Finnair Oyj - Company Announcement

Finnair’s catering operations not to be sold to LSG Sky Chefs

FINNAIR PLC        STOCK EXCHANGE RELEASE         May, 31 2012 at 9:30 EET

Finnair's catering operations will not be sold to LSG Sky Chefs, as previously
announced. 

The companies signed a Memorandum of Understanding about the deal March 12,
2012. The acquisition was subject to the approval of Lufthansa Board of
Directors and it was expected to be closed by the end of first half of 2012.
The Lufthansa Board decided not to approve LSG Sky Chef's acquisition plans due
to an investment freeze at Lufthansa. "LSG Sky Chefs has informed us that due to investment freeze the Lufthansa
Board has not approved their acquisition of our catering businesses," says
Anssi Komulainen, Senior Vice President of Customer Service at Finnair. "This
is naturally a disappointment both to LSG Sky Chefs and to us as we had worked
hard to make the co-operation work for the benefit of both parties."

“We will now focus on improving the productivity of the Finnair catering
businesses," Komulainen continues. "We believe there is a lot we can do to
achieve better profitability and improve the customer experience. At the same
time, we will continue to evaluate other arrangement alternatives."

Finnair is a client of LSG Sky Chef in many other airports and this customer
relationship will continue. 

In 2011, the Finnair catering business in question had net sales of appr. 80
million euro. Today's news does not impact the company's announced cost saving
targets or timing. The target of Finnair's cost saving program is to decrease
the annual costs of Finnair by 140 million euros by 2014. 

Further information: Finnair Media Desk, tel. +358 9 818 4020,
comms(at)finnair.com.