July 2 2020
The Corona crisis has hit society hard, and aviation has been particularly affected. Nordic MRO, who performs aircraft maintenance in the Nordic countries and Italy, has due to this been forced to apply for company reconstruction, which can be compared to voluntary protection under Chapter 11, in order to save the company from bankruptcy. The company is thus given the opportunity to prepare for the recovery of aviation as well as secure more funding for the future.
Since COVID-19 became a global pandemic, the operations in Nordic MRO have been severely affected, since the demand for aircraft maintenance has plummeted. Furthermore, the company’s customers have seen a decrease in ability to pay the accounts receivables, leading to a strained liquidity.
“It has been a difficult decision, but we believe that this is the best way forward for the company’s long-term survival. We realize that this might be an inconvenience for both our customers and suppliers, which we are sorry for,” says CEO Lisa Hällbrink. “We need time for our customer’s business to get back up on its feet and to find new customers, partners, and investments required for the future. Amongst other things, we are looking into consolidation, which might be necessary for several other market players in the future.”
During the second half of 2019, Nordic MRO started to restructure the company to focus on profitability instead of growth. In the beginning of 2020 a new strategy within heavy maintenance (base maintenance), with a focus on ATR, was decided upon by the board. Right after the decision, COVID-19 hit aviation and the implementation of the strategy was thus decelerated.
“The management of Nordic MRO strongly believes in its capability to survive this crisis, and our organization is well-suited to meet the growing demand in the market of aircraft maintenance,” says Finn Johnsson, chairman of the board.