newstodate.aero
MAR 24, 2003 (newswtodate): Finnair has announced a drastic cost-cutting programme aiming at realizing 160 million euro in annual savings.
Finnair wil axe 1,200 jobs over two years, including 200 in travel agencies, and 1,000 in traffic-related positions.
The savings targets represent approximately ten percent of all operational expenses in the Finnair Group.
Personnel expenses account for approximately 30 percent of Finnair's expenses, with variable costs making up 38 percent and other operating expenses 32 percent. The cost-cutting programme aims for permanent structural changes in both the personnel and organisational structure. In proportion to Finnair's capacity plans for the next few years, the savings target means a 15 percent improvement in unit costs.
Most of the measures will be implemented by the end of the year. The total effects on the result will be seen by 2005, Finnair says.
Finnair wil axe 1,200 jobs over two years, including 200 in travel agencies, and 1,000 in traffic-related positions.
The savings targets represent approximately ten percent of all operational expenses in the Finnair Group.
Personnel expenses account for approximately 30 percent of Finnair's expenses, with variable costs making up 38 percent and other operating expenses 32 percent. The cost-cutting programme aims for permanent structural changes in both the personnel and organisational structure. In proportion to Finnair's capacity plans for the next few years, the savings target means a 15 percent improvement in unit costs.
Most of the measures will be implemented by the end of the year. The total effects on the result will be seen by 2005, Finnair says.