Finnair Braced for Widespread Savings

CEO and President of the Finnair Group, Keijo Suila, has spoken of the seriousness of the situation facing the aviation industry in the wake of the attacks in the USA, saying that "the fight is for survival, and the time for beauty contests is now over". But Suila also states that by quickly putting into effect every possible prudent measure, the airline "can avoid panic changes in our operations".

Suila lists the following measures that all Finnair staff have been instructed to implement until further notice:

* Investments halted, with realisation of only the most essential investment projects

* No renewal of temporary employment contracts

* A freeze on wages and recruitment

* A halt to all possible new acquisitions or their postponement

* Aggressive savings in all unessential procurements and purchases

* Rigid savings in administrative costs, as well as travel, hotel and representative expenses

* Initiation of reorganisation in route network and capacity

Other measures, such as lay-offs and redundancies, may also be necessary.

The Finnair Board of Directors meets on Monday September 24 to review the company's situation, and a statement will be issued about the prospects for the coming autumn and winter.