Braathens International Airways has been forced to declare bankruptcy due to the unsuccessful financing of its Airbus operations, while the ATR72-600 fleet will continue to operate as planned.
In a statement released last night, the management announced that it had filed for bankruptcy with the Solna District Court for Braathens International Airways AB and Braathens Crew AB, resulting in the immediate suspension of all Airbus flights. The decision affects about 200 employees, who will be covered by the state wage guarantee.
The company was founded in 2022 to offer charter and scheduled services with Airbus aircraft in cooperation with tour operators. However, the complex establishment process, aircraft delivery delays, and high startup and operating costs created significant financial difficulties. An additional challenge was declining demand from tour operators, which, despite cost-saving measures, made business sustainability impossible. Over the past three years alone, the owners invested more than 300 million Swedish kronor, but profitability in the Airbus segment was never achieved.
At the end of August, the Board of Directors decided to gradually phase out Airbus operations and focus on the ATR72-600, but the planned transition required additional funds that could not be secured. “Unfortunately, the financing we sought to ensure a controlled phase-out was not obtained. We are now left with no choice but to concentrate on the part of the business that has the potential for long-term sustainability,” said Chairman and majority owner Per G. Braathen, adding that he understands the disappointment and shock of the employees.
It is important to emphasize that the bankruptcy affects only the Airbus business. Braathens Regional Airlines AB, Braathens Regional Airways AB, Braathens People AB and Braathens Support AB will continue to operate as normal. This means that Braathens’ ACMI flights with ATR72-600s, used by several European carriers, will continue without interruption.
Union negotiations concerning administrative layoffs will begin shortly, while management announced measures to preserve the parts of the business with demand and long-term prospects. The goal is to continue fulfilling contractual obligations and, as much as possible, protect jobs.
