Finnair Negotiating for IT and Ground Equipment Re-organisation

Finnair is continuing with its Group structure renewal. The company has begun negotiations on the development of its IT-functions in a separate company with strategic partners. In addition, Finnair will give up its ground equipment and negotiate for the production of related services. In accordance with its strategy, Finnair is concentrating on its core businesses.

Negotiations have begun with leading companies in these fields. With regard to Finnair IT, negotiations are underway primarily with IBM. The goal is to improve cost efficiency by means of scale benefits created by the arrangements. The cooperation is also believed to further improve Finnair IT’s production quality and e-commerce know-how as well as speeding up the digitalisation of the Group’s processes.

The goal of the reorganisation of ground equipment and related repair operations is to improve the equipment’s economic acquisition and use as well as rationalise its maintenance and repair operations throughout Finland. The equipment includes 830 motorised vehicles. Negotiations are underway with ABB Service on the basis of the letter of intent signed May 28, 2002.

The reorganisation may offer the personnel better opportunities than before in developing their skills and advance in forerunning companies in their fields. Finnair IT has a staff of just under 200 and the Ground Equipment department a little over 40. Negotiations under the Act on Cooperation within Undertakings have been begun with the personnel.

The goal is to free capital employed in support functions for core businesses in accordance with the Finnair Group strategy. In the event of its realisation, the reorganisation will have a positive effect on the current year’s financial result.