After the Norwegian government said no to further support for the airline Norwegian, the company announced on Monday evening that it would be forced to lay off an additional 1,600 employees.

”"This is a very sad day for everyone at Norwegian. I truly regret this to those affected, but unfortunately we see no other way out. The goal is to operate domestic routes in Norway with six aircraft and I assume that Norwegian will receive support for selected routes that the Ministry of Infrastructure has announced," says Norwegian's CEO Jacob Schram in a press release.

The announcement means that a number of customers with already booked tickets will be affected by cancelled flights.

”"We will do everything we can to offer affected customers alternative travel and I sincerely apologize for this situation. All affected customers will be notified directly from us," continues Jacob Schram.

At a press conference earlier in the day, following the Norwegian government's announcement, the airline CEO could not rule out that Norwegian is being driven into bankruptcy.

”"I can't rule out any scenarios. It's difficult, but we're continuing to work to find solutions so that we can get through this. I have no guarantees that we'll get through it, but I have faith and hope that we'll get through this too," he said at the time.

Neither he nor CFO Geir Karlsen wants to say what amount they have asked the Norwegian government for in support.

”We have presented a plan for how we could survive into 2022 and that included paying back the loan that we have already taken out,” says Geir Karlsen.

The disappointment over the government's refusal was great, especially in light of the Hungarian low-cost airline Wizz Air's entry into the Norwegian aviation market.

”"When you say no to Norwegian, you open the door to a Hungarian airline that the prime minister herself has said she will boycott," says Jacob Schram.

Norwegian shares traded down over 13 percent on Monday to 56 Norwegian krone, the lowest level ever.

Source: di.se