Stock Exchange Release 15.1.2009 9.50 Finnair has concluded the statutory employer-employee negotiations under the act on Co-Determination within Undertakings (YT negotiations) that began in June. The goal of the negotiations was to achieve 25 million euros of savings in personnel expenses, corresponding to around five per cent of total personnel costs. The need for personnel reductions was estimated in the summer at 500 jobs. Around 120 of these will be implemented as redundancies. The remainder of the savings will arise mainly through temporary lay-offs. In addition, the number of Finnair Group personnel will fall through the ending of 400 fixed-term employment contracts at the turn of the year or during the spring. “As a result of this exceptionally long and thorough process, we managed to limit the number of redundancies. Lay-offs will be widely applied to the company's personnel, and they will be arranged so as to minimise disruption to the flight programme,” explains Finnair's SVP Human Resources Anssi Komulainen. The YT negotiations initiated last June covered the whole Group. In September, a temporary pay cut of five per cent, the cancellation of holiday pay or the relinquishing of pay rises already agreed were proposed to Finnair's personnel groups in order to avoid redundancies, but personnel representatives did not accept these proposals. The YT negotiations process continued during the autumn in the various units of the Finnair Group. “We have devoted much time to finding genuinely new constructive alternatives to redundancies. The company's financial situation was revealed to personnel representatives in detail and they were given the opportunity to give their own views on the issues.” In addition to the over 100 redundancies, more than 3,000 Finnair employees will be laid off during this year, as a rule for periods of 2-3 weeks. Some of the employees have participated in the joint cost-cutting measures by voluntarily giving up their holiday pay. As far as pilots are concerned, the YT negotiations have been suspended due to ongoing collective employment agreement negotiations, but YT negotiations will continue in order to reach the target. In addition to the above, in Finnair's cargo companies YT negotiations initiated in November were concluded on Tuesday this week. In the cargo companies, around 20 jobs will be cut and around 40 employees laid off until further notice due to a sharp fall in cargo demand and a decline in the volume of work. Around 20 employees will be transferred to new jobs. In addition, lay-offs of differing durations are being planned for 300 other cargo employees during 2009. The personnel savings are part of a 50 million euro profitability improvement programme initiated in the summer. “By these measures we will cut costs by around 20 million euros. But this will not be enough. Due to further weakened demand and the financial situation we will continue actively to seek new significant efficiency measures,” says Komulainen. Finnair Plc Communications 15.1.2009