Sweden’s BRA files for protection to buy time for restructuring

Swedish carrier Braathens Regional Airlines has filed for protection in order to undergo a restructuring exercise. It has suspended all services with effect from 6 April with the intention of gradually resuming flights “after the summer”, it says, when conditions are expected to have improved. BRA says the decision will give it time to put together a controlled plan for its future operations. The company had previously stated, in mid-March, that it was cutting back services to a minimum level and laying off all personnel. It subsequently disclosed that it would halt all flights until 31 May. But the company says it has “done everything in its power” to adapt, and is resorting to corporate protection and restructuring measures as a result of the “acute” crisis caused by the coronavirus outbreak. “After careful consideration, the company’s board of directors has chosen to apply for restructuring and to freeze the business completely,” says BRA CE Geir Stormorken. “This will give us room to develop a long-term sustainable business plan.”<br/>