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Braathens Files for Bankruptcy in Airbus Operations

Braathens Files for Bankruptcy in Airbus Operations Amid Industry Challenges
Braathens International Airways AB has filed for bankruptcy concerning its Airbus operations after failing to secure new financing, marking a significant setback for the Swedish carrier. The decision, taken by the Board of Directors, was submitted to the Stockholm District Court and affects both Braathens International Airways AB and Braathens Crew AB. Effective immediately, all flights operated with Airbus aircraft for tour operators have been cancelled, impacting approximately 200 employees, all of whom are covered by the state wage guarantee.
Strategic Shift and Financial Struggles
This bankruptcy follows a strategic decision announced in August, when Braathens opted to phase out its Airbus fleet and concentrate on its expanding ATR72-600 turboprop operations. Despite efforts to obtain bridge financing to facilitate this transition, the company was unable to secure the necessary liquidity, leaving bankruptcy as the only viable option.
Founded in 2022 to operate Airbus flights for tour operators, Braathens’ Airbus venture quickly encountered significant challenges. Delays in aircraft deliveries, unexpectedly high startup costs, and rising operating expenses placed considerable strain on the business. The wider Braathens group entered reconstruction in 2023, with the Airbus operations identified as a major contributor to its financial difficulties. Cost-cutting measures and declining demand from tour operators failed to restore profitability. Since the onset of the pandemic, owners have invested over SEK 300 million into the Airbus segment without success.
Per G. Braathen, Chairman of the Board and majority owner, expressed deep regret over the decision, stating, “It is with great sadness that the Board has been forced to file for bankruptcy tonight for the Airbus business. The financing we sought to allow a controlled phase-out has not been secured. We now have no other choice but to restructure and focus on the part of the business that can achieve long-term profitability.”
Industry Context and Future Outlook
The bankruptcy highlights broader challenges within the aviation sector, where operational complexities and financial pressures are prompting carriers to reassess their strategies. Braathens’ pivot toward ATR turboprops reflects a growing industry trend, as regional airlines adapt to evolving market conditions. This shift may lead to changes in regional wet-lease and charter services, with competitors likely to adjust their operations accordingly. For instance, Lufthansa recently announced plans to cut 4,000 jobs to improve efficiency, while Spirit Airlines faces similar financial pressures, underscoring the intense competition among low-cost carriers.
Other companies within the Braathens group—including Braathens Regional Airlines AB, Braathens Regional Airways AB, Braathens People AB, and Braathens Support AB—remain unaffected by the bankruptcy and will continue normal operations. The company’s ACMI (Aircraft, Crew, Maintenance, and Insurance) flights for other airlines, operated with ATR72-600 aircraft, will proceed as planned.
Union negotiations and redundancy processes related to the closure of Airbus operations are expected to commence shortly. Management has emphasized that every effort will be made to safeguard viable operations and protect jobs in the long term as the company refocuses on its more sustainable turboprop business.

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