Tue, 24 Jun, 2014 12:03:15 AM FTimes-STT Report, June 24  File picture of Finnair aircraft. Photo – Lehtikuva. The national flag-carrier Finnair has announced that it will go ahead with plans to outsource cabin crew on 20 long-haul and short-haul routes in the next two years.
The airline intends to outsource 1-3 routes this year.
Finnair could not reach an agreement with its cabin crew on its 18 million euro annual cost-saving measures.
Finnair Chief Operating Officer Ville Iho in a statement said the company on Monday met with representatives of the Finnish Cabin Crew Union, SLSY, in an effort to find a common cost-reduction solution that would make it possible to avoid outsourcing.
“SLSY offered 2.9 million euro permanent, instant savings as well as 4.8 million euro savings that would be achieved within a 20-year timeframe,” said Iho.
According to Iho, potential partners are likely to come from within the country, elsewhere in Europe as well as from Asia.
Iho also added that as outsourcing requires careful negotiations and planning to ensure best possible service quality, it will be done in phases.
Finnair announced last week that it had reached partial agreement with the Finnish Air Line Pilots’ Association (SLL) on a new wage model that lowers unit costs.
The negotiations between Finnair and SLL will continue until September 7.
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