Swedish operator Braathens is filing for bankruptcy for its Airbus-based operation, which the company has been in the process of phasing out.
Braathens had opted in August to concentrate on ATR 72-600 turboprop services, and gradually dismantle the Braathens International Airways division which has been flying Airbuses.
While it had been seeking to secure continuing finance while the Airbus operations were phased out, the company says this effort has “not been successful”.
“All Airbus flight operations will be discontinued immediately,” it states. Around 200 employees are affected.
Lack of liquidity has “forced” it to file for bankruptcy at the Solna district court, it adds. The filing covers Braathens International Airways and the associated Braathens Crew division.
Braathens stresses that its wet-lease ATR operations are not affected by the bankruptcy and will continue.
The company says it has invested over SKr300 million ($32 million) in the Airbus operation – which was established in 2022 and aimed at tour operators – but failed to achieve profitability.
“The establishment process was more complex than expected and delayed aircraft deliveries as well as higher start-up and operating costs resulted in financial challenges,” it says, adding that tour operator demand has declined.
Braathens board says its members “deeply regret the situation” but adds that “there are no alternatives left”.
Majority owner and chairman Per Braathen says the company needs to focus on the Braathens regional turboprop business which, he believes, can “achieve long-term profitability”.
Braathens’ board will implement measures to secure the viable parts of the operation which are still attracting demand, it says. “The goal is to continue to fulfil agreements and, over time, safeguard jobs within the business,” it adds.
