significant strain on the business.
Braathens International Airways AB's Airbus operations have filed for bankruptcy, impacting around 200 employees. The decision follows a strategic shift towards the ATR72-600 fleet and financial challenges stemming from delays, higher costs, and increased expenses. The affiliated companies Braathens International Airways AB and Braathens Crew AB remain unaffected.
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