EMCC European Monitoring Centre on Change

Braathens Regional Airlines

Company/Organisation:
Braathens Regional Airlines

Geographic Location

Country: Sweden

Company

Sector: Transportation / storage
Transportation and storage
51.1 - Passenger air transport
Number Employed: 1100

Employment Effects

Announcement Date: 26-04-2019
Planned Job Reductions min: 363
Planned Job Reductions max: 363
Type of Restructuring: Internal restructuring
Direct Dismissals: 363

Additional Information

The Swedish domestic airlines company BRA (Braathens Regional Airlines) announced 363 dismissals from a total workforce of 1,100 employees. Staff from all units will be affected by the measure, which includes pilots, cabin crew, engineers and administrative staff. The cuts are set out as a response to the decreased demand on domestic flights. According to The Swedish Transport Agency, the company's flight activity decreased by 3,7% during 2018 in Sweden, and in the first quarter of 2019 the demand has decreased by 5%. The CEO of BRA also mentioned the flight tax that was introduced by the government in 2018 as one reason for smaller economic margins for the company.

In 2019-2020, the company will phase out its 10 jet planes and replace them with 12 smaller propeller planes in their fleet as this is more efficient regarding the amount of staff needed to keep the planes in the air. BRA has 19 destinations across Sweden and the route Stockholm-Jönköping will be closed in June 2019, while the route Stockholm-Östersund will have reduced departures. There will instead be more flights to the Island of Gotland. BRA has 30% of the domestic flights' market share in Sweden.  
 

Sources: