1,200 Finnair Jobs on Chopping Block

Taneli Hassinen, Finnair’s investor relations head, says no savings targets have been confirmed. However Timo Willberg, president of the Finnish Airline Pilots’ Association, says one savings measure under consideration includes cutting personnel costs by 15 percent. Such savings would require two-month layoffs of the entire staff or 1,200 job cuts, according to Willberg.

The Union of Salaried Employees, which represents the airline’s technical and administrative staff, has previously slammed proposed pay cuts. The Finnish Cabin Crew Union also opposes reductions in pay, saying layoffs are a better option.

Airline Industry Slump Clips Finnair’s Wings

Finnair has been hit hard in the recession as people fly less. The company has cut capacity and jobs as a result, saying in late April that over 6,000 staff members were affected by temporary lay-offs alone. The company has forecast a 2009 operating loss.

Last month Finnair reported lower April passenger figures and said a steep drop in business travel had led to an accelerated fall in air fares.