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Norwegian is now taking steps to get rid of employees in Sweden, Denmark, Spain, the United Kingdom, Finland and the United States. Employees in Norway, France and Italy are not affected.
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The four Norwegian personnel companies in Sweden and Denmark declare bankruptcy, according to a report. The decision was made on Monday.
Additionally, the OSM personnel company has been notified that various deals are being canceled.
These companies go bankrupt:
- Pilot services Sweden AB
- Norwegian Pilot Services Denmark ApS
- Norwegian cabin services Denmark ApS
- Norwegian Air Resources Denmark LH ApS
In total, this affects a total of 1,571 pilots and 3,134 cabin employees in Sweden, Denmark, Finland, Spain, the United Kingdom and the United States.
The approximately 700 pilots and 1,300 cabin crew based in Norway, France and Italy are not affected.
“This is the worst crisis the airline industry has experienced and we have done everything we can to prevent this from happening now with our subsidiaries in Sweden and Denmark,” says Norwegian CEO Jacob Schram of bankruptcy petitions at The report.
Read the company’s stock listing here
Make appointments with Espen Høiby’s personal agency
In addition to filing for bankruptcy for its own personnel company, Norwegian has also taken control of its largest personnel partner to reduce wage costs in other countries.
The company has used the so-called “force majeure” reservation in its contract with the personnel agency OSM Aviation to terminate the crew agreements in Spain, the United Kingdom, Finland, Sweden and the United States.
Pilots and cabin crew in Norway, France and Italy are not affected.
OSM Aviation is the manning and training group created by Espen Høiby and which has both Norwegian and international airlines on the client list.
E24 was able to report Wednesday night that OSM Aviation UK employees traveling to Norwegian had been notified that neither OSM nor Norwegian were in a financial position to pay April wages.
Also read
Norwegian and OSM will not be paid to British employees in April
– There is no time to wait
Schram says that, like its competitors, Norwegian has called for state support in both Sweden and Denmark.
– The first formal request to the Swedish authorities was sent a month ago, but no concrete proposals for liquidity measures have yet been made. We have no time to wait, because this crisis is urgent, says Schram.
– Our pilots and cabin crew are very important to Norwegian operations and have done a fantastic job. This has been an extremely difficult decision and I would like to deeply apologize to our employees who are now being affected, Schram continues.
He says that the company is now working 24 hours to overcome the crisis and be able to get out of the situation “stronger than ever, where we can also offer more jobs for flight personnel in the future.”
Other dismissal rules
Sweden and Denmark do not have the same taxation rules as Norway, making it more demanding for companies struggling to cut wage costs in a crisis. Regulatory changes have been made in Sweden and Denmark as a result of the crisis, but this has obviously not been enough to avoid having to take this step as Norwegian is doing.
“Unfortunately, there is no corresponding coverage under Danish and Swedish rules” like Norwegian dismissal rules, Norwegian notes in the stock exchange announcement.
Norwegian airline operating in Sweden, Norwegian Air Sweden, is not affected. Norwegian has 54 registered aircraft in Sweden and an operating license in Sweden.
Norwegian has not flown in Sweden or Denmark for several weeks due to the corona virus. The only traffic the company has now is from some exits from Norwegian airports and it participates in the cooperation agreement that they, SAS and Norwegian have with the Norwegian authorities to maintain a minimum supply of air routes during the crisis.