At the same time, shipping companies are required to keep two morning and two evening departures on the routes.
Viking Line has concluded its cooperation negotiations concerning land-based staff in Finland and Åland. Similar negotiations in Sweden were concluded in September, while negotiations with land-based staff in Estonia are expected to be completed in October.
The negotiations have involved the entire company’s land-based staff of about 570 people in Finland, Sweden, Estonia and Åland. The measures have led to a reorganization, cuts, centralization and streamlining of some functions as well as changes in some people’s job descriptions in order to better meet the company’s needs. Nearly 200 people have been affected by the negotiations, and staff cuts amounts to a number of 180.
About 70 people will be offered new jobs and contracts. In addition to the staff cuts, most of Viking Line’s land-based and shipboard staff will continue to be on part-time or full-time furlough.
As for shipboard staff, the Swedish-flagged VIKING CINDERELLA concluded negotiations in accordance with the Swedish Act on Co-Determination in the Workplace in October, with the result being a staff reduction of 76 jobs. Some of these people may be offered work in jobs that have changed. On the Estonian-flagged Viking XPRS, negotiations on staff reductions were concluded, with the result being a staff reduction of 56 jobs.
January–September 2020
- Sales €154.2 million (380.8)
- Operating revenue €16.7 million (0.2)
- Operating income €-35.2 million (17.5)
- Net financial items €-3.1 million (-3.6)
- Income before taxes €-38.3 million (13.9)
- Income after taxes €-30.8 million (11.1)
Q3, 2020
Sales €56.6 million (153.8)
Operating income totalled €-7.8 million (26.2)
- Q3 = most of the Group’s income is usually generated, this year negative
- A large percentage of the staff in Finland was furloughed.
- Travel restrictions, inconsistent communication from authorities affected travel and sales.
- Uninterrupted passenger and cargo service in spite of pandemic
- Liquidity at end of Q3 was stretched and remained at same level since then. Negotiations with financiers were conducted. On October 15, the Finnish Government issued State guarantees for additional loans totalling €38.7 million, which will secure liquidity.
- The Finnish Transport and Communication Agency (Traficom) launched a tender process for a public transport service provider on Turku–Mariehamn–Stockholm, Mariehamn–Kapellskär and Helsinki–Tallinn routes. Viking Line intends to take part in the tender process.
Future prospects unchanged: Income for the full financial year will be negative.
The Finnish Government approved the State of Finland’s guarantees on Viking Line´s liquidity loans up to €38.7 million. Using the liquidity loans, Viking Line aims to further secure its cash position and ensure business continuity during the exceptional situation caused by the coronavirus crisis. In addition to the Finnish State guarantees, commercial banks are guaranteeing €4.3 million.
The arrangement is compliant with EU State aid regulations.
The pandemic-related financial problems of shipping companies may lead to the sale of ferries and the permanent deterioration of Finland’s maritime connections.
Viking Line’s CEO Jan Hanses talks about overcapacity in the Baltic and Viking Line’s attempt to sell ferries (with interest from the Med).
Government communications receive harsh criticism from Tallink’s CEO Margus Schults. “The messy communication about the restrictions has been going on the whole summer. People do not dare to travel, even if it would be allowed and safe.”
The French Government is looking at possibilities to help Brittany Ferries: exemptions from social contributions, increased support for training, the revival of tourism, possible additional authorized Covid-19 aid and eventually adjustment of the terms of the loan guaranteed by the State.
To minimize the negative effects caused by the coronavirus situation, Viking Line will reorganize the land-based organization by adapting staff resources to the weaker demand and begin cooperation negotiations. The negotiations will affect all of the company’s land-based staff of about 570 people in Finland, Sweden, Estonia and Åland.
The new Sundbusserne route, which will have three daily departures from Copenhagen and Elsinore, respectively, starts on 17 July.
The route is intended as an extra experience when tourists choose to experience Copenhagen or Helsingborg during the holiday, but commuters are also welcome.
The route will be operated by the passenger-only LEA ELIZABETH, from Wednesdays to Sundays, during summer.
Viking Line Has Reached An Agreement To Defer Loan Payments Worth 14.9m
Viking Line Abp has reached an agreement with Finnvera Abp and Finska Exportkredit Ab on a loan payment deferral for the period July 1, 2020 – February 1, 2021 totalling EUR 14.9 million.
Payments fall due by January 10, 2025 at the latest – in other words, at the time final payment is due. The deferred loan payments may be paid in advance, and the interest rate and maturity of the loan remain unchanged. The payment of dividends during the maturity of the loan is conditional upon payment of the loan payments for which a deferral has been granted.
This loan payment deferral strengthens Viking Lines Abp’s liquidity situation, which is satisfactory at present.
Port Of Turku To Get Automooring System For Viking Line Ships
Cavotec’s MoorMaster arrived in Turku in early July. The vacuum-based automooring system will be installed at Viking Line’s berth by the end of the year and will be used by both VIKING GRACE and VIKING GLORY.