Norwegian subsidiaries file for bankruptcy

Tuesday, April 21, 2020

• Most countries having advised against or banned non-essential travel and the closure of borders and quarantine restrictions has effectively brought the entire airline industry to a halt.

Consequently, almost all of the flight operations offered by Norwegian have been cancelled, while the costs of air crew remain.

The pilots and cabin crew in Scandinavia are employed in subsidiaries in the Norwegian Group.

Even though measures were taken the company has already taken to reduce costs, the board of these companies are left with no choice but to apply for bankruptcy.

The impact the coronavirus has had on the airline industry is unprecedented.

Chief executive of Norwegian, Jacob Schram said they have done everything they can to avoid making this last-resort decision and have asked for access to government support in both Sweden and Denmark.

Their 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 he felt  sorry for the consequences.

They 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.

There are furlough opportunities in Norway which means that the government pays for all salary related costs throughout the duration of the furlough period but there is no equivalent coverage in Sweden or Denmark schemes.

Norwegian has also notified OSM Aviation that it has cancelled the crew provision agreements with several of its jointly owned OSM Aviation subsidiaries in these extraordinary situation

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