Finnair Oyj - Company Announcement

Finnair selects SR Technics as its partner for engine and component services

FINNAIR PLC     STOCK EXCHANGE RELEASE      11 APRIL 2012   AT 09.30 AM (EET)

Finnair and Swiss based SR Technics have signed a Memorandum of Understanding,
according to which Finnair will in the future source engine and component
services for its aircraft from SR Technics. Finnair expects the cooperation to
result in significant cost savings for the company. 

“SR Technics is one of the industry leaders in aircraft maintenance, and they
have an excellent track record,” says Ville Iho, Finnair COO. “Most airlines
use partners in aircraft maintenance, and this is a natural next step for us as
we increasingly focus on our core activities as an airline.” 

“The selection of SR Technics was based on a thorough analysis, where we first
examined the costs and structures of our own maintenance operations, and then
compared the results to tens of players in the industry. This planned
cooperation would clearly improve the cost efficiency of our engine and
component services, while maintaining high quality,” says Iho. 

SR Technics is one of the world's leading independent providers of technical
services for the civil aviation sector. With its head office at Zürich Airport,
SR Technics has 3 300 employees and it provides services to about 500 airline
customers around the world. 

The planned cooperation is a part of Finnair's transformation program started
in August 2011, which includes enhancing the company's partner network. Finnair
increasingly focuses on its airline operations and partners with world-class
companies in other parts of its business. 

Already now a significant share of Finnair's engine maintenance, approximately
half of the company's component maintenance and the majority of aircraft heavy
maintenance for Finnair fleet are done by partners. However, Finnair's line
maintenance, which forms the core of aircrafts' airworthiness and employs a
staff of 550 continues to be an integral part of Finnair's own operations. 

In practice the planned cooperation with SR Technics would result in
discontinuing Finnair's own engine services and making major adjustments to
Finnair's component services. Finnair now starts consultations with personnel
representatives on these plans. 
Finnair announced on August 5, 2011 that it targeted decreases in its annual
costs of 140 million euros by 2014. Finnair has already announced that it: 

• is optimizing the size of its fleet in European air traffic, has discontinued
the leases of four Airbus 320 series aircraft, and subleased five Embraer 170
aircraft 
• has chosen Swissport as its partner for  baggage and apron services
• has signed an Memorandum of Understanding on the sales of its catering
business to LSG Services 
• seeks a partner to accelerate its Nordic Champion strategy and aims to
significantly lower costs in European traffic 
• has improved its route planning and aircraft utilisation
• is streamlining its support functions as well as marketing and distribution
activities 
• has initiated numerous other savings measures throughout the company.

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