YT-NEGOTIATIONS ON LAY-OFFS TO BEGIN IN FINNAIR TECHNICAL SERVICES


FINNAIR PLC   STOCK EXCHANGE RELEASE   20.3.2009   14:35

Statutory consultative negotiations under the Act on Co-Determination within
Undertakings (YT negotiations) will be initiated in Finnair Technical Services
on the subject of lay-offs affecting all employees. When implemented, the
lay-offs are expected to range from two weeks to three months, depending on the
work situation of the different functions. The objective of the lay-offs is to
cut personnel costs by around seven million euros. The programme is part of
previously announced savings targets for the whole Group. 

“Finnair Technical Services' financial situation has weakened more strongly
than expected as a result of cuts in traffic by both Finnair and customer
airlines from outside the Group. We have to find effective savings measures
quickly in order to safeguard operational continuity. Without adjustment
measures, Finnair Technical Services will make a clearly loss-making result
this year,” says SVP Finnair Technical Services Kimmo Soini. 

A decision on the 50-million-euro cost-cutting programme initiated last summer
and the YT negotiations connected to it was reached in January 2009. At the
beginning of February the decision was made to initiate a further programme to
achieve the same savings. Measures to achieve a total savings target of 100
million euros will therefore be taken over the current year. 
 
In addition to the Technical Services' YT negotiations, YT negotiations are
also under way in the Flight Operations Division, the Commercial Division,
Finnair Catering, the ground handling company Northport, and the travel agency
Area. The combined cost-cutting target is nearly 20 million euros, of which
part is included in savings targets announced earlier. 

Finnair Plc
Communications
20.3.2009

Further information:
Kimmo Soini, SVP Finnair Technical Services, tel. +358 9 818 6435.
Taneli Hassinen, VP, Financial Communications, tel. +355 40 504 3321.