Braathens continues its restructuring to ensure long-term profitability

During last week, Braathens implemented measures to create conditions for long-term financial stability. After planned financing initiatives could not be implemented, the Board of Directors filed for bankruptcy for the company's Airbus operations on Monday evening, September 29. At the same time, the company announced that measures within the ATR business would be necessary to safeguard the segments that remain in demand and are viable. As the next step, the company initiated financial reorganization proceedings for both the parent company, Braathens Regional Airlines (BRA) AB, and its operating subsidiary, Braathens Regional Airways AB. The applications for financial reorganization was approved by the Solna District Court on Friday, October 3. The process will not have any operational impact on flights, and production for SAS and Austrian Airlines will continue as usual. 

The goal of the process is to address the transition costs incurred as Braathens shifts to operating solely as an ACMI supplier. At the same time, the process aims to ensure long-term viability by reducing debt, renegotiating agreements with clients and other parties, and reducing operating costs. The management is also reviewing several measures that will streamline ATR operations.  

Owners, customers and financiers have shown support for the process.

Further measures will be presented in the coming weeks to create long-term sustainable conditions for the group.