Two companies within the Swedish aviation group Braathens have filed for bankruptcy after failing to secure funding for their Airbus operations. The move means that both companies will discontinue all Airbus operations immediately.
On Monday (September 29), the group confirmed that Braathens International Airways and Braathens Crew have filed for bankruptcy at the Solna District Court.
The two companies have a total of approximately 200 employees, all of whom are covered by the Swedish state wage guarantee, Braathens noted.
The guarantee is designed to ensure that all employees receive unpaid wages in the event of employer bankruptcy, corporate reconstruction, or other insolvency proceedings.
In August this year, Braathens' board of directors announced plans to “gradually phase out” its Airbus-linked agreements with tour operators and airlines.
At that time, both the board and management were engaged in efforts to secure financing for continued operations during the phase-out of the Airbus fleet – efforts that were ultimately unsuccessful.
“The board of directors and management deeply regret the situation, but given the acute financial situation, there are no alternatives left,” said Per Braathen, chairman of the board and majority owner of Braathens.
“Unfortunately, the funding that we have tried to get in place for a controlled phase-out has not been achieved and I understand that those affected are sad, shocked and disappointed.”
Since the pandemic, Braathens has invested over SEK 300 million ($31 million) in its Airbus business without achieving profitability, the company disclosed in an official statement.
Going forward, Braathen said the group will focus on the part of the business that can achieve “long-term profitability”, namely its ATR72-600 operations for other airlines on ACMI terms.
Braathens International Airways AB was established in 2022 to offer Airbus flights to tour operators.
The group said the establishment process was “more complex than expected”, and that delayed aircraft deliveries and higher startup and operating costs resulted in financial challenges.
In 2023, the Braathens group of companies underwent a reorganisation, driven mainly by its struggling Airbus arm.
Since then, demand from tour operators has continued to decline, the company said, and despite attempts to implement cost-saving measures, these have not been enough to ensure continued operations.