In a move to increase profitability, low-cost airline Norwegian is selling its Argentine subsidiary to Jetsmart Airlines, according to a report. Stock exchange announcement. No purchase price is stated.
”"Norwegian is moving from growth to profitability and in recent months we have made important changes to our route network to ensure long-term profitability. It has proven difficult to achieve satisfactory profitability in the country, given the situation in the country. Most of our revenues are in pesos, but costs are in dollars," writes the company's CFO and acting CEO Geir Karlsen in a press release.
The company writes that it will not disclose the financial terms of the deal.
”"The agreement we have signed with Jetsmart ensures that what we have built up in Argentina over the past two years is carried forward. Now the two newest airlines in Argentina will become a stronger entity that together will have around 10 percent of the domestic market and become the third largest operator in the country."”
Norwegian Air Argentina received its operating license in January 2018 and began flights in October of the same year. The company operates 20 flights per day.
Source: di.se
