Finnair Oyj - Company Announcement

Finnair reaches savings agreement with cabin crew

Finnair and the Finnish Cabin Crew Union (SLSY) have reached a savings agreement
in the negotiations related to Finnair's savings program.

The agreement brings Finnair 18 million euros in permanent annual savings.
Approximately 75% of the savings materialize during this agreement period and
25% in the future through changes to the employment terms of new cabin
attendants. In return, Finnair gives cabin personnel protection from
redundancies for the next two years, protection from outsourcing and pension
incentive. The savings impact of the outsourcing contracts already made were
acknowledged in the targets of the agreement.

“I am extremely happy and relieved that we were able to negotiate successfully
with the cabin personnel. The negotiations have been long and gone through many
phases, but the most important thing is that agreement was finally reached. The
agreement is a great display of the negotiation teams' commitment and their
willingness to build Finnair's future together. In return, we wanted to offer
cabin personnel protection from redundancies for the next two years,” says Pekka
Vauramo, Finnair CEO.

As a result of the savings agreement, Finnair is no longer planning on further
outsourcing of cabin services. As announced on 1 September, however, Finnair has
already signed a contract with OSM Aviation to outsource cabin services on
Singapore and Hong Kong routes, and this will go ahead as planned.

”Reaching this savings agreement is a significant step in restoring Finnair's
profitability and enabling the financing of aircraft investments. The agreement
brings the personnel costs of our Finnish cabin personnel to a sustainable and
competitive level. As a result, we can continue serving the cabin on most routes
with our own crew, Vauramo says.

In October 2012 Finnair began a 60 million euro cost savings program -
additional to the 140 million euro cost savings program begun in August 2011 -
mainly in personnel-related costs. After the agreement signed with SLSY, Finnair
has reached savings agreements with almost all of its personnel groups. Savings
measures continue in the areas where savings targets have not been reached.
FINNAIR PLC
Further information:
Finnair communications, 358 9 818 4020, comms(a)finnair.com

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