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Finnair sell-off will probably be limited

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Unions likely to keep up pressure on Finnish government

International investors expecting a reduction in Finland’s 55.8% ownership of Finnair will probably be disappointed, the news agency Reuters reports. The government is due to announce its 2014 budget proposals next week, but pressure from unions will limit large-scale sell-offs and privatisations.

The second and third biggest parties – the SDP and the Leftist Alliance – in the six-party coalition government are backed by unions, which want the state to keep its historical role in business and keep away job cuts.

Finnair is currently in the middle of a restructuring process, including discussions with unions on ways to minimise job cuts.

“In general, we are very critical towards selling state ownings,” Annika Lapintie, a senior member of the Leftist Alliance, told Reuters. “The state must take care of Finnish employment and ownership is one way of doing that.”

Reuters

[pictured: Airbus A340-300; courtesy Finnair]

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