Three Norwegian Air staffing supplier subsidiaries of OSM Aviation have gone bankrupt. The bankruptcy affects 571 employees, who were pilots and flight attendants for the airline. The subsidiaries are located in Finland and Sweden.
The staffing companies (subsidiaries of OSM Aviation) affected are:
- OSM Aviation Sweden (Sweden),
- Norwegian FI OY, (Finland), and
- OSM Aviation Finland (Finland).
What is OSM Aviation?
OSM Aviation is a staffing and education group that has delivered pilots and flight attendants to Norwegian Air.
571 pilots and flight attendants in Finland and Sweden are affected by the bankruptcy.
At this time, employees in Spain, the USA, UK, Hong Kong, Singapore, and India are not affected.
Espen Høiby, CEO of the parent company OSM Aviation, said,
“These are subsidiaries. One in Sweden and two in Finland. The reason for this is the lack of payments from customers”.
“This is, above all, deeply regrettable to those of our employees who are now affected. They have done a fantastic job for us and at Norwegian over a number of years, and we now work around the clock so that on the other side of this we can come back to offer more jobs and career opportunities for flying personnel in the future”.
Previous staffing suppliers at Norwegian Air
Other companies that Norwegian Air previously contracted with for staffing services filed for bankruptcy in April:
- Norwegian Pilot Services Denmark ApS,
- Pilot Services Sweden AB,
- Norwegian Cabin Services Denmark ApS, and
- Norwegian Air Resources Denmark LH ApS.
At that time, Norwegian Air entered a further collaboration with Risworth and OSM Aviation, which previously supplied pilots and cabin crew to the airline only in the UK, Spain, Finland, the USA, and Sweden.
No money for UK crew salaries
In April, 1,400 pilots and flight attendants in the UK received a notification:
Neither Norwegian Air nor the OSM staffing agency had the means to pay salaries.
But, how did the companies get away with not paying salaries?
According to the Norwegian newspaper E24 , it appears that Norwegian Air must have used Force Majeure, a clause that resolves both parties to the contract under extraordinary circumstances, to dissolve the agreement with OSM in the UK.
Adverse airline business events appear to appear almost daily since the coronavirus pandemic systematically began threatening the very existence of airlines worldwide. If you have any comments or questions as to the Norwegian Air staffing supplier OSM Aviation subsidiaries going bankrupt, you can contact us here.
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