Finnair will engage in another round of negotiations that could result in the employment termination of hundreds of cabin crew positioned on its long-haul services. The airline has had to make changes to its fleet and employee structure following the closure of the Russian airspace, which has affected many of the carrier's flights and operations to Asia.

Subcontracting cabin crew roles

Finnair will start negotiations regarding its plans to subcontract inflight service on some of its long-haul flights to Thailand and the US. The recent geopolitical events, such as the closure of Russian airspace, have affected the airline's bottom line, and the current negotiations are part of its strategy to reduce unit costs and strengthen revenues.

Tail of Finnair Airbus A321
Photo: Airbus

During earlier discussions, the carrier suggested some changes related to crew utilization efficiency, layover hotel rules, and additional pay per hour rules for long flights. All these were discussed due to flights to Asia being affected by the closure of Russian airspace. In an official statement, the airline said that a negotiation result was reached with some employee groups, but unfortunately, a solution was not found with the cabin crew in Finland.

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450 jobs on the line

Finnair's cabin service to Singapore, Hong Kong, India, and the Doha routes from Stockholm and Copenhagen are already provided by the carrier's partners. Following these discussions, Finnair could implement subcontracting for additional flights by the end of 2023.

Once this happens, Finnair expects a reduction of up to 450 jobs in its inflight services. Negotiations will start on November 23rd and are estimated to last at least six weeks. A social support program to help those who could lose their work in re-employment will also be discussed. Topi Manner, Finnair's CEO, commented,

“Our target continues to be to find a savings solution together with our cabin crew. We now need a genuine will from the negotiators to find solutions that would allow us to continue inflight service with our own crew, and avoid redundancies. Discussion on alternative solutions is a vitally important part of the change negotiations process.”

Finnair Airbus A350-900
Photo: Vincenzo Pace | Simple Flying

In September, the airline made a similar announcement that it would enter negotiations regarding organizational changes, which could see around 200 jobs lost. But back then, it clarified that the majority of cuts would take place in Finland among its executive and management team, adding that "the negotiations do not concern crew or other operative employees."

Long journey ahead

Finnair's Q3 revenue increased to €719.2 million ($749.31 million), but it continued to be in the red, primarily due to high costs and exchange rates. While revenue increased by 260.6% in the period between July and September compared to last year, the net result for the period was -€37.2 million (-$38.76 million).

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Like airlines all around the world, Finnair, too, has been struggling with a steep rise in fuel prices and a stronger US dollar. While Manner was glad that Finnair's comparable operating result turned positive for the first time since the last quarter of 2019, he admitted that the airline has a long journey ahead to get back to health fully.

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  • Finnair Airbus A350-941
    Finnair
    IATA/ICAO Code:
    AY/FIN
    Airline Type:
    Full Service Carrier
    Hub(s):
    Helsinki Airport
    Year Founded:
    1923
    Alliance:
    oneworld
    CEO:
    Topi Manner
    Country:
    Finland