Due to the effects of COVID-19, BRA is now applying for restructuring to protect the airline from bankruptcy.
The regional carrier based in Stockholm-Bromma has announced it will suspend all operations from April 6 until May 31.
This decision to file for reorganization is intended to protect the airline from true bankruptcy.
Weeks ago on March 19, BRA announced it would reduce its operations to a minimum and send its personnel into short-term work.
BRA’s CEO Geir Stormorken says:
After careful consideration, the company’s board of directors chooses to apply for reconstruction and freeze the business completely. This will give us leeway to develop a long-term sustainable business plan. I deeply regret how this affects employees and customers.
During this time, BRA will only employ 20 out of its 600 employees. These 20 employees, along with the liquidator Nils Åberg, will determine when conditions are best for a restart.
Affected passengers will be compensated, says BRA’s commercial manager, Ulrika Matsgård:
The fact that we ended up in this situation and are forced to pause to reconstruct the company is beyond our control and we really regret the strife it caused our customers. We will do our utmost to compensate customers for that when we re-open the business.
Braathens Regional Airways operates to numerous destinations throughout Sweden, in addition to other destinations such as Lyon, Berlin, Riga, Tallinn, and more.
BRA has a fleet of 4 ATR 42s, 10 ATR 72s, 3 E-190s (leased), and 3 Fokker 50s.
The airline recently retired its last Avro RJ100 and Avro RJ85 in February and March 2020 respectively.
Once again, another airline affected by COVID-19 to nearly the point of collapse. Let’s hope they’re able to recover and relaunch “by summer” as they say.