Norwegian Air sells Argentinian subsidiary to JetSMART

Norwegian Air has sold subsidiary Norwegian Air Argentina for an undisclosed sum, with JetSMART Airlines taking control with immediate effect. Norwegian’s Argentina operation launched only in October last year and currently offers flights from Buenos Aires to eight cities. However, Norwegian has switched this year from rapid growth to cost cuts, trimming its sprawling network to stem losses and preserve cash. “Attaining satisfactory profitability for a relatively small domestic operation has proved difficult to achieve, given the overall situation in the country,” Norwegian Air’s acting CE Geir Karlsen said of the Argentinian business. “While most of NAA’s costs are denominated in dollars, revenue is obtained in pesos only, and the sharp depreciation of the peso against the dollar has created a significant gap between costs and revenue.” The company said JetSMART will continue to operate scheduled flights from Buenos Aires, with the Norwegian brand expected to be phased out in the domestic Argentinian network over several months.<br/>