Finnair and the LSG Group begin negotiations about new forms of cooperation as LSG does not use its purchase option of LSG Sky Chefs Finland Oy

Finnair Plc     Stock Exchange Release    1.11.2016 at 9.30 (EET)

LSG Sky Chefs Finland has been Finnair’s strategic partner in producing catering
services at the Helsinki Airport since 2012.

Finnair and the LSG Group will begin negotiations about new forms of cooperation
as the LSG Group does not exercise its purchase option of LSG Sky Chefs Finland
Oy, a catering company based at the Helsinki Airport. Both companies formed a
partnership in 2012, but now the cooperation in its current form will stop
latest by 1.8.2017. The purpose of these negotiations is to agree about forms of
cooperation after the partnership period. Finnair will now continue planning how
catering-services at the Helsinki airport will be organized in the future with
high quality and cost efficiency.

In accordance with the agreement made in 2012, the responsibility and control
for the operative activities of LSG Sky Chefs Finland Oy (formerly Finnair
Catering Oy) were transferred to LSG. The LSG Group had an option to purchase
all shares of LSG Sky Chefs Finland until the end-October 2016. The LSG Group
has now decided that they will not exercise its purchase option of LSG Sky Chefs
Finland Oy.

“Inflight catering and inflight sales products are an important part of the
journey. Further development of the customer experience is at the core of our
strategy,” says Piia Karhu, Senior Vice President for Customer Experience at
Finnair. Catering services therefore continue to be an important area and we see
plenty of opportunities for further development. In this, the Helsinki-Vantaa
based catering unit has a key role. Despite the change our cooperation will
continue in many catering areas”.

“Finnair and the LSG Group will reshape our partnership in Helsinki. Finnair is
an important customer to us in many areas – globally and in Helsinki. Some
aspects of our partnership will be extended on a worldwide scale,” says Frank
Theis, SVP Sales, Product & Marketing at the LSG Group. “At the same time, we
will stay and grow in Finland and at Helsinki-Vantaa Airport while continuing to
diligently serve all of our other customers.”

According to current estimates, the change does not have significant impact on
Finnair’s operating result or financial standing.

LSG Sky Chefs Finland Oy is Finnair’s 100-percent owned subsidiary but fully
under LSG’s control, operating at the Helsinki Airport area. It prepares and
supplies meals and other services for inflight sales products primarily for
Finnair and also for other airlines operating at Helsinki Airport. It currently
employs 480 persons.
Further information:
Finnair communications, tel. +358 9 818 4020, comms(a)finnair.com
Kerstin Cynthia Lau, LSG, Director Corporate Communications, LSG Lufthansa
Service Holding AG, Tel +49 6102 240 886, kerstin.lau@lsg-group.com

Distribution:
Nasdaq Helsinki
Principal media
Finnair is a network airline specialising in passenger and cargo traffic between
Asia and Europe. Helsinki’s geographical location gives Finnair a competitive
advantage, since the fastest connections between many European destinations and
Asian megacities fly over Finland. Finnair’s vision is to offer its passengers a
unique Nordic experience, and its mission is to offer the smoothest, fastest
connections in the northern hemisphere via Helsinki and the best network to the
world from its home markets. Finnair is the only Nordic carrier with a 4-star
Skytrax ranking and a member of the oneworld alliance. In 2015, Finnair’s
revenues amounted to EUR 2,255 million and it had a personnel of 4,800 at the
year-end. Finnair Plc’s shares are quoted on Nasdaq Helsinki.