EMCC European Monitoring Centre on Change

Norwegian Air Resources Finland

Company/Organisation:
Norwegian Air Resources Finland

Geographic Location

Country: Finland

Company

Sector: Transportation / storage
Transportation and storage
51.1 - Passenger air transport
Group: Norwegian

Employment Effects

Announcement Date: 26-06-2020
Planned Job Reductions min: 120
Type of Restructuring: Bankruptcy
Employment Effect Start: 26-06-2020

Additional Information

Norwegian Air Resources Finland, a staffing agency owned by aviation company Norwegian, has filed for bankruptcy in Finland. As a result of this, 120 pilots will lose their jobs. These pilots are employed by the company but operate Norwegian’s planes. 

Due to the COVID-19 pandemic, many countries have set travel restrictions which led to a decrease in the volumes of air passenger travel, which has had a significant impact on the aviation company Norwegian. In April 2020, four of its subsidiaries filed for bankruptcy in Sweden and Denmark. OSM Aviation Finland, a subsidiary that employs cabin crew working on Norwegian's planes filed for bankruptcy in Finland. 

The trade union for pilots in Finland argues that the COVID-19 will have a long-lasting effect on the flight sector. According to the union, it may be difficult for the pilots who now lose their jobs to find new jobs since many other flight companies have also cut down the number of routes and the number of graduating pilots is higher than the demand.

Sources: