June 23, 2014

Finnair to proceed with outsourcing of cabin services

Finnair will proceed with cabin service outsourcing according to the plans discussed in the employee consultations in order to achieve its cost reduction target. The company is planning to outsource cabin services on a total of approximately 20 long-haul and short-haul routes in the next two years. The aim is to outsource 1–3 routes within this year. The timetable for the implementation of the plans and the related impacts on personnel will be determined in stages as negotiations with potential partners move ahead. The cost reductions achieved by outsourcing and their timetable will be clarified later as the plans take shape. On March 27th, Finnair announced it was starting employee consultations concerning cabin personnel. The consultations, which were concluded on May 26th, were focused on Finnair’s plans to increase the use of outsourcing in cabin services in long-haul and short-haul traffic. The measures are part of Finnair’s cost reduction program commenced in 2011. Finnair sought €18m in permanent annual cost reductions primarily through negotiations with cabin personnel, but the negotiations did not lead to the desired result.



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