Finnair has announced that it will begin
discussions with relevant parties on 25 May about reducing the number of people
on its payroll.
Finnair has approximately 6,100 employees in
The airline has said that, if realised, the layoffs
could be temporary, for a fixed period of time, or until further
Similar measures are planned for those Finnair employees
who are based outside of Finland.
As with most airlines, Finnair has been hit very
hard by the COVID19 pandemic, and in July aims to operate
approximately 30% of its normal schedule.
ďIt is clear that as we fly
significantly less, the amount of work available is lower than
normally as well. The gradually growing traffic program will
increase also resource needs in due course. However, considering
the uncertainties caused by travel restrictions and the
coronavirus situation in general, the return to normal will take a
considerable time. That is why the temporary layoffs we now start
negotiations on unfortunately seem to be inevitable, Ēsays Johanna Karppi, SVP for People & Culture at Finnair.
In 2019, volume-driven costs formed about
60% of Finnairís total cost base. The airline is looking to reduce
costs by almost 80-million Euro starting from year 2022 compared
to year 2019.
Finnair will drive this by cutting real
estate costs, aircraft leasing costs, compensation structures,
sales and distribution costs, IT costs as well as administration
Finnair will also continue streamlining of
its operations, digitalising and automating its customer
processes. The airline also plans to renegotiate its supplier and
Finnairís CEO, Topi Manner, said, ďIn the
post-corona market, those who can adapt their costs to the changed
market and the competitive situation are the ones who will
succeed. Finnair intends to be among the winners, and that is why
we target savings across different cost items in a determined
Finnairís current plan assumes that traffic will
recover to the 2019 level in 2-3 years.