NextJet loses license to fly

Swedish regulators have downgraded regional carrier NextJet to a temporary air operator’s certificate (AOC) because of financial concerns, triggering the airline to recapitalize.

The airliner can, however, continue to fly on a time-limited operating license valid until November 17th. It was SVT Västernorrland that first reported about the decision.

In August, the airliner’s accountant said he could no longer be convinced about NextJet’s possibility to survive economically. «There are significant uncertainties that can lead to significant doubts about the company’s ability to continue its business,» the accountant wrote in the company’s annual report.

NextJet operates a fleet of 14 aircraft—10 Saab 340s and four British Aerospace ATPs—on its own scheduled services and lease for other operators.

Following the intervention, NextJet’s management team agreed to a recapitalization.

“NextJet´s owners have, at an extra[ordinary] general meeting, decided to strengthen the company’s financial situation in both [the] short- and long-term. This means that NextJet will fly as usual even after Nov. 17,” NextJet said.

The recapitalization will come in two stages. These comprise a SEK42.5 million ($5.3 million) new share issue and the sale of two aircraft, which will boost cash flow and kick off a fleet modernization plan.

“In total, the company will strengthen its finances with approximately SEK70 million,” the airline said.

NextJet operates from Stockholm, Gothenburg and Helsinki to smaller cities in Sweden and Finland. The airline changed ownership just over a year ago and, since then, the management team has been working to cut costs and grow revenues.

“The company has had a positive trend in the amount of passengers during the past six months and the forecast for the coming six is also looking positive,” NextJet said.