UPDATE 1-Norwegian Air sells Argentinian subsidiary to JetSMART

Reuters

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OSLO, Dec 4 (Reuters) - Loss-making budget airline Norwegian Air said on Wednesday it is selling its Argentinian subsidiary Norwegian Air Argentina (NAA) to JetSMART Airlines for an undisclosed sum.

JetSMART will assume the NAA operation with immediate effect, the firm said in a statement.

"Attaining satisfactory profitability for a relatively small domestic operation has proved difficult to achieve, given the overall situation in the country," Norwegian Air's acting Chief Executive Geir Karlsen said.

Norwegian has switched this year from rapid growth to cost cuts, trimming its sprawling network in a bid to stem losses and preserve cash.

The company said JetSMART will continue to operate scheduled flights from the Buenos Aires Aeroparque airport, with the Norwegian brand expected to be phased out in the domestic Argentinian network over several months.

Three Boeing 737 aircraft currently operated by NAA will be replaced by JetSMART’s Airbus A320 aircraft, while the Boeings will return to service for Norwegian in Europe. (Reporting by Victoria Klesty; Editing by Susan Fenton and Christina Fincher)