Norwegian Air is in Trouble
Norways airline is in a major financial crisis & lack of demand.
Norwegian cuts almost all its flights
Due to the coronavirus pandemic, Norwegian Air Shuttle has been pulling back from some flight routes. Already it had been reported to be grounding around 40% of its long-haul fleet and to have plans in place to cancel approximately 3,000 departures up to June this year. However, on Monday Norwegian revealed the true extent of their crisis.
Announced by the airline today, the COVID-19 pandemic means it will gradually cancel approximately 85% of its scheduled flights. The airline said that its main priority this week is to maintain as many of its flights as possible to ensure its passengers are able to return to their homes.
“What our industry is now facing is unprecedented and critical as we are approaching a scenario where most of our airplanes will be temporarily grounded. Several governments in Europe have already said that they will do everything they can to ensure that their airlines can continue to fly when society returns to normalcy."
As a result of grounding almost all its flights, Norwegian is left with a surplus of staff. This has caused the airline to announce that it will be temporarily laying off a huge proportion of its employees.
In total, the airline says it will layoff some 7,300 staff members, which amounts to around 90% of the total workforce. These layoffs will affect pilots, cabin crew, maintenance and administrative staff. Norwegian is already in discussions with unions and HSE representatives at its bases around its network regarding these job losses.
Requesting Financial Support
Recently, The airline reached out to the government of Norway, requesting support. The amount of financial support requested was not disclosed, but the airline stated that it needed a decision ‘within weeks, not months’ if it was to survive this pandemic.
What are your thoughts?
This surplus of struggling airlines is taking a toll on thousands of workers worldwide. It is likely that this isn’t going to end anytime soon; and we’re almost guaranteed to see more than Flybe go out of business. How do you think that airlines can survive these hard times?
Here’s the video I created about this. It contains the same information included in this post.