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Hard times for Norwegian

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Hard times for Norwegian

Old 13th Mar 2020, 07:00
  #161 (permalink)  
 
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Originally Posted by SaulGoodman View Post
What do they mean with “their workforce”? Is it 50% of the direct employed or are contractors also in this figure?
Nobody knows at this point. No specifics have been provided.
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Old 13th Mar 2020, 07:18
  #162 (permalink)  
 
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Originally Posted by SaulGoodman View Post
What do they mean with “their workforce”? Is it 50% of the direct employed or are contractors also in this figure?

All employees are employed locally, and enjoy local terms and conditions according to the country where they are based. I made more money in my last year as a FO, than some of BA’s first-second-third year captains.
Cut the yankee propaganda, its getting very tiredsome.
Thanks for the support in here and to all the haters :Norwegian will prevail, more news to follow later today.
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Old 13th Mar 2020, 07:27
  #163 (permalink)  
 
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I worked for Norwegian and was one of the crew terminated due to the demise of the Max . The process was handled decently and the folks in NAI are a great bunch of people . I hope Norwegian pull through this crisis . Its grim times for everyone in this industry with the possible exception of the Freight Dogs .
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Old 13th Mar 2020, 08:15
  #164 (permalink)  
 
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From the press release above in respect of EU/U.S. cancellations:
"Our goal is to reroute as many of our customers as possible through London"

Hopefully this just means U.S. citizens otherwise it's a 2 week transit in London?



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Old 13th Mar 2020, 15:32
  #165 (permalink)  
 
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Originally Posted by Max Tow View Post
From the press release above in respect of EU/U.S. cancellations:
"Our goal is to reroute as many of our customers as possible through London"

Hopefully this just means U.S. citizens otherwise it's a 2 week transit in London?
Yes, they don’t mean those from banned countries
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Old 13th Mar 2020, 21:05
  #166 (permalink)  
 
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Originally Posted by uncle-traveling-matt View Post
All employees are employed locally, and enjoy local terms and conditions according to the country where they are based. I made more money in my last year as a FO, than some of BA’s first-second-third year captains.
Cut the yankee propaganda, its getting very tiredsome.
Thanks for the support in here and to all the haters :Norwegian will prevail, more news to follow later today.
Everybody loves an optimist, but the package today will not keep them in the air.
CEO says it will be a matter of weeks before the airline fails unless the Norwegian government extends them a huge credit.
The way they set up this company, mainly to avoid taxes to the very country they now turn to for help, may be a big obstacle.



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Old 15th Mar 2020, 07:05
  #167 (permalink)  
 
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Originally Posted by ManaAdaSystem View Post
Everybody loves an optimist, but the package today will not keep them in the air.
CEO says it will be a matter of weeks before the airline fails unless the Norwegian government extends them a huge credit.
The way they set up this company, mainly to avoid taxes to the very country they now turn to for help, may be a big obstacle.
It sure is hypocritical to turn to Norwegian government for help.
From Wikipedia

Labour relations

Between 2011 and 2013, Norwegian Air Shuttle (NAS) received criticism regarding its treatment of employees.

The media first reported NAS's announced intention to open a base in Helsinki, from where it hired pilots on short-term contracts in Estonia rather than as employees within the company. The Norwegian tax-office authorities reportedly suspected in August 2012 that many Norwegian citizens were working for NAS on these contracts and not paying Norwegian taxes, despite operating on flights originating from Norway.]The Norwegian Pilot's Union (NPU) brought NAS to court over the short-term contracts. Then-CEO Bjørn Kjos appeared to inflame matters when he declared that NAS would no longer hire employees on Norwegian terms.

In 2012, NAS started to use contract-employed pilots on routes within Scandinavia, considered by the NPU to be an abrogation of labor terms regarding non-Scandinavian pilots on routes within Scandinavia. The NPU soon after sued NAS.

In October 2013, the NPU announced its intention to strike because NAS had forced its pilots to face dismissal or transfer to Norwegian Air Norway or Norwegian Air Resources AB, both subsidiaries of NAS; the respective subsidiary would then hire the pilots back to NAS. The NPU and its Swedish counterpart SPF accused NAS of using this ploy to break the solidarity and organisation of the pilots, with the eventual goal of coercing pilots to convert their jobs to contract positions.

In mid-December 2013, NAS demanded that its Swedish non-contract flight attendants transfer to Proffice Aviation, an external staffing company, or face dismissal. According to the Swedish cabin-crew union, Unionen, it managed to save the jobs of 53 NAS employees, but it was dissatisfied with the direction NAS had taken. The situation led to the leader for the Swedish Left Party, Jonas Sjöstedt, to state that stricter regulation was needed for the use of staffing-companies in Sweden.
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Old 15th Mar 2020, 11:40
  #168 (permalink)  
 
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Not a bail out. Increases liquidity in the short term to continue to operate in these circumstances. every company will likely need this
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Old 15th Mar 2020, 12:13
  #169 (permalink)  
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Originally Posted by golfyankeesierra View Post
It sure is hypocritical to turn to Norwegian government for help.
From Wikipedia
Not really as the fragmentation and union busting tactics was the work of the old management. The new CEO seems to be more of a Kelleher kind of guy that seeks to reverse most of these wrongdoings.
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Old 15th Mar 2020, 15:21
  #170 (permalink)  
 
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Originally Posted by Lionel Lion View Post
Not a bail out. Increases liquidity in the short term to continue to operate in these circumstances. every company will likely need this
The 'liquidity' much vaunted by senior management is best viewed as a flow of money, like a stream, coming in from clients and going out to suppliers with the difference pooling in the pockets of investors in the form of dividends and increased share value. Time to release the cash from the investors is now, if they really believe in their investments then now is the time for them to step up and back them properly rather than just harvesting profit.
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Old 15th Mar 2020, 19:42
  #171 (permalink)  
 
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Can we get the thread back on track, please. Yes, I realize that most people who were rejoicing of the (perceived) thought of Norwegians demise, are probably in deep poo themselves right now, but just sharing great news from Norway.

