Finnair Oyj - Company Announcement

Finnair Technical Services' cooperation negotiations ended

FINNAIR PLC                 STOCK EXCHANGE RELEASE               31 March 2011 
AT 15.10 

Finnair Technical Services' employee consultations, which began in
mid-February, were completed today. The consultation process concerned
Finnair's plans to discontinue unprofitable repair and overhaul, mainly offered
to external companies. 

The personnel in Finnair Technical Services will be reduced by 450 people, of
which just under 100 may be implemented through business transfers. The final
number of redundancies will depend significantly on how much of the required
reduction can be implemented through retirement and other voluntary solutions
agreed in the YT negotiations as well as through the implementation of
transfers of business. 

As part of the planned restructuring, Finnair Technical Services Oy and Finland
Transval Oy have today signed a letter of intent on a possible transfer of
business of Finnair Technical Services' Helsinki-Vantaa warehouse services.
Around 75 people work in these warehouse operations. In the letter of intent,
it has been agreed to continue negotiations on a possible transfer of business. 

During Finnair Technical Services' YT negotiations, on effort has been made in
cooperation with personnel representatives to find alternatives to
redundancies, and compensation for redundancies has also been discussed. 

“The negotiations have been exacting for all of the parties concerned.
Nevertheless, we cooperated well in the negotiations to build alternative
solutions, and we also discussed compensation for redundancies. Finnair
Technical Services' financial situation is difficult, but even so our goal has
been to offer those affected by the personnel reduction opportunities for
re-employment and support during the transition period,” says Kimmo Soini,
Managing Director of Finnair Technical Services. 

“Such a large personnel reduction and restructuring is regrettably unavoidable,
because base maintenance of aircraft, done mainly for external customers, is
deeply unprofitable. In addition, Finnair's own fleet is one of the most modern
in the world, so our own maintenance capacity requirement is lower than in the
past,” continues Soini. 

Further details on Finnair Technical Services' personnel reduction plan and the
number of redundancies will be announced in the spring, when interest in the
available alternative solutions becomes clear. Finnair Technical Services,
which specialises in aircraft and component repair and overhaul as well as in
engine and landing gear repair and overhaul, currently has 1,600 employees. 


Finnair Plc
Communications
31.3.2011

Further information:
Lasse Heinonen, Deputy CEO, Finnair Plc, tel. +358 9 818 4952
Kimmo Soini, Managing Director, Finnair Technical Services, tel. +358 9 818 6435
Finnair Media Desk tel. +358 9 818 4020