4,000 pilots and cabin crew members of Norwegian Air crew subsidiaries file for bankruptcy

ONE of the airlines that struggled prior to the outbreak of Covid-19, Norwegian Air Shuttle, was forced to close down four subsidiary companies on April 20, 2020, as almost all of Norwegian’s flight operations have been cancelled.

The Oslo-based airline had four subsidiary companies in Denmark and Sweden, where the low-cost carrier employed pilots and cabin crew members. Despite Norwegian’s best efforts to reduce costs, the companies have all filed for bankruptcy on April 20, 2020.

“The Board of these companies are left with no choice but to apply for bankruptcy,” was outlined in the company’s press release.

The airline said its decision was, among other reasons, enforced by the “lack of significant financial support from the Swedish and Danish governments.” The Norwegian government had guaranteed support for the airline if it met certain requirements. On March 24, 2020, the company fulfilled the initial requirements and received the first instalment of $27.4 million (NOK 300 million).