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You can find the current article at its original source at https://www.theguardian.com/business/2020/mar/11/norwegian-air-shuttle-crew-were-shut-out-of-hotel-over-cash-fears
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Norwegian Air Shuttle crew were shut out of hotel over cash fears | Norwegian Air Shuttle crew were shut out of hotel over cash fears |
(32 minutes later) | |
Gatwick hotel asked for upfront payment from lossmaking low-cost carrier | Gatwick hotel asked for upfront payment from lossmaking low-cost carrier |
Crew members from the lossmaking low-cost airline Norwegian Air Shuttle were refused access to their rooms at an airport hotel until advance payment was received from the company. | Crew members from the lossmaking low-cost airline Norwegian Air Shuttle were refused access to their rooms at an airport hotel until advance payment was received from the company. |
Copthorne hotel at London Gatwick delayed staff accessing rooms on Monday, the Guardian has learned. | |
In a letter to airline employees seen by the Guardian, the hotel said: “We have requested your company, Norwegian Airlines, to supply us with advance payment for your accommodation.” | In a letter to airline employees seen by the Guardian, the hotel said: “We have requested your company, Norwegian Airlines, to supply us with advance payment for your accommodation.” |
The letter, written by the front office manager, is dated 9 March. The Guardian understands the hotel is no longer demanding that room bills are settled in advance. | |
The carrier has had a turbulent few months, with attempts at an overhaul of its finances hit by the outbreak of coronavirus and a 22% fall in passenger numbers in February. | |
Airlines have been hit hard by travel restrictions due to the spread of the virus, with many implementing emergency cost-cutting measures and slashing flights. | Airlines have been hit hard by travel restrictions due to the spread of the virus, with many implementing emergency cost-cutting measures and slashing flights. |
The owners of Flybe said the coronavirus outbreak was the final blow that pushed Europe’s largest regional airline into administration this month. | |
Norwegian, the third-largest low-cost carrier in Europe behind easyJet and Ryanair, has cancelled 3,000 flights between mid-March and mid-June and has temporarily laid off staff. | Norwegian, the third-largest low-cost carrier in Europe behind easyJet and Ryanair, has cancelled 3,000 flights between mid-March and mid-June and has temporarily laid off staff. |
It posted an operating loss of £340m in its 2018 financial results, and launched an emergency cash call at the end of January, aiming to raise 3bn krone (£240m) from its shareholders, after IAG, which owns British Airways, ruled out a takeover. | It posted an operating loss of £340m in its 2018 financial results, and launched an emergency cash call at the end of January, aiming to raise 3bn krone (£240m) from its shareholders, after IAG, which owns British Airways, ruled out a takeover. |
Norwegian’s shares have slumped by 74% since the start of the coronavirus in China and were 15% lower on Wednesday afternoon, the lowest level since 2005. | Norwegian’s shares have slumped by 74% since the start of the coronavirus in China and were 15% lower on Wednesday afternoon, the lowest level since 2005. |
The airline said: “We do not discuss commercially sensitive information regarding our suppliers. This is a standalone case which has now been resolved.” |
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