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TRAVEL NEWS

Stockholm’s Bromma Airport’s future in doubt after it loses 90 percent of air traffic

The future of Stockholm's second airport, Bromma, is in doubt after regional airline BRA struck a deal with SAS that will move nearly all flights to Arlanda Airport.

Stockholm's Bromma Airport's future in doubt after it loses 90 percent of air traffic
SAS CEO Anko van der Werff and Per G Braathen, owner of BRA, at Arlanda to where the latter will move its flights. Photo: Christine Olsson/TT

As of January 1st, BRA will operate flights on behalf of SAS with Stockholm’s principal airport Arlanda as a hub, the two airlines announced in separate press releases.

As a result, around 90 percent of air traffic will disappear from Bromma airport, according to the Stockholm Chamber of Commerce.

“I don’t think the airport will survive without us,” Per G Braathen, president of the BRA airline, told a press conference.

“We have been present at Bromma for 25 years and it is not profitable to run this airport. We need to concentrate on Arlanda,” he added.

The deal with SAS extends for over seven years and is worth around six billion kronor (530 million euros), BRA said in a statement.

The airline added that its fleet would be expanded and “more pilots and cabin crew will be recruited”, while ground services and administrative functions would be reduced.

The integration of BRA’s fleet with SAS will enhance Swedish infrastructure but is also “positioning Arlanda as a stronger central hub for domestic and international travel”, SAS CEO Anko van der Werff said in a statement.

Jonas Abrahamsson, CEO of Swedavia which operates Sweden’s airports, said that Tuesday’s announcement meant that domestic flights would now be concentrated on Arlanda.

“Bromma in principle will be without scheduled services,” Abrahamsson said in a statement.

He added that while many travellers liked Bromma, “a consolidation of air traffic to Arlanda is a natural development”.

Bromma Airport will lose its biggest air traffic operator from the turn of the year. Photo: Fredrik Sandberg/TT

The city of Stockholm wants to close Bromma airport as soon as possible to make way for housing and infrastructure, but Swedavia has a contract to operate the airport until 2038.

Daniella Waldfogel, CEO of the Stockholm Chamber of Commerce, welcomed the announcement and said it meant that the closure of Bromma should be “moved forward”.

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BUSINESS

Swedish PM says state has ‘no plans’ to rescue Northvolt

Sweden has no plans to rescue financially-strained electric car battery maker Northvolt, hit by slumping electric car sales in Europe and stiff Chinese competition, Prime Minister Ulf Kristersson said on Monday.

Swedish PM says state has 'no plans' to rescue Northvolt

Northvolt announced on September 9th that it planned to slash its workforce and scale back its operations in order to improve its “financial stability”.

“There are no plans for the Swedish state to become a part owner of Northvolt or anything like that,” Kristersson said at a press conference.

READ ALSO: Northvolt warns of layoffs in bid to cut costs

However, he said, “we are committed to making Sweden a good place… for the new technology that is needed for the green transition” and “for that kind of industry”.

“Right now the ball is in the court of Northvolt’s owners,” he said.

German car giant Volkswagen is Northvolt’s main shareholder with 21 percent.

Since its creation, the Swedish company has secured the equivalent of 15 billion dollars of credit and capital.

Europe lags far behind China in the production of batteries for electric vehicles.

Northvolt has been seen as a cornerstone of European attempts to catch up with China and the United States in the production of battery cells, a crucial component of lower-emission cars.

Europe accounts for just three percent of global battery cell production, but has set its sights on 25 percent of the market by the end of the decade.

Northvolt said it was putting a facility that makes cathode active material at its main Swedish site in Skelleftea “into care and maintenance until further notice”.

It did not say how many jobs it would cut. It had 5,860 employees at the end of 2023.

The company also recently announced it was scrapping plans to build a facility to produce battery materials in the Swedish town of Borlänge.

According to Swedish media, the company is working on a new share emission in order to raise 7.5 billion kronor.

Northvolt is the latest in the series of Swedish tech giants to struggle with the economic pressure of the past few years.

Swedish telecoms equipment company Ericsson said earlier this year it was cutting 8.6 percent of its Swedish workforce.

In early August, the Swedish Labour Ministry announced that the country was facing its highest unemployment rate in a decade, excluding the pandemic period.

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