Finnair Oyj - Company Announcement

FINNAIR UPDATES COST-CUTTING PROGRAMME IN CARGO OPERATIONS

FINNAIR PLC	STOCK EXCHANGE RELEASE	25 NOVEMBER 2008 15:05
FINNAIR UPDATES COST-CUTTING PROGRAMME IN CARGO OPERATIONS
Finnair is updating its cost-cutting programme, initiated in June, for its
cargo companies. The aim of the cost-cutting programme is to save at least four
million euros within cargo operations. As part of the programme, Finnair Cargo
Oy and Finnair Cargo Terminal Operations Oy, which maintains terminal
operations, will initiate, on 26 November 2008, statutory employer-employee
negotiations under the Act on Co-Determination within Undertakings in order to
cut personnel costs. 
“Cargo demand has fallen worldwide since last spring. Finnair's cargo demand
has also weakened rapidly during the autumn. We estimate that cargo volume will
decline next year by at least ten per cent. This will be reflected above all in
terminal operations, where the volume of cargo being handled has declined
sharply,” says Antero Lahtinen. 
The planned efficiency and restructuring measures may, when implemented, mean a
reduction of an estimated 71 jobs during 2009. In addition, both cargo
companies are planning temporary lay-offs affecting an estimated total of 300
employees. 
The reduction in personnel numbers is expected to take place mostly in Finnair
Cargo Terminal Operations' transport offices in Helsinki, Turku and Tampere and
at the cargo warehouse in Helsinki. In Finnair Cargo, the reductions are
expected to implemented place, for example, in cargo sales and invoicing. 
In addition, further cost-cutting and efficiency measures will be implemented
in cooperation with other units of the Finnair Group. More than half of the
Finnair Group's 50 million euro cost-cutting programme has already been
implemented. Personnel costs will be reduced through unit-specific redundancies
and lay-offs. 
Finnair Plc
Communications
25 November 2008
Further information:  
Antero Lahtinen, Managing Director Cargo Operations, tel. +358 9 818 5400
Kukka-Maaria Salomaa, Personnel and Development Manager, +358 9 818 5428
Timo Riihimäki, Vice President Sales, +358 9 818 5487