Finnair Oyj

Regulatory Filings • Feb 4, 2011

Disclosure 284293

Finnair Oyj - Company Announcement

FINNAIR PLANS STRUCTURAL CHANGES IN TECHNICAL SERVICES SUBSIDIARIES

FINNAIR PLC STOCK EXCHANGE RELEASE 4.2.2011 0910 FINNAIR PLANS STRUCTURAL CHANGES IN TECHNICAL SERVICES SUBSIDIARIES Structural changes are planned in the Finnair Group subsidiaries Finnair Technical Services Oy and Finnair Engine Services Oy, which focus on aircraft and component maintenance. "International competition in aircraft maintenance activity is continually intensifying. Our own competitiveness has weakened as costs have grown and we have had to consider a complete restructuring," says Finnair's Senior Vice President, Technical Services Kimmo Soini. "Finnair has implemented a comprehensive fleet renewal and the company's present fleet is modern. A significant proportion of Finnair's aircraft and component maintenance and repair activities would in future consist of services offered to companies outside the Finnair Group. In market-priced services, our cost-competitiveness in the field of aircraft heavy maintenance is inadequate." Finnair Technical Services' operations cover daily and short-term maintenance, i.e. line maintenance, long-term heavy maintenance, and engine and component support. "We plan to discontinue mainly external, unprofitable aircraft base maintenance work. Our objective is to focus on quality, cost-effective technical support of Finnair's own fleet. Safeguarding and improving competitiveness is also essential in other areas of Finnair Technical Services," explains Soini. Statutory negotiations under the Act on Cooperation Within Undertakings, covering all of the companies' 1,600 employees, will be initiated. The personnel reduction requirement arising from the planned changes amounts to 450 jobs. "All of Finnair's technical services operations will be adjusted to the new situation. The clear reduction in the amount of work will also substantially reduce the need for labour. We will make every effort to use the most flexible possible means in reducing personnel, but most probably we cannot avoid significant redundancies." Finnair Plc Communications 4.2.2011 Further information: Lasse Heinonen, Deputy Chief Executive Officer, Finnair Plc, tel. +358 9 818 4951 Kimmo Soini, Senior Vice President, Finnair Technical Services Ltd. and Finnair Engine Services Ltd. tel. +358 9 818 6435