More Airlines Filing for Voluntary Administration and Firing Employees

Written and Published April 24, 2020

Following the news and updates around the COVID-19 pandemic, many airlines were forced to suspend or reduce their daily operations. We have the latest information from airlines and hotels all around the world. Unfortunately, many airlines are struggling to stay afloat during the pandemic. First, we saw the news that Virgin Australia had to file for voluntary administration, being the first large airline to fall under the pressure of the COVID-19 pandemic. Now, we are seeing more airlines taking the same step and some even filing for bankruptcy.

South African Airways firing all employees

South African Airways suffered a series of financial setbacks over the last few years, with the latest setback being the biggest. The government rejected a request for restructuring the airline for an additional $526 million. The carrier has suspended all commercial flights due to the COVID-19 pandemic. Unfortunately, they are also planning to lay off the entire workforce. South African Airways is offering severance deals to all 4,700 employees in which they will receive one month of pay, plus one week of pay for every year of service.

More Airlines Filing for Voluntary Administration and Firing Employees

Air Mauritius Files for Voluntary Administration

Air Mauritius published an official statement on their Facebook page in which they announced that the carrier is entering voluntary administration. The carrier is unable to meet the current and future financial obligations because of the COVID-19 pandemic, which they cited as the main reason for voluntary administration.

From the official announcement:
"Unfortunately, travel restrictions and the closure of borders in all our markets and cessation of all international and domestic flights in an unprecedented crisis, has led to a complete erosion of the company's revenue base. Furthermore, there is uncertainty as to when international air traffic will resume and all indications tend to show that normal activities will not pick up until late 2020."

Norwegian's subsidiaries in Denmark and Sweden go bankrupt

Norwegian's Swedish and Danish pilot and cabin crew companies have filed for bankruptcy, according to an official press statement from Norwegian. The carrier said that the financial support packages offered by the Swedish and Danish government had not been enough to keep the subsidiaries that employ pilots and cabin crew in the two countries afloat. Norwegian also announced they will be ending staffing deals with the OSM Aviation, which provides the carrier with crew based in Spain, UK, Finland, Sweden, and the US.

From the official press release:
“Our pilots and cabin crew are the core of our business and they have done a fantastic job for many years. It is heart-breaking that our Swedish and Danish pilot and cabin crew subsidiaries now are forced to file for bankruptcy, and I'm truly sorry for the consequences this will have for our colleagues. We are working around the clock to get through this crisis and to return as a stronger Norwegian with the goal of bringing as many colleagues back in the air as possible.” said CEO of Norwegian, Jacob Schram

The Norway based carrier said that 1,571 pilots and 3,134 cabin crew will be affected by the move. Unfortunately, only 700 pilots and 1,300 cabin crew based in Norway, France, and Italy are being kept on.