DFDS is to close an unprofitable route between Norway and England on 1 September 2008. At the same time DFDS Seaways’ organisation will be changed and reduced by around 340 jobs at sea and on land. The expected savings will amount to around DKK 60 million a year from 2009.

 

As previous information has already established, DFDS’ business unit Passenger Shipping has had an unsatisfactory trend in recent years. Against this background, an analysis of operations was carried out earlier in the year with the aim of creating an improvement plan, which can ensure the business unit has a more satisfactory economic development.

 

Phase 1 of this improvement plan has now finished and includes the following measures:

 

1. The route between Bergen-Haugesund-Stavanger and Newcastle will close on 1 September 2008. Despite great efforts from the crew and the land-based employees it has not been able to live up to the targets of a profitable result. Operations on the route will remain unchanged during the summer season. The closure affects up to 270 jobs onboard.

 

2. The closure of the route and analyses of the business unit further provide the opportunity for bringing in a new, flatter and more focused organisation at DFDS Seaways. The new organisation means that the country and head office organisations will be reduced by a total of around 70 positions.

 

"Even though DFDS is prepared to help those made redundant this will be a testing and difficult process for the affected employees. However, these actions are necessary measures in order to turn around DFDS Seaways’ economy and to create long-term, sustainable development," says Niels Smedegaard, CEO of DFDS A/S.

 

Operations on the Bergen route have been running at a loss. The closure of the route and savings in the land-based organisation are expected as soon as in 2008 to offset the costs associated with closing the route and changes to the land-based organisation. The improvement plan is not therefore expected to show significant changes to the expectations for profits for 2008.

 

The long-term improvement is expected to amount to some DKK 60 million a year, from 2009 onwards.

 

QUEEN OF SCANDINAVIA, which sails on the Bergen route, will be sold or chartered out. The effect of this on the accounts for 2008 is not known at the present time.

 

Phase 2 of the plan will commence at the beginning of June and will focus on improving earnings on the other routes. This work will extend over the coming months.

 

Further information: CEO Niels Smedegaard, tel + 45 33 42 34 00

or Communications Manager Gert Jakobsen, tel + 45 24 40 00 43.

 

Last updated 27/05/2008