Finnair to temporarily lay off staff to cut costs

HELSINKI — Finnair PLC plans to temporarily lay off up to 1,700 cabin stewards and air hostesses next year to cut costs, airline officials said Tuesday.

The staggered layoffs, mostly in April and May 2009, will last about two weeks, airline spokeswoman Kati Lehesmaa said. The measures are aimed at saving some euro25 million ($32 million), she said.

"We don't know exactly how many staff it will affect but many are prepared to take a holiday in the spring and some will retire," Lehesmaa said. "Also, we shall be laying off some part-time employees."

The Finnish national carrier is also engaged in wage negotiations with the company's 750 pilots and will decide on possible temporary layoffs for pilots after the talks are over.

In September, Finnair employees rejected proposals by the management for voluntary wage cuts to avoid cutting 400 jobs in the airline, which has been struggling with high fuel costs and heavy competition. It then said it was seeking ways to make savings of some euro50 million ($64 million).

In October, Finnair reported a third-quarter net loss of euro17 million ($22 million), down from a net profit of euro40 million a year earlier.

____

On the Net:

http://www.finnair.com

Back To Top