Four Norwegian Danish and Swedish subsidiaries have filed for bankruptcy due to inability to continue paying wages. The airline uses these firms to hire pilots and cabin crew who operate in Scandinavia and given the impossibility of implementing temporary employment adjustments similar to the ERTE in Spain and to get public aid in Denmark and Sweden, the company has decided to declare them in bankruptcy.
This measure does not affect Norway, where there is indeed a coverage system for the suspension of contracts during mobility restrictions and the company is close to receiving aid of 250 million euros. “In Norway there is an efficient system of contract suspension (or ERTE), which means that the Government bears all wage costs throughout the suspension period. Unfortunately, equivalent coverage does not exist in either Sweden or Denmark,” the firm points out.
“Unfortunately, equivalent coverage for the suspension of contracts does not exist in either Sweden or Denmark”
The bankruptcy of the human resources subsidiaries will affect 1,571 pilots and 3,134 cabin crew. About 700 pilots and 1,300 cabin crew based in Norway, France and Italy will not be affected, the firm reports. “I very much regret the consequences that this will have for our colleagues. We are working day and night to overcome this crisis and return with a stronger Norwegian, with the aim of recovering as many colleagues as possible in the skies,” continued the CEO. from Norwegian Jacob Schram. Along these lines, the chief executive has acknowledged that he has asked the Danish and Swedish governments for help.
The bankruptcy of the human resources subsidiaries will affect 1,571 pilots and 3,134 cabin crew
In the United Kingdom, OSM, the company that employs British crews, has taken advantage of the measure promoted by the Executive of Boris Johnson to assume the payment of 80% of the payroll of workers affected by the pandemic, and in Spain it has It has also carried out temporary personnel adjustments since the company has not operated in our country since the end of March, the month in which its passenger traffic fell 60%.
“Due to the extraordinary situation of force majeure, Norwegian has notified OSM Aviation of the cancellation of crew provision agreements with several of the subsidiaries jointly owned with OSM Aviation. These companies have crews based in Spain, the United Kingdom, Finland, Sweden and the United States “, informs the company that limits its activity to domestic flights in the Scandinavian region after leaving more than 90% of the fleet on the ground.