Norway will offer companies at least 100 billion Norwegian crowns ($9.7 billion) in funding in the form of guarantees for loans and bond issues to support the economy during the coronavirus outbreak, the government said on Sunday.

“The government will do what’s needed and spend the necessary funds to secure the Norwegian economy and support Norwegian businesses, big and small,” Prime Minister Erna Solberg told a news conference.

The Nordic country invoked emergency powers on Thursday to close a wide range of public and private institutions, including schools and restaurants, in a bid to combat the spread of coronavirus.

The business support package was divided into loan guarantees of 50 billion crowns to small and medium sized companies seeking bank loans, and the same amount in the form of government guarantees to large firms issuing corporate bonds.

In addition, payments of payroll taxes will be postponed, the government added.

Further measures for industries that have been particularly hard hit will also be presented at a later time, Finance Minister Jan Tore Sanner said.



Last edited by uncle-traveling-matt; 15th Mar 2020 at 20:35.
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Old 15th Mar 2020, 20:39
  #172 (permalink)  
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Let's stick to the topic which is Norwegian Airlines!
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Old 15th Mar 2020, 23:07
  #173 (permalink)  
 
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Great news from Norway, I hope other governments react rather quickly in the same way.

Nice to see the Norwegian bases in Norway will be protected.
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Old 16th Mar 2020, 00:14
  #174 (permalink)  
 
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Originally Posted by uncle-traveling-matt View Post
“The government will do what’s needed and spend the necessary funds to secure the Norwegian economy and support Norwegian businesses, big and small,” Prime Minister Erna Solberg told a news conference.

She also added that, despite state aid, some bankruptcies are probably unavoidable.
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Old 16th Mar 2020, 14:29
  #175 (permalink)  
 
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7300 staff on furlough, 85% of flights grounded.
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Old 16th Mar 2020, 14:46
  #176 (permalink)  
 
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'However, I want to emphasize that this is temporary...'

Norwegian to cancel 85 percent of its flights and temporarily layoff approximately 7,300 colleagues

Press release • Mar 16, 2020 13:21 GMT

The COVID-19 situation is escalating by the hour and due to stagnating demand and enforced travel restrictions by authorities worldwide, Norwegian will gradually cancel most of its flights and temporarily lay off a major share of its workforce.

“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. We appreciate that the authorities of Norway have communicated that they will implement all necessary measures to protect aviation in Norway, consequently securing crucial infrastructure and jobs,” said CEO Jacob Schram of Norwegian.

Norwegian has already discontinued a significant number of its flights and the main priority this week is to maintain as many scheduled flights as possible to ensure that customers are able to immediately return to their home destinations. The company will also work closely with the authorities to arrange flights for the benefit of stranded passengers, if necessary. Customers who are directly affected by route changes and cancellations will be contacted by Norwegian via text message or e-mail.

“We understand that this extraordinary situation is stressful for our customers, but I want to assure everyone that we are working around the clock to ensure that everyone is taken care of in the best way possible at this time,” said Schram.

As a result of most of the company’s planes being parked, Norwegian unfortunately has to temporarily lay off more than 7,300 colleagues in total which equates to approximately 90 per cent of its workforce, which includes pilots, cabin crew, maintenance and administrative staff. The layoff procedures vary from country to country and Norwegian’s team is already in constructive dialogues with union and HSE representatives at all its locations across the network.

“It is indeed with a heavy heart we have to temporarily lay off more than 7,300 of our colleagues, but we unfortunately have no choice. However, I want to emphasize that this is temporary, because when the world returns to normalcy my goal is to keep as many of our dedicated colleagues as possible,” said Schram.
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Old 19th Mar 2020, 22:34
  #177 (permalink)  
 
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Terms apply yes, but this comes after several meetings between government officials, and Norwegians management. They wouldn't come up with these specific terms, if they knew Norwegian couldn't abide with them. This will cover them until june, if they need more money, they will get more. CEO looked very confident in his press conference after the governments announcement , and said "Norwegian will emerge from this, stronger than ever"
Im sure a restructured Norwegian will rise from the ashes of this corona nightmare.
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Old 20th Mar 2020, 08:12
  #178 (permalink)  
 
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Financial newspapers in Norway beg to differ. They think it unlikely Norwegian will be able to fulfill the requirements for the aid package.
Circuit breaker just popped on NAS on the stock exchange.
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Old 20th Mar 2020, 09:05
  #179 (permalink)  
 
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Same thing happened a few years ago when IAG bought some stock in Norwegian. Trading was suspended for a period.
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Old 20th Mar 2020, 16:35
  #180 (permalink)  
 
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Originally Posted by tprop View Post
Financial newspapers in Norway beg to differ. They think it unlikely Norwegian will be able to fulfill the requirements for the aid package.
Circuit breaker just popped on NAS on the stock exchange.
Because the Norwegian stock rose 28 percent and trade was stopped for 45 min. It ended at bit down for the day however the ONE newspaper you are referring to recently had an editoral pleading the Norwegian government not to support NAS, talk about being biased.
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