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Finnair reaches savings deal with pilots

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Carrier says agreement brings it €17 million in savings

Finnair and the Finnish Air Line Pilots’ Association have reached a result in protracted negotiations related to the airline’s savings program. The carrier is stressing that the agreement brings it “€17 million in permanent annual savings”.

Around €11 million will materialise gradually over a two-year period, €3 million in the next few years through growth and €3 million in the future through changes to pensions and the employment terms of new pilots. In return, Finnair says it is giving pilots protection from redundancies for the next two years.

It was also agreed that Finnair would study an incentive plan for pilots. The savings agreement is “contingent on the realisation of this incentive plan that will be formulated during autumn,” Finnair said.

The savings agreed with the pilots’ association mainly concern changes to salary and working time. The two sides agreed in June on transferring to a new wage model, but the savings solution was finally developed based on the current wage model.

“We are pleased that in this difficult situation we were able to negotiate a savings agreement with the pilots,” Finnair CEO Pekka Vauramo said. “The incentive plan included in the agreement requires further study, which will be finalised during the autumn. The majority of the savings would materialise on a quick schedule, which is essential in Finnair’s current financial situation.”

Yahoo! Finance

[pictured: FIN Cockpit Crew in E170 Aircraft; photo courtesy Finnair]

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