Finnair Oyj - Company Announcement

Open dialogue needed on Finnair future and ownership structure - major investment decisions ahead

Finnair Plc      Stock Exchange Release     27 March 2014 at 3.08 p.m EET

Finnair's Annual General Meeting began today, 27 March 2014, at 3:00 p.m.
Finnish time in Helsinki, Finland. Klaus Heinemann, Chairman of the Finnair
Board of Directors says in his opening statement that the Finnair Board had
during the past year considered how Finnair should be taken forward and how the
future of Finnish aviation and the hub status of Helsinki Airport could be
secured also in the coming years. Heinemann also expresses strong support for
the transformation and cost saving plans Finnair announced today.

- The Board's duty is to consider the strategic options Finnair has and to
prepare for possible changes in the market and competitive environment. Our
profitability must in future be so robust that it is not immediately shattered
if our operating environment changes. It must also be so good that it gives us a
say in any potential partnership arrangements, Klaus Heinemann stresses. - We
want to ensure that the Helsinki Airport continues to grow in any scenario. It
is important that Finns have good air connections. These are the starting points
for the Finnair Board as we consider consolidation as well as future
investments.

Heinemann says he believes that Finnair will in the coming years need closer
partnerships with the largest players of the industry. - We want to ensure that
such changes are implemented so that Finnair has a strong role in them. The
Board does not want Finnair to become market driftwood. We want to find a
structure that protects Finland's vital interests in the Helsinki-Vantaa hub and
its global non-stop connections.

- We must also ensure that Finnair can find sensible financing for its future
investments. Finnair must be able to invest in a next-generation, energy
-efficient fleet in a cost-effective way. To get such financing it is imperative
that we are in a credible shape financially, and our shareholders support
Finnair in its investment efforts.

Heinemann calls for an open dialogue on different ownership and financing
solutions that are in line with shareholder interests, as the airline prepares
for future investments. - In my opinion it would be good to have open discussion
about different alternatives prior to any more severe pressures arising from
crisis situations in the marketplace. To finance the necessary aircraft
investments and to forge possible equity partnerships, we need to also openly
consider flexibility from the equity point of view. I fully understand that such
discussion will not be easy, because any Finnair dialogue always involves so
much emotions and mixed views.

- I am asking you to keep an open mind and consider shareholder issues that
Finnair's development might require, so that Finnair would have the opportunity
to favourably develop its operations, Heinemann says.

CEO Pekka Vauramo: Finnair is at a watershed - crucial to return profitability,
even if the change is painful

In his own speech, Finnair CEO Pekka Vauramo emphasizes the results of Finnair's
Asian strategy and the importance of continuing with the strategy. - It is
thanks to our Asian strategy that we can offer Finns global air connections that
are far better than the size of the country would merit, and maintain domestic
air connections.

- These strong connections support the global expansion of Finnish export
industry, and also support foreign investments in Finland. The connection
between Finnair's success and the GNP of Finland is clear. Our Helsinki Airport
home hub is the second largest cluster of jobs in Finland, Vauramo says. -
However, we are now at a watershed, as Finnair cannot survive its future
challenges with the current cost structure. This is why Finnair is undergoing
probably the largest and the most painful change in the company's history.

-Year 2013 showed clearly that our finances cannot take even the smallest of
surprises, due to the problems with our cost structure. We faced more headwind
than we expected, says Pekka Vauramo. - We have now set profitability as our
number one objective. Without profitability, we have no prerequisites for
growth. Only once we have solved our problems can we grow and employ. This is
why it is crucial to implement our savings program.

- The transformation and savings plans announced today target personnel related
costs, as many of the salary and work time structures date from the era of a
closed market. Negotiating these to the level that corresponds with the current
market practise is, understandably, a challenging task. We a strongly committed
to achieving the savings for Finnair's future.

-I want to believe that we can find a solution that is the best possible one for
Finnair and our personnel. At the same time I must say that if we do not find a
solution in the negotiations, we must unfortunately take alternative actions to
fix our cost structure. We have today announced what those actions would be,
Vauramo says.  - Nevertheless, I hope we will find the future way for Finnair in
agreement together.

Full videos of the AGM speeches of the Chairman of the Finnair Board and the
Finnair CEO will be available on Finnair internet pages later this week.
FINNAIR PLC
Further information:
Finnair communications, 358 9 818 4020, comms(a)finnair.com

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