Braathens International Airways AB (Braathens) has been forced to file for bankruptcy in relation to its Airbus operations after efforts to secure fresh financing failed. The decision, taken by the company’s Board of Directors, was filed at the Stockholm District Court and affects both Braathens International Airways AB and Braathens Crew AB. All flights with Airbus aircraft for tour operators have been cancelled with immediate effect. Around 200 employees are impacted, though all are covered by the state wage guarantee.
The announcement follows a strategic decision made at the end of August to phase out Airbus aircraft and instead concentrate on the growing ATR72-600 fleet. While management attempted to secure financing to support operations during this transition, those initiatives were unsuccessful. Without the necessary liquidity, the Board concluded that bankruptcy was the only remaining option.
Braathens International Airways AB was founded in 2022 to operate Airbus flights for tour operators. However, the venture proved far more complex than anticipated. Delays in aircraft deliveries, higher than expected establishment costs, and increased operating expenses placed heavy strain on the business. In 2023, the wider Braathens group entered reconstruction, with Airbus operations a major factor in its financial difficulties. Despite cost-cutting measures, declining demand from tour operators deepened the challenges, leaving the business unable to achieve profitability. Since the pandemic, the owners have invested more than SEK 300 million (US$32 million) into the Airbus operations without success.
“It is with great sadness that the Board has been forced to file for bankruptcy tonight for the Airbus business,” said Per G. Braathen, Chairman of the Board and majority owner. “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.”
Other companies in the group, including Braathens Regional Airlines AB, Braathens Regional Airways AB, Braathens People AB and Braathens Support AB, are not part of the bankruptcy proceedings. These entities will continue to operate as normal. Braathens’ ACMI flights for other airlines, operated with ATR72-600 aircraft, will proceed as planned. The company has confirmed that union negotiations and redundancy processes linked to the closure of Airbus operations will begin shortly. Management stressed that every effort will be made to safeguard viable operations and protect jobs in the longer term.
