• Most Popular
  • Most Shared

UPDATE 1-Finnair says seeks further 100 mln euros in savings

Fri Jun 5, 2009 6:12am EDT

Stocks

   

* 70 percent of this staff related and targeted for 2010

* No lay-off decisions made

HELSINKI, June 5 (Reuters) - National carrier Finnair Oyj (FIA1S.HE) said on Friday it would seek an additional 100 million euros ($142 million) in cost savings as it struggles with weak demand and falling ticket prices.

"Finnair's turnover has fallen since the beginning of the year by almost 15 percent because of a reduction in scheduled traffic and a fall in the average ticket price," the firm said in a statement.

Finnair said 70 million euros of the new programme, which comes on top of a previously announced group cost savings plan for 100 million, would focus largely on reducing staff costs and be "emphasised" on 2010.

"Our biggest cost item is staff costs, which represent about a quarter of all our expenditures and that is why savings targets must concentrate in that direction," Deputy Chief Executive Lasse Heinonen said in a statement.

"No decisions about new (lay-off) talks ... have been made," Finnair added.

Finnair shares were little changed after the news, off 0.4 percent at 4.59 euros in thin volumes.



More from Reuters

Demonstrator holds a signboard with a slogan "Bla bla bla ACT NOW" during a rally outside the UN Climate Change Conference in Copenhagen December 12, 2009. REUTERS/Christian Charisius

"Polluters are given rights to continue their dirty habits"

A climate change scientist blasts proposals for a cap and trade system, arguing it allows dirty industries to continue polluting, instead of rewarding innovation.  Full Article | Full Coverage 

    Climate Conference
    Federal Reserve Chairman Ben Bernanke is pictured at his Senate Banking, Housing and Urban Affairs Committee hearing on his nomination to continue as Chairman of the Board of Governors, on Capitol Hill in Washington, December 3, 2009. REUTERS/Jason Reed

    No great expectations

    Investors are getting antsy about when the Fed will tighten its purse strings, now that the economy appears to be coming back to life.   Full Article 

    ECONOMY
    Indian woman mourns death of her relative killed in tsunami in Cuddalore. When an earthquake of magnitude 9.15 struck off Indonesia's Aceh province on December, 26, 2004, it triggered a huge tsuanmi that raced across the Indian Ocean and hit Indonesia, Thailand, Sri Lanka and India. The worst natural disaster of the decade left 230,000 people dead or missing. Taken on December 28, 2004 by Arko Datta

    Pictures that defined a decade

    A woman's grief amid the tsunami devastation and one woman's fight against police in the Amazon are among the indelible Reuters images of the last 10 years.  Slideshow 

    Pictures