Norwegian’s pilot and cabin crew companies in Sweden and Denmark have filed for bankruptcy.
Pilots and cabin crew in Scandinavia are employed by subsidiaries in the Norwegian Group, and the board of those companies say they have been "left with no choice" but to apply for bankrupcy amid the ongoing coronavirus crisis.
There are 1,571 pilots and 3,134 cabin crew working for Norwegian Pilot Services Sweden, Norwegian Pilot Services Denmark, Norwegian Cabin Services Denmark and Norwegian Air Resources Denmark who are affected.
"We have done everything we can to avoid making this last-resort decision and we have asked for access to government support in both Sweden and Denmark," said Jacob Schram, Norwegian’s chief executive.
“Our pilots and cabin crew are the core of our business and they have done a fantastic job for many years. It is heart-breaking that our Swedish and Danish pilot and cabin crew subsidiaries now are forced to file for bankruptcy, and I’m truly sorry for the consequences this will have for our colleagues."
He said they are "working around the clock" to face the challenges brought on by the Covid-19 pandemic, and there are not "efficient" enough furlough schemes in Sweden or Denmark.
This comes as Norwegian’s flight operations have been cancelled.
About 700 pilots and 1,300 cabin crew based in Norway, France and Italy are not affected.