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Finnair Will Restructure to Stem LossesAugust 18, 2009 By: Jena Tesse Fox
Starting in October, Finnair will undergo an organization restructure in an attempt to stem its growing losses. The overhaul will include scheduled passenger traffic and leisure flight operations being combined under a new integrated flight traffic organization.
It would also result in greater cooperation between flight operations and the group’s administration.
The airline hopes to shore up its finances after last week reporting an $80 million operating loss in the second quarter. Jukka Hienonen, Finnair’s current President and CEO, announced his resignation after a series of poor results and will step down in six months.
6,000 staff—including 700 pilots—will be laid off as part of the cost-cutting measures, and a further 600 staff have already been made redundant.