STOCKHOLM (1) – Sweden-based airline BRA said on Monday it had applied for court-administered reorganisation as it sought to avoid bankruptcy after the rapidly spreading new coronavirus caused a collapse in demand.
The small privately held airline had said only days ago it was temporarily discontinuing all traffic between April 6 and May 31 due to the COVID-19 pandemic, of which there have been more than 6,000 confirmed cases in Sweden.
Applying for company reorganisation is a form of administration where a court appointee is charged with restructuring the firm with the aim of avoiding bankruptcy.
Cash-strapped carriers across the world including Nordic rivals SAS (SAS.ST), Norwegian Air (NWC.OL) and Finnair (FIA1S.HE) are struggling and seeking bailouts, having drastically reduced flying schedules as the pandemic has brought air travel to a near halt.
Norwegian Air (NWC.OL) reported on Monday a 60% drop in passenger volume in March.
BRA, created in 2016 in a merger of several smaller Nordic airlines, has been serving about 20 destinations, mostly in Sweden. The company employed about 1,100 people in 2018 with an annual turnover of 2.7 billion Swedish crowns.
Reporting by Anna Ringstrom; editing by Niklas Pollard