12.11.2009 10:30 Finnair is reviewing opportunities to create business partnerships in operations that support flight traffic. The review will take place in ground handling company Northport, Finnair Cargo Operations and Finnair Catering. Statutory employer-employee (YT) negotiations in Catering, which lasted ten weeks, have ended. During the negotiations, solutions by which the required five million euros in savings would be achieved were pursued with the Finnish Aviation Union (IAU) , which represents production personnel. The IAU's local units have not accepted a stabilisation solution proposed by the employer, which was an alternative to the loss of 120 jobs. With the failure of these negotiations, Finnair Catering Oy is compelled to seek cuts in personnel costs in other ways. In the first stage, Finnair Catering will make at least 60 employees redundant for productional and economical reasons. Demand for catering products has fallen due to lower passenger numbers and altered service concepts. Finnair Catering will continue to pursue a solution to adjust its retail operations. Following these redundancies, a reorganisation of operations will be considered to achieve additional savings, and a review of structural solutions will be initiated. A stabilisation agreement generating 1.5 million euros in savings was reached with white-collar employees in Finnair Catering in October. Finnair Catering Oy employs a total of around 650 people. During the latter part of 2009, the Finnair Group's ground handling company Northport will review the possibility of reorganising its baggage hall and apron services at Helsinki-Vantaa airport. To this end, Northport has signed a letter of intent with the Barona Group. Northport is seeking arrangements by which efficiency and significant cost savings will be achieved through cooperation in ground handling operations. Behind the review, moreover, is Helsinki-Vantaa's new baggage handling terminal, which is expected to reduce Northport's personnel requirements in future. Northport is seeking a way of working by which employees can be offered full-time work and the need for labour reductions is minimised. Around 550 people work in baggage hall and apron tasks. Furthermore, partnership options are also being explored in Finnair's cargo terminal operations. Around 170 people are employed in terminal operations. Finnair Plc Communications Further information: Lasse Heinonen, Deputy Chief Executive Officer, Finnair Plc, tel. +358 9 818 4950 Jukka Hämäläinen, Managing Director, Northport Oy, tel. +358 9 818 5300 Kristina Inkiläinen, Managing Director, Finnair Catering, tel. +358 9 818 5090