Avinor announces restructuring plan

Up to 80 jobs are to go in an imminnent restructuring at Norway’s air navigation services provider Avinor.

The business said around 80 full-time equivalents (FTE) could be made redundant in streamlining of operations in staff and support functions. Further reductions in other parts of Avinor are also anticipated.

Avinor announced last year that the company is implementing a restructuring programme in the 2015-2018 period. The programme will reduce annual operating costs by 600 MNOK (US$ 67.8 million) starting in 2018. For the period 2015-2018, the goal is an overall cost reduction of NOK 1.5 billion.

In 2015, Avinor cut costs by NOK 150 million, which was according to plan. In the current year, the company will save NOK 300 million.

“Avinor’s mission is to develop and operate a safe, efficient and sustainable aviation system throughout Norway. These improvements help strengthening the competitiveness of aviation and will benefit both customers and society at large,” said Avinor CEO Dag Falk-Petersen.

Avinor management said it has adopted a new organisation of staff and support functions, as well as a new overall organisation. In this initial part of the process, just under 300 FTEs have been included in the assessments. Of these, potential redundancies of about 80 FTEs have been identified.

“The goal is to ensure clearer distribution of responsibilities and more effective support and follow-up of operations than is the case with the current model,” said Falk-Petersen.

The reorganisation, with associated redundancy management, will mainly take place before April 30 for most areas. Downsizing will be achieved as far as possible through natural attrition and voluntary solutions, although Avinor cannot rule out terminations.

Avinor said it will identify additional efficiency measures through other projects in the restructuring process. Further adjustments of staff are therefore expected.

“It is difficult to conduct such extensive restructuring measures while at the same time undertaking large capacity-increasing projects. The terminal expansions at Oslo Airport and Bergen Airport Flesland, as well as the remote tower project, place substantial demand on the organisation. We aim to ensure that we will still be able to deliver on the goals we have set for this programme,” said Falk-Petersen.

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