Airline wants big cuts to personnel over next two years
Finnair says it will proceed with its cabin service outsourcing according to plans, discussed in consultations with employees, with the aim of achieving cost reduction targets.
The company is planning to outsource cabin services on a total of around 20 long-haul and short-haul routes in the next two years. The aim is to outsource on between one and three routes this year.
The timetable for implementation and the impact on personnel will be determined in stages as negotiations with potential partners move ahead, Finnair stresses, and cost reductions will be clarified as the plans take shape.
Finnair announced on March 27 that it was starting employee consultations concerning cabin personnel. The consultations, which were concluded on May 26, focused on the airline’s plans to increase outsourcing of cabin services. Finnair had sought €18 million in permanent annual cost reductions primarily through negotiations with cabin personnel, according to a cost-cutting plan approved in 2011, but Finnair says the negotiations did not lead to the result it wanted.
Finnair says it needs to cut its own personnel over the next two years by approximately 540 man-years. The reduction options include redundancies, shifts to part-time work, temporary lay-offs, or combinations of these. The method of implementation will depend on the progress of route outsourcing.
[pictured: Finnair cabin service; courtesy Finnair]