Norwegian Air Shuttle AS operations slowed today with more than 35,000 passengers affected by a pilot strike over employment terms. The shares fell.
The walkout, which began Feb. 28 and follows three months of talks, was called by the Norwegian Pilot Union over concern that working conditions in Norway, Denmark and Sweden will deteriorate as the airline seeks to cut costs. Attempts at dialogue have been unsuccessful, Norwegian Air said yesterday, when it announced the cancellation of all domestic flights in Norway, Sweden and Denmark, as well as flights between those countries.
“Norwegian had proposed several essential cost reductions to ensure a sustainable company and secure jobs,” Norwegian Air said in a statement. The unions “did not meet these criteria,” the carrier said.
Norwegian Air sank 3.9 percent to 207.80 kroner at 12:10 p.m. in Oslo. The stock has declined 22 percent over the past year, valuing the Fornebu, Norway-based airline at 7.27 billion kroner ($940 million).
Seventy pilots walked out on Friday and the total reached 650 today, according to trade union Parat. Some flights to the U.K., Spain, and Finland are operating as usual. The airline’s long-haul routes from Scandinavia and England to the U.S. and Asia will operate as normal as they are beyond the scope of the dispute, the company said.
The Scandinavian low-cost airline reported its first annual net loss in 2014 in at least eight years, as it pursues one of the industry’s most ambitious growth plans. It’s starting long- haul services by purchasing Boeing Co. 787 planes while swelling its European fleet.
This article was written by Kari Lundgren from Bloomberg and was legally licensed through the NewsCred publisher network.