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NORWEGIAN

Pilots and cabin crew won over Norwegian

Asker and Bærum District Court has given pilots and cabin crew a legal victory by upholding their claim that Norwegian Air Shuttle is their true employer.

Pilots and cabin crew won over Norwegian
The union Parat hailed the court's decision. Photo: Jon Olav Nesvold / NTB scanpix
Seven pilots and seven cabin crew sued the airline because they believe that the parent company Norwegian Air Shuttle (NAS) – and not one of its subsidiaries – is their actual employer.
 
The employees also contended that the company has entered illegal labour contracts.
 
The court verdict sided with their claim and ruled that NAS is the employees’ true employer and that Norwegian has engaged in illegal hiring practises.
 
Hans-Erik Skjæggerud of the Parat union says the decision is very important for the future organization of the Norwegian labour market.
 
“Norwegian has repeatedly tried to evade responsibility as an employer and one of the most egregious examples we saw was during the pilot strike last year, when the company again moved employees to newly created subsidiaries in an attempt to avoid all of the serious responsibilities employers have for their employees,” he said. 
 
“The verdict puts an end to business models which are solely intended to undermine workers' rights and prevent the protections of the Working Environment Act [arbeidsmiljøloven],” he said.
 
In court, the airline argued that employer responsibility is tied to employment contracts and that the transfer to a subsidiary was never legally contested.
 
“We need time to read the judgement and consider whether or not to appeal,” Norwegian’s communications director, Anne-Sissel Skånvik, told business news site E24.

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AIRLINE

Airline Norwegian posts 15 billion kroner loss after nightmare 2020

Low cost airline Norwegian has registered a loss of 14.9 billion Norwegian kroner for 2020, a year in which the company saw a drastic reduction in passenger numbers and was on the brink of bankruptcy.

A file photo of a Norwegian Air Shuttle plane in Finland.
A file photo of a Norwegian Air Shuttle plane in Finland. Heikki Saukkomaa / Lehtikuva / AFP

Low cost airline Norwegian has registered a loss of 14.9 billion Norwegian kroner for 2020, a year in which the company saw a drastic reduction in passenger numbers and was on the brink of bankruptcy.

The company published its annual results on Friday, revealing the huge operating loss.

Norwegian’s 2019 result, a loss of around 1.7 billion kroner, had put the company in a difficult position even prior to the outbreak of the Covid-19 pandemic.

The coronavirus outbreak and its consequent travel restrictions reduced the company’s passenger numbers to 6.9 million in 2020. That is 29 million fewer than in 2019.

Not all of the loss is due to fewer passengers. Around half of the company’s devaluation is attributed to a depreciation of the value of its aircraft fleet, news wire Ritzau reports.

“2020 was an exceptionally demanding year for air travel and for Norwegian,” CEO Jacob Schram said in a statement on the annual results.

“In light of that, the result for the fourth quarter (of 2020) is not surprising. Unfortunately, the majority of our employees are furloughed and many have lost their jobs – in part because of the closure of long distance services,” he added.

The company was already in debt prior to the pandemic and is now under bankruptcy protection in Ireland and is undergoing similar process in Norway.

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