Norwegian sells subsidiary

The airline Norwegian is selliing its Argentine subsidiary to JetSMART, according to a press release from the company.

“This is an important step in order to be profitable again, writes acting CEO and CFO Geir Karlsen of Norwegian.

Norwegian Air Argentina has flown domestic routes in Argentina for two years. The plan is to phase out Norwegian Air Argentina’s three aircraft over the next few months. The aircraft will then be returned to Norway’s European network.

“It has proved difficult to achieve satisfactory profitability for the subsidiary in Argentina, given the general situation in the country,” writes Karlsen.

Part of the reason is that the majority of the company’s costs are in dollars, but the revenue is in pesos.

“The sharp weakening of the peso against the dollar has created a significant gap between costs and revenue,” writes Karlsen.

© NTB Scanpix / #Norway Today