BRA - Braathens Regional Airlines applies for financial reorganisation

BRA - Braathens Regional Airlines announced (19-Oct-2023) it is applying for financial reorganisation for seven of the 13 companies in the group. The company stated it "must now act to ensure long term financial stability". The goal of the process is, in addition to several improvement measures, to restructure debts and renegotiate agreements in order to secure jobs, preserve the aviation infrastructure and availability in Sweden and to create long term sustainable conditions for BRA. During the current recession, the recovery in domestic travel has slowed down, while costs have increased, ranging from airport charges to fuel prices and interest rates. The company is heavily negatively affected by currency effects due to the weak Swedish krona. During the summer, the company has also been affected by delays in aircraft deliveries due to global capacity shortages of aircrafts and spare parts, which has resulted in large one off costs. The company underwent a financial reorganisation during COVID-19, freezing operations and parking all aircraft for 13 months. CEO Ulrika Matsgård said: "Today's situation is completely different from the one that prevailed during the pandemic when travel, more or less, was non-existent. This time, we will continue our business as usual and customers will not be affected". BRA added the owners are willing to inject new capital in connection with a successful reorganisation process and are considering broadening ownership. The target is for the reorganisation to be completed during 1Q2024. The companies that have applied for financial reorganisation are, Braathens Regional Airlines, Braathens Crew AB, Braathens International Airways AB, Braathens Regional Airways AB, BRA Sverige AB, Braathens Support AB and Braathens People AB. [more - original PR] [more - original PR - Swedish]