Finnair is continuing with its Group structure renewal. The company has
begun negotiations on the development of its IT-functions in a separate
company with strategic partners. In addition, Finnair will give up its
ground equipment and negotiate for the production of related services. In
accordance with its strategy, Finnair is concentrating on its core
businesses.
Negotiations have begun with leading companies in these fields. With regard
to Finnair IT, negotiations are underway primarily with IBM. The goal is to
improve cost efficiency by means of scale benefits created by the
arrangements. The cooperation is also believed to further improve Finnair
IT's production quality and e-commerce know-how as well as speeding up the
digitalisation of the Group's processes.
The goal of the reorganisation of ground equipment and related repair
operations is to improve the equipment's economic acquisition and use as
well as rationalise its maintenance and repair operations throughout
Finland. The equipment includes 830 motorised vehicles. Negotiations are
underway with ABB Service on the basis of the letter of intent signed May
28, 2002.
The reorganisation may offer the personnel better opportunities than before
in developing their skills and advance in forerunning companies in their
fields. Finnair IT has a staff of just under 200 and the Ground Equipment
department a little over 40. Negotiations under the Act on Cooperation
within Undertakings have been begun with the personnel.
The goal is to free capital employed in support functions for core
businesses in accordance with the Finnair Group strategy. In the event of
its realisation, the reorganisation will have a positive effect on the
current year's financial result. |
