Thursday, 21 May 2020

Finnair plans to adjust personnel resources to the decreased operations due to coronavirus situation Finnair begins discussions with its employees on possible additional layoffs. Between April and June From July, Finnair flies only 5 per cent of its normal traffic and has thus already temporarily laid off its personnel. Finnair will gradually add frequencies and routes back to its network starting from July. In July, Finnair aims to operate approximately 30% of its normal amount of flights. Finnair will review its schedule on a monthly basis and will update it as travel restrictions are removed and demand starts to recover. It estimates to fly approximately 70 percent of its normal capacity at the end of this year. As Finnair is not able to operate a full traffic program immediately due to the coronavirus situation, there is less work available for the personnel. As Finnair has previously indicated, the need to adjust personnel resources to the situation continues at least for 2020. For this reason, Finnair will now start discussions with its personnel on additional layoffs. “It is clear that as we fly significantly less, the amount of work available is lower than normally as well. The gradually growing traffic program will increase also resource needs in due course. However, considering the uncertainties caused by travel restrictions and the coronavirus situation in general, the return to normal will take a considerable time. That is why the temporary layoffs we now start negotiations on unfortunately seem to be inevitable, ”says Johanna Karppi, SVP for People & Culture at Finnair. The co-operations process concerns all of the approximately 6100 Finnair employees in Finland. The discussions will start on May 25. Finnair estimates that if realized, the layoffs could be temporary for fixed period of time or until further notice based on resource needs. Similar measures are planned for Finnair employees outside Finland based on the local legislation.

Norwegian confirms that the restructuring is completed and that the state loan guarantee of in total NOK 3 billion has been approved. The company has now converted NOK 12.7 billion of debt to equity and laid a solid foundation for the future, although the next months will remain challenging.

“I want to thank everyone who has supported the company during this unprecedented crisis that has affected the entire the airline industry: The Government and Parliament; customers; employees: shareholders; leasing companies; creditors; bondholders, the travel industry and other Norwegian supporters. Now that we can access the state loan guarantee, we can continue to transform the company. Through this process, the belief in New Norwegian and the company’s strategy have been confirmed by shareholders, the market, bondholders, leasing companies, other creditors and lenders. Nevertheless, the months ahead will remain challenging and with a high degree of uncertainty for the industry. Norwegian will still need to collaborate closely with a number of creditors as the company currently has limited revenues,” said CEO Jacob Schram.

Since the end of 2018, Norwegian has taken significant actions to restructure its operations and return to profitability. The company was on the path to deliver a positive net profit in 2020, and this summer was set to be the strongest in the company’s history. Instead, the coronavirus outbreak and global travel restrictions has led to a substantial drop in demand.

The Company has seized this time as an opportunity to restructure and develop a new strategy and business plan – New Norwegian – for a strengthened airline to re-emerge when travel restrictions are lifted and demand returns.

“In addition to securing that the company survives this crisis, our goal has been that Norwegian should have a strong position in the future airline industry, with a clear direction and strategy. This will ensure sustainable operations and a structure that will be to the benefit of both shareholders, customers and colleagues,” says Schram.

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