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– There were probably many who weren’t prepared enough for wave number two to hit so hard and last so long, Flytoget director Phillip Engedal tells TV 2.
The crown crisis has caused a dramatic drop in ticket sales of up to NOK 56 million, a reduction of 71 percent from the previous year, for Flytoget. He says that the authorities’ press conferences quickly have important consequences for them:
Flytoget this year:
- In January and March, the company experienced an increase of a slight decrease, of three percent, in turnover, compared to the previous year. This corresponds to NOK 5.3 million.
- In March, when Norway closed, turnover fell 55 percent compared to the same month last year.
- In April and May, the decrease was 76 percent, a decrease of NOK 57.8 million and NOK 70 million, respectively.
- In June, the decrease was 52 percent (NOK 49 million)
- In August, the decrease was NOK 2.3 million, which corresponds to 36% in August of the previous year.
Source: Company figures provided to the Tax Administration to receive support for the compensation scheme and the salary support scheme.
– We fully understand the strict travel restrictions, but it is clear that the advice of the health authorities will have important consequences for the volume of passengers and, therefore, for Flytoget as a company.
“We have great faith that Norwegians will travel again when the pandemic is under control, and we can’t wait to see our customers again, but right now it is difficult,” says the director.
Flytoget is the company registered in the Oslo area that has received the most in crowns and øre to recover those laid off as a result of the crown crisis, according to figures from the Tax Administration. The company was hit the hardest in percentage points in April and May, when the decline in revenue was up to 76% compared to the previous year.
Lose significant income
All of his employees have now returned to work, but a total of 205 people have been laid off at the company. They received NOK 2.2 million from the state to recover the equivalent of about 113 man-months. But this is not what has saved the company this year.
COMPLAINED: Phillip Engedal, CEO of Flytoget, says they do not understand why they are not receiving the same crisis support that they have received so far next year. Photo: Tore Meek
“Fortunately we have an agreement with the Norwegian Railways Authority on public procurement, which means that Flytoget’s financial situation is not as bad as it could have been,” says Engedal.
In August, they were paid 27 million. In November / December, the Flybuss director believes the number will be close to the ceiling of the scheme, which is 30 million.
These have received the largest national amount
- Beerenberg Services: 5,250,500 kr
- NSE Industries: DKK 3,135,000
- STS Group: DKK 3078,000
- Scandic Hotels: 2985704 kr
- Fosdalen: 2820000 kr
- More extensive ground handling: DKK 2,267,400
- Flytoget: 2232054 kr
- Rail Gourmet Norway train service: 1805 250 kr
- Solid Energy: DKK 15.82500
- TS Group Operation: 1,365,000 kr
- Nor textile: 1263939 kr
- Hotel Union Geiranger: 1225,000 ISK
- Winning Access Technique: NOK 1159670
- Brunvoll: 1121238 kr
- Service canteen 4: 1117105 kr
- Participation: ISK 1070000
- Taxi 1: 1024500 kr
- Radisson Hotels Norway as: 992 400 kr
- Old Irish Pub Norway: 990000 kr
- Norwegian Lutheran Mission Association: NOK 989520
– This support is crucial for us, says Engedal.
And precisely because of this rescue, there is also great uncertainty between them. Because even though the Norwegian Railway Directorate scheme will continue until 2021, Flytoget is not on that list.
Have filed a complaint
– Based on, among other things, the evaluations of transport professionals, the mandate does not provide the opportunity to extend this agreement in 2021, it is stated in the evaluation of the Norwegian Directorate of Railways.
Engedal says he is very concerned about this, as the passengers are probably still far away.
– We do not understand that we are not covered by the additional scheme and, therefore, we have chosen to send a complaint to the Ministry of Transport, he says.
The Ministry confirms that they have received the complaint.
– The Flytoget complaints are now being carefully considered by the Ministry of Transport and Communications, and there will be feedback as soon as possible, they reported in an email to TV 2.
