• 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

Joint Terminal Attack Controller SSgt Clinton J. Herbison, a U.S. Airman from the 817 Expeditionary Air Support Operations Squadron (EASOS) takes a break during a night mission near Honaker Miracle camp at the Pesh valley of Kunar Province August 12, 2009. Credit: REUTERS/Carlos Barria

Pictures of the Year

A look at the best photos of 2009.  Slideshow 

    PICTURES
    The Dalai Lama jokes with a nasal spray after being asked his opinion on the swine flu during a press conference after his first lecture in Lausanne, Switzerland, August 4, 2009. REUTERS/ Valentin Flauraud

    What a wacky year it's been...

    Um, what's up the Dalai Lama's nose? "Oddly Enough" editor Bob Basler rounds up the goofiest photos of the year.  Full Article 

    Oddly Enough
    A caution sign is seen next to a stock board at the Australian Securities Exchange (ASX) in Sydney September 5, 2008. REUTERS/Daniel Munoz
    Political Risk in 2010:

    Don't say we didn't warn you

    With the financial crisis (mostly) in the past, U.S. investors are eying a fresh start to the coming year. Here's a look at what speedbumps lie ahead.  Full Article 

    Global Markets