Norwegian Air warned pilots there’s no cash to pay salary

In a letter to workers, the airline confirmed it would not be able to pay staff salaries on the coming payday on the 25th of April. Around 1,000 pilots and cabin crew based in the UK were already prepared to have their pay cut and face potential redundancies. It’s unlikely these workers expected such a significant reduction, although this doesn’t necessarily mean they won’t get paid in the end.

Pilots were last night warned they face a pay freeze – and will rely on the government’s job retention scheme plan for any salary.

There is no magic pot in the bank. Norwegian is in the same situation as Virgin Atlantic, Air France and Lufthansa in needing bail-outs to survive.

The company’s entire fleet, across different subsidiaries, is believed to be hit – around 1,500 pilots and 3000 cabin crew.

Norwegian Air was in trouble before the outbreak of coronavirus. The airline, Europe’s third-largest budget carrier after Ryanair and easyJet, recorded an operating loss of £340m ($426m) in 2018. This resulted in an emergency cash call and an attempt to overhaul its finances.

The airline’s crew management company OSM Aviation UK HR said it would be applying for the UK government’s furlough scheme when it opens on the 20th of April. This would mean the UK government would cover 80% of staff wages. However, in the meantime, the airline will not be able to pay staff.