A significant agreement reached on Finnair pilots' efficiency measures


Finnair and the Finnish Airline Pilots' Association SLL, which represents the
company's pilots, have reached an agreement on efficiency measures to
complement the pilots' collective agreement. 

"This is an historic agreement, which demonstrates a significant acceptance of
responsibility on the part of the pilots in the difficult situation that
Finnair and the entire sector is facing. It is encouraging that through this
agreement we have achieved permanent structural changes, not only short-term
savings," says Finnair's President & CEO Mika Vehviläinen. 

In November, National Conciliator Esa Lonka established a working group whose
goal was to find, in addition to a five per cent wage reduction, 13 per cent
savings in pilots' unit costs. The SLL's council accepted a working group
proposal by which the pilots' contribution of around 20 million euros to the
savings target for personnel costs would be fulfilled. 
 
"The agreement reached reflects the current economic situation. The decision on
cuts and wage reductions was not easy for us. Through the agreement reached, we
pilots have shown our commitment to Finnair and also that we accept our
responsibility for the company's future," states SLL Chairman Kristian Rintala. 

The cost savings will arise from, among other things, changes to improve
efficiency, a gradual rise in the retirement age and changes to free day
arrangements as well as a lengthening of the summer vacation period, which will
improve crew utilisation. The changes will increase the pilots' average flying
hours. 

"Surviving in the current hard competitive climate among airlines requires
above all cost-competitiveness, which is the objective of the 200 million euro
savings programme. Changing operating practices throughout the organisation and
achieving our common goals also requires the contribution of personnel. Here we
have a clear example of a group in which the signs of change in the environment
have been recognised and understood," says Vehviläinen. 

Finnair Plc
Finnish Air Line Pilots' Association (SLL)

Further information: Taneli Hassinen, VP Financial Communications and Investor
Relations, tel. +358 9 818 4976