Norwegian fires another 1,600 after government refusal – E24

The case is being updated …

On Monday morning, the government announced that it would not provide further support to Norwegian, as requested by the company.

Norwegian chief Jacob Schram described the decision as a “punch to the stomach.”

Monday afternoon reports the company that “are forced to fire another 1,600 employees as a result of the authorities’ decision not to provide further support.”

Norwegian has already had to lay off or lay off most of its employees thanks to the crown crisis. Now a new group is being laid off, more planes are put on the ground and the company will once again fly only domestically in Norway.

– I deeply apologize to all colleagues who are now affected, but there is no alternative, says Schram in the announcement of the stock exchange.

The government would not give Norwegian or the newly created “Braathen Air” more support than that offered to all airlines in Norway under the blanket schemes.

The government justified this on the grounds that it involves too great a risk, that it distorts competition, and that taxpayers’ money is not being used well.

“The consequences of the authorities’ travel restrictions are critical and Norwegian must keep operating costs to a minimum while the company works with solutions to survive,” the company writes in a statement from the stock exchange.

This happened today:

Parking 15 of 21 aircraft

This summer, Norwegian has increased the number of planes in the air. This spring, there were only six to eight aircraft in the air and 200 in the worst-case scenario, while the company chose to increase this to between 20 and 30 aircraft during the summer and fall.

This happened after the company managed to launch a first rescue package in early May. That package included a government-guaranteed loan of NOK 3 billion and a significant debt reduction, where creditors received shares as compensation.

Now international routes are being abandoned and more planes are put on the ground:

– As a result of today’s disappointing government statement, we have no choice but to fire another 1,600 colleagues and park 15 of the 21 aircraft we have had in operation in recent months, says CEO Jacob Schram in the exchange announcement of values.

– Our goal is to keep six aircraft in the air on domestic routes in Norway and I look forward to Norwegian receiving en-route support from the Ministry of Transport, as previously announced, continues.

Norwegian had more than 11,000 employees and 156 aircraft in operation before the crisis. Now there will be about 600 employees on the job again and 6 planes in the air, according to the company.

– The travel restrictions recently introduced by the authorities have effectively put an end to any hope of a stable and progressive takeover of the market. Norwegian has been affected on all sides by factors beyond our control, says Schram.

Norwegian held a press conference on Monday after the government’s decision was announced. However, the company has canceled its quarterly filing scheduled for Tuesday, although the accounts are yet to be published.

Norwegian Stock Listing

Here, Norwegian will fly forward

Norwegian is now announcing that it will cancel all international routes.

– We will do our best to offer affected customers a travel alternative and I apologize for the consequences of this situation, says the Norwegian manager.

Here is the list of routes Norwegian will operate now in the future:

• Oslo – High
• Oslo – Bergen
• Oslo – Bodø
• Oslo – Evenes
• Oslo – Haugesund
• Oslo – Kirkenes
• Oslo – Mold
• Oslo – Stavanger
• Oslo – Tromsø
• Oslo – Trondheim
• Oslo – Ålesund
• Tromsø – Longyearbyen