Norwegian Air

History

2020: Reduction of 4700 jobs

In April, 2020 Norwegian Air announced reduction of 4700 jobs after bankruptcy of four subsidiary companies in Sweden and Denmark. Airlines on everything continue to undertake various measures for maintenance of business in the conditions of a pandemic of a coronavirus of COVID-19 because of which air flights became much less.

We did everything possible to avoid adoption of this extreme solution, and we asked to provide access to the state support both in Sweden, and in Denmark, - the CEO of the company Jacob Shram reported.

Norwegian Air lays off 4700 employees after bankruptcy of four "subsidiaries"

In these countries pilots and stewards are issued for work at airline not directly, and through four structural divisions: Norwegian Pilot Services Sweden AB, Norwegian Pilot Services Denmark ApS, Norwegian Air Resources Denmark LH ApS and Norwegian Cabin Services Denmark ApS.

In total under reductions 1571 pilots and 3134 stewards will get. At the same time work will be saved by 700 pilots and 1300 stewards in Norway, France and Italy.

Norwegian Air aims to convert the capital and to attract money from shareholders, at the same time trying to obtain guarantees from the Norwegian government in attempt to endure crisis because of a coronavirus pandemic.

The company planned exchange of a debt for actions for the amount of $1.2 billion necessary for survival of airline during large-scale crisis in the industry. Norwegian Air within the provided plan intends to convert about 15% of the debt (about 8.9 billion kroner) into actions and also to attract the fresh capital in the amount of 400 million kroner ($40 million). 

Norwegian Air warned that the main part of the fleet of the company will probably remain on the earth the next 12 months.

The airline got a financial support from the authorities in Norway. The authorities undertook obligations for the salary before the staff of Norwegian Air for a downtime.^[1]

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