Time to change management in Norwegian before they run the company into a blind alley it can't be backed out of
More of the fictive crew rental straw companies that Norwegian created are being declared bankrupt. Reasons given; client (= Norwegian) won't pay their bills. And this time it is really closing in on them being in their neighbouring countries Denmark and Sweden.
This is going to end in tears. The management of Norwegian haven't solved neither the company finances nor its problems. They have just pushed them into the future. No other airline have tried to solve their CoVid19 problems by abandoning their legal responsibilities towards their employees. Whether they where hired directly or through fictive agencies. Fictive = the agency only supply staff to 1 company which is also the owner (or part owner) of said employment agency.
Others have tried to abandoned their crew at other times. But those companies always had the financial strength to pay themselves out of trouble when it went legally tits up. Norwegian do not have the money to pay out if different countries start taking possession of their planes and other activa as security for outstanding debts.
Sometime doing nothing is not sitting still but going backwards. Only ostriches stick their heads in the sand and think problems goes away by ignoring them. Norwegian management haven't even tried to negotiate or outline a possible positive future for some of their international staff. They have behaved like they where a small local regional within 1 country and not a intercontinental world airline.
There will come a time when the current management of Norwegian will have taken so many strategically bad choices based on urgent needs that the airline can't come back.
They probably don't really care that much. For them its a bet with either zero or positive outcome. None of them, or the board, are large share owners. Neither do they or the chairman have a long background within aviation so can easily pivot to something else or go back to consultancy in a different field.
Keep it going as long as it pays their salaries. Haven't seen anything about that they have been seriously cut for the short term to aid the long term goal of survival. Rather top management salaries, bonuses and board remunerations are proposed fatter than ever.
This is going to end in tears. The management of Norwegian haven't solved neither the company finances nor its problems. They have just pushed them into the future. No other airline have tried to solve their CoVid19 problems by abandoning their legal responsibilities towards their employees. Whether they where hired directly or through fictive agencies. Fictive = the agency only supply staff to 1 company which is also the owner (or part owner) of said employment agency.
Others have tried to abandoned their crew at other times. But those companies always had the financial strength to pay themselves out of trouble when it went legally tits up. Norwegian do not have the money to pay out if different countries start taking possession of their planes and other activa as security for outstanding debts.
Sometime doing nothing is not sitting still but going backwards. Only ostriches stick their heads in the sand and think problems goes away by ignoring them. Norwegian management haven't even tried to negotiate or outline a possible positive future for some of their international staff. They have behaved like they where a small local regional within 1 country and not a intercontinental world airline.
There will come a time when the current management of Norwegian will have taken so many strategically bad choices based on urgent needs that the airline can't come back.
They probably don't really care that much. For them its a bet with either zero or positive outcome. None of them, or the board, are large share owners. Neither do they or the chairman have a long background within aviation so can easily pivot to something else or go back to consultancy in a different field.
Keep it going as long as it pays their salaries. Haven't seen anything about that they have been seriously cut for the short term to aid the long term goal of survival. Rather top management salaries, bonuses and board remunerations are proposed fatter than ever.
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