Finnair Oyj - Company Announcement

FINNAIR PLANS STRUCTURAL CHANGES IN TECHNICAL SERVICES SUBSIDIARIES

FINNAIR PLC                     STOCK EXCHANGE RELEASE               4.2.2011  
   0910 <b style="mso-bidi-font-weight: normal">FINNAIR PLANS STRUCTURAL CHANGES IN
TECHNICAL SERVICES SUBSIDIARIES 



Structural changes are planned in the Finnair Group subsidiaries Finnair
Technical Services Oy and Finnair Engine Services Oy, which focus on aircraft
and component maintenance. "International competition in aircraft maintenance activity is continually
intensifying. Our own competitiveness has weakened as costs have grown and we
have had to consider a complete restructuring," says Finnair's Senior Vice
President, Technical Services Kimmo Soini. "Finnair has implemented a comprehensive fleet renewal and the company's
present fleet is modern. A significant proportion of Finnair's aircraft and
component maintenance and repair activities would in future consist of services
offered to companies outside the Finnair Group. In market-priced services, our
cost-competitiveness in the field of aircraft heavy maintenance is inadequate."



Finnair Technical Services' operations cover daily and short-term maintenance,
i.e. line maintenance, long-term heavy maintenance, and engine and component
support. "We plan to discontinue mainly external, unprofitable aircraft base maintenance
work. Our objective is to focus on quality, cost-effective technical support of
Finnair's own fleet. Safeguarding and improving competitiveness is also
essential in other areas of Finnair Technical Services," explains Soini. 



Statutory negotiations under the Act on Cooperation Within Undertakings,
covering all of the companies' 1,600 employees, will be initiated. The
personnel reduction requirement arising from the planned changes amounts to 450
jobs. "All of Finnair's technical services operations will be adjusted to the new
situation. The clear reduction in the amount of work will also substantially
reduce the need for labour. We will make every effort to use the most flexible
possible means in reducing personnel, but most probably we cannot avoid
significant redundancies."



Finnair Plc

Communications

4.2.2011



Further information:



Lasse Heinonen, Deputy Chief Executive Officer, Finnair Plc, tel. +358 9 818
4951 

Kimmo Soini, Senior Vice President, Finnair Technical Services Ltd. and Finnair
Engine Services Ltd. 
tel. +358 9 818 6435