World Markets

Norwegian Air sells Argentinian subsidiary to JetSMART

Credit: REUTERS/LEFTERIS KARAGIANNOPOULOS

Loss-making budget airline Norwegian Air said on Wednesday it is selling its Argentinian subsidiary Norwegian Air Argentina (NAA) to JetSMART Airlines for an undisclosed sum.

Adds quotes, background

OSLO, Dec 4 (Reuters) - Loss-making budget airline Norwegian Air NWC.OL said on Wednesday it is selling its Argentinian subsidiary Norwegian Air Argentina (NAA) to JetSMART Airlines for an undisclosed sum.

JetSMART will assume the NAA operation with immediate effect, the firm said in a statement.

"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 Chief Executive Geir Karlsen said.

Norwegian has switched this year from rapid growth to cost cuts, trimming its sprawling network in a bid to stem losses and preserve cash.

The company said JetSMART will continue to operate scheduled flights from the Buenos Aires Aeroparque airport, with the Norwegian brand expected to be phased out in the domestic Argentinian network over several months.

Three Boeing 737 aircraft currently operated by NAA will be replaced by JetSMART’s Airbus A320 aircraft, while the Boeings will return to service for Norwegian in Europe.

(Reporting by Victoria Klesty; Editing by Susan Fenton and Christina Fincher)

((victoria.klesty@thomsonreuters.com; +47 2331 6592; Reuters Messaging: victoria.klesty.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More