Finnair signed a letter of intent: StaffPoint and GWS to become shareholders in a joint venture focused on regional flying

Finnair has signed a letter of intent with StaffPoint Holding Ltd and G.W.
Sohlberg Ltd., in accordance with which Flybe UK Ltd’s 60 % ownership of Flybe
Nordic venture will be transferred to StaffPoint and GWS. The sale of the shares
is conditional upon approval being received from the Finnish competition
authorities. Upon completion of the sale, StaffPoint’s ownership in the joint
venture would be 45 %, GWS’s 15 % and Finnair’s 40 %.

Flights operated by Flybe Finland will continue normally.

- We are pleased that we will have Finnish companies StaffPoint and GWS as
partners. When the deal is realized, Flybe Finland and its board of directors
will start jointly developing a business model for the company and improving the
effectiveness and profitability of regional flying, says Pekka Vauramo, Finnair
CEO.

- We have been analyzing this industry for some time, and we see potential in
it. The industry is growing, and it is labor intensive. Air traffic has a strong
positive impact on the Finnish economy and supports Finnish employment. With our
experience in human resources, we want to play a role in the future of the
industry. We employ over 14 000 people every year, and we believe that as
shareholders we can add value to Flybe Finland, says Mika Kiljunen, CEO of
StaffPoint Group.

The transaction price is the previously announced 1 euro.

StaffPoint Ltd offers unique capabilities and in combining staffing and
recruiting expertise, coaching, training and HR software.

G.W. Sohlberg Ltd, founded in 1876, is a Finnish family owned company, which
invests in the leading companies of their field.

Finnair and Flybe UK Ltd announced on November 12, 2014 that the shares of Flybe
Nordic held by Flybe UK would be sold to a new majority shareholder, or to
Finnair. Finnair communicated that its goal is to find a new majority
shareholder for Flybe Nordic. Finnair’s aim has been to find solutions that
would enable the development of regional flying in a financially sustainable
way.

The ownership change of Flybe Nordic does not have any immediate financial
impact on Finnair. Finnair has previously written down the value of its Flybe
Nordic AB shares.

Finnair’s balance sheet includes a 9.9 million euro subordinated loan issued to
Flybe Finland in 2011, and it also has advance payments and other operational
receivables from Flybe Finland. As Flybe Finland's operations require further
restructuring, it is possible that a part of these receivables will be
uncollectable. Finnair continuously monitors the valuation of various financial
accounts related to the Flybe Finland cooperation. Finnair estimates that the
resulting financial impacts will not exceed -35 million euros. If needed,
Finnair is also prepared to give working capital financing to Flybe Finland.
Finnair now estimates that the potential financial impacts will be specified so
that the company can inform about those in more detail in connection with its
interim review on February 11, 2015.
Further information:
Finnair communications, tel. +358 9 818 4020, comms(a)finnair.com

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