LordHowe
Topic Author
Posts: 671
Joined: Fri Jan 24, 2003 10:52 pm

AY To Cut 670 Jobs

Fri May 05, 2006 6:27 pm

Press release today (www.finnairgroup.com):

" ... Finnair will improve its competitiveness by initiating a structural change to safeguard the profitability of all parts of the company. Through the planned measures, Finnair aims to achieve annual cost savings of 80 million euros ...The objective is dispose of unprofitable maintenance functions. As a consequence of the restructuring, statutory employer-employee negotiations covering all Technical Services staff will begin with the aim of cutting 300 jobs ... The aim is also to merge Finnair Group's financial services units and,
owing to the acquisition of new information systems, work processes in a number of other administrative units will be reorganised, reducing the need for labour by more than hundred employees ...The Finnair Group's total number of employees is not expected to fall as a result of the announced measures, because growth in traffic will also require substantial additional investment in some areas. During the current year, Finnair will recruit up to 350 new flight operations staff. In future, the need for additional staff in operational
activities will amount to as high as 200 employees per year ..."


Regards,
LordHowe
Lord Howe Island - The Last Paradise
 
UpperDeck79
Posts: 1062
Joined: Tue Feb 22, 2005 11:14 pm

RE: AY To Cut 670 Jobs

Fri May 05, 2006 7:44 pm

Why did you include only the job cutting in the title, not the hireings?
AY and ANA rock!
 
FFlyer
Posts: 552
Joined: Sat Nov 24, 2001 6:46 am

RE: AY To Cut 670 Jobs

Fri May 05, 2006 8:28 pm

But...on the other hand: he didn't include another matter, either:

Finnair lost 5 million Euros on 1st quarter - when it was expected to make some profit. What kind of auditors do they have...?!

Do the job cuttings in tech ops mean that they will outsource those operations to the Far East? I mean, they basically say that they are cutting jobs because they are increasing traffic (to the Far East).

Well, I have never liked that airline, anyway.
 
UpperDeck79
Posts: 1062
Joined: Tue Feb 22, 2005 11:14 pm

RE: AY To Cut 670 Jobs

Fri May 05, 2006 8:51 pm

Quoting FFlyer (Reply 2):
Do the job cuttings in tech ops mean that they will outsource those operations to the Far East?

I don't think it means that. I assume it means letting go some aircraft types that AY doesn't use anymore: they have full tech op capabilities and spare part resources for DC-9s and DC-10s, for example, which AY doesn't use anymore.

Quoting FFlyer (Reply 2):
Finnair lost 5 million Euros on 1st quarter - when it was expected to make some profit. What kind of auditors do they have...?!

The title of the press release is actually "Finnair's first quarter in the red as anticipated", though...

[Edited 2006-05-05 13:55:55]
AY and ANA rock!
 
LordHowe
Topic Author
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RE: AY To Cut 670 Jobs

Fri May 05, 2006 8:59 pm

Quoting UpperDeck79 (Reply 1):
Why did you include only the job cutting in the title, not the hireings?

The job cuttings are to happen - nobody knows yet if they actually will hire anyone. We all know that they do have plans of growth, yes! It's been widely discussed on a.net too - but who knows with the Chinese starting PVG to LED and what next ...

Quoting FFlyer (Reply 2):
Finnair lost 5 million Euros on 1st quarter - when it was expected to make some profit. What kind of auditors do they have...?!

The five million euros loss on first quarter is affordable for AY - they are in such a good shape - and it happened because of the 30 million more to the fuel costs. I suppose that they do have good auditors as they are cutting their cost now by 80 millions a year.

Regards,
LordHowe
Lord Howe Island - The Last Paradise
 
LordHowe
Topic Author
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RE: AY To Cut 670 Jobs

Fri May 05, 2006 9:03 pm

Quoting UpperDeck79 (Reply 3):
The title of the press release is actually "Finnair's first quarter in the red as anticipated", though...

Well, they seem top have different titles in different places - the title on www.finnairgroup.com is "PERSONNEL REDUCTIONS IN FINNAIR'S SUPPORT FUNCTIONS, ADDITIONS IN FLIGHT OPERATIONS"

So here you have also "the additions" ...