Finnair Oyj

Business and Financial Review • Jul 4, 2012

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Finnair Oyj - Company Announcement

Finnair and SR Technics enter into 10-year contract on engine and component services

FINNAIR PLC STOCK EXCHANGE RELEASE 04 July 2012 AT 13:00 EET Finnair has signed a definitive agreement with SR Technics for engine and component services. The deal follows a Memorandum of Understanding signed by the two companies on April 11, 2012. Finnair will source all engine services for its A320 and A340 aircraft and component services for its Airbus and Embraer fleet from SR Technics. The work will start in July 2012 for engine services and in September 2012 for component services. As a part of the agreement, SR Technics's affiliate also acquires related in-scope and surplus spares from Finnair. Finnair expects the cooperation to result in significant cost savings for the company. ”This agreement with SR Technics is a natural next step for us as we increasingly focus on our core activities as an airline. With this cooperation we can clearly improve the cost efficiency of our engine and component services, while maintaining high quality. This arrangement will also release capital previously tied to component services for use in our core business,” says Ville Iho, Finnair COO. Swiss based SR Technics is one of the world's leading independent providers of technical services for the civil aviation sector and it has an excellent track record. 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 cooperation with SR Technics is a part of Finnair's transformation program started in August 2011, which includes enhancing the company's partner network. Finnair has published today a separate release on the personnel impacts of this agreement. 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: • has signed a Memorandum of Understanding on transferring its European Embraer flying as contract flying to Flybe Nordic • seeks solutions to improve the profitability of its remaining European traffic • 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 improved its route planning and aircraft utilisation • has chosen Swissport as its partner for baggage and apron services • 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 SR Technics: Annabel Watson, Corporate Communications Manager, Tel: +41 58 688 50 22, annabel.watson(at)srtechnics.com Distribution: NASDAQ OMX Helsinki Principal Media