FINNAIR PLC INVESTOR NEWS 23.1.2009 Demands by Finnair pilots lead to labour dispute The Finnish Airline Pilots' Association (SLL) representing Finnair pilots has decided to initiate a labour dispute to attain its collective agreement on terms of employment negotiation aims. The action of the dispute will take the form of an overtime ban. This ban might lead to cancellations of Finnair flights as soon as tomorrow. In addition, the pilots have given notification of their intention to carry out strikes that will halt Finnair flights almost completely. These strikes are scheduled for 11.2, 13.2, 16.2, 18.2 and 20.2. The biggest points of contention in the talks are related to the pension arrangements for Finnair pilots, as well as the management's power of decision about fleet deployment and optimization of capacity. In addition to wage demands, the SLL has various demands related to shift arrangements, including more rest days, which would lead to an increase in the number of pilots without a corresponding increase in traffic. If implemented, the demands would result in a significant increase in costs. As a result of a six-month deal made with the pilots last summer, a 3.9 per cent wage increase was arranged. In addition, pilots automatically receive an average service-related annual pay increase of 4.5 per cent, so in the last year they have received an annual total increase of over 9 per cent. Now pilots are demanding an increase of four per cent on top of the previous agreed correction and the annual automatic increase, while the cost effect of the other demands would amount to 7 per cent annually. As an accumulated result, total pilot staff costs would increase by over 15 per cent annually. Finnair employs 800 pilots, which is 8 per cent of the Group's total work force. Pilots' staff costs represent 26 per cent of the total, or about 550 million euros. The remaining wage bill is shared between 8,600 Finnair personnel. Finnair's aim in terms of employment negotiations has been to increase productivity especially on long haul flights. The intention is to develop salary arrangements in such a way that earnings are related to the amount of work carried out. The intention is also to bring pilots' pension benefits in line with those of other staff. The retirement age would be raised from 58 to 60, as is the case with the majority of other European airlines. The officially-approved maximum retirement age for commercial airline pilots is 65. Finnair Plc Communications 23.1.2009