Norwegian transfers 100% of its Argentine subsidiary to JetSMART Airlines

All passengers who have purchased Norwegian Air Argentina flights will fly as planned

Norwegian Air Shuttle has signed an agreement for the transfer of 100% of its Argentine subsidiary Norwegian Air Argentina (NAA) to JetSMART Airlines.

With this agreement, JetSMART will assume the operation of the subsidiary «with immediate effect,» Norwegian explained this Wednesday in a statement.

To minimize the impact on passengers, JetSMART will continue to operate scheduled NAA flights from the Buenos Aires Airpark. However, both parties expect the integration process to continue for several months, so that the Norwegian brand will be gradually removed from the Argentine domestic network.

Over the next six months, the three Boeing 737 aircraft currently operating with NAA will be replaced by JetSMART Airbus A320, although the company has clarified that the Boeing aircraft «will return to Norwegian service in Europe.»

Norwegian Chief Financial Officer and Chief Executive Officer, Geir Karlsen, explained that, although most NAA costs are denominated in dollars, revenues are obtained only in pesos, and the strong depreciation of the peso against the dollar «has created a significant gap between costs and revenues. »

«We believe that the agreement we signed today with JetSMART ensures a significant part of what we have built during these two years, in terms of network continuity and opportunities,» Karlsen said.

The company has remarked that all those passengers who have bought NAA flights «will fly as planned.»

In addition, it has detailed that, since NAA only operates domestic flights within Argentina, the agreement does not affect Norwegian’s long distance journeys between London and Buenos Aires, since this route is operated by the group’s British subsidiary, Norwegian Air UK Nor does it affect the development plans for long-haul routes between Europe and Argentina, or other countries in South America.