European low-cost carrier Norwegian has applied for bankruptcy, on four separate flight crew companies in Scandinavia.
“Almost all of Norwegian’s flight operations have been cancelled, while the costs for air crew remain. The pilots and cabin crew in Scandinavia are employed in subsidiaries in the Norwegian Group.”
Norwegian Group press release
The move will affect 1,571 pilots and 3,134 cabin crew based in Sweden and Denmark, according to a statement released by Norwegian Group.
The airline states that the measures already taken were not enough; the lack of significant financial support, from the Swedish and Danish governments, has left them with no other choice.
“The impact the Coronavirus has had on the airline industry is unprecedented. We have done everything we can to avoid making this last-resort decision and we have asked for access to government support in both Sweden and Denmark”
said CEO of Norwegian, Jacob Schram.
Below are the Norwegian Group companies that filed for bankruptcy:
- Norwegian Pilot Services Sweden AB
- Norwegian Pilot Services Denmark ApS
- Norwegian Cabin Services Denmark ApS
- Norwegian Air Resources Denmark LH ApS
The airline has also cancelled their contract with OSM Aviation, to provide crew going forward. Norwegian has crews based in Spain, UK, Finland, Sweden and the US.
About 700 pilots and 1,300 cabin crew based in Norway, France and Italy will not be affected, for now.
Contrary to what happens in Denmark and Sweden, in Norway there are efficient furlough opportunities; what this means is that the government pays for all salary-related costs, throughout the duration of the furlough period.
“Our pilots and cabin crew are the core of our business and they have done a fantastic job for many years. It is heart-breaking that our Swedish and Danish pilot and cabin crew subsidiaries now are forced to file for bankruptcy, and I’m truly sorry for the consequences this will have for our colleagues. We are working around the clock to get through this crisis and to return as a stronger Norwegian, with the goal of bringing as many colleagues back in the air as possible,”
said CEO of Norwegian, Jacob Schram.
All of Norwegian’s fleet is stored – including 37 787s and 81 737-800s – except for 9 Boeing 737-800s that normally operate routes from Norway.
Article Source: Norwegian Group Statment