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DFDS Seaways loss-making passenger service Newcastle to Norway to be closed 1st September 2008
In 2006 DFDS Seaways took over the loss-making service between Newcastle and Bergen-Haugesund-Stavanger in Norway.
"The target was to turn around the negative development. In 2007 we changed tonnage on the route, we changed our crewing on board as well as our service and onboard concepts to support delivery of a positive result.
"The result in 2007 fell well short of expectation and as reported in last weeks DFDS Seaways' Quarter 1 2008 results, the current financial development has fallen below the level required to continue operating the service. Furthermore, dramatically increasing oil prices, downward price pressure from over capacity in the travel market place and the current economic slowdown are burdening the service. Consequently, we have taken the difficult decision to close the service from 1 September after the summer season," says John Crummie, UK managing director for DFDS Seaways.
The decision affects approximately 270 jobs on the ship ms Queen of Scandinavia. The employees are mainly from the UK and Denmark, and a number of the crew members are on time-limited contracts.
Furthermore, it will affect approximately 70 jobs in the land based services in Denmark, Norway and UK. "This situation will naturally be handled in a caring and respectful fashion towards our employees and recognising different national procedures. In the UK we are starting the dialogue with the employee representatives to clarify the situation," says John Crummie.
"We will continue with a full service until 1 September 2008, and we hope that this gives enough time for our valued customers and trade partners to adapt to the new situation. We have had support from a whole variety of trade partners, travel agents, tour operators, tourist boards and online partners in helping to promote the route and we are very appreciative of their support and apologise for the inconvenience linked to the closure.
"We have now created a platform to concentrate resources on improving the financial results and development of our routes to Holland from Newcastle, Denmark from Harwich and within Scandinavia and we look forward to working with the trade to grow sales in the future," says John Crummie.
"The target was to turn around the negative development. In 2007 we changed tonnage on the route, we changed our crewing on board as well as our service and onboard concepts to support delivery of a positive result.
"The result in 2007 fell well short of expectation and as reported in last weeks DFDS Seaways' Quarter 1 2008 results, the current financial development has fallen below the level required to continue operating the service. Furthermore, dramatically increasing oil prices, downward price pressure from over capacity in the travel market place and the current economic slowdown are burdening the service. Consequently, we have taken the difficult decision to close the service from 1 September after the summer season," says John Crummie, UK managing director for DFDS Seaways.
The decision affects approximately 270 jobs on the ship ms Queen of Scandinavia. The employees are mainly from the UK and Denmark, and a number of the crew members are on time-limited contracts.
Furthermore, it will affect approximately 70 jobs in the land based services in Denmark, Norway and UK. "This situation will naturally be handled in a caring and respectful fashion towards our employees and recognising different national procedures. In the UK we are starting the dialogue with the employee representatives to clarify the situation," says John Crummie.
"We will continue with a full service until 1 September 2008, and we hope that this gives enough time for our valued customers and trade partners to adapt to the new situation. We have had support from a whole variety of trade partners, travel agents, tour operators, tourist boards and online partners in helping to promote the route and we are very appreciative of their support and apologise for the inconvenience linked to the closure.
"We have now created a platform to concentrate resources on improving the financial results and development of our routes to Holland from Newcastle, Denmark from Harwich and within Scandinavia and we look forward to working with the trade to grow sales in the future," says John Crummie.
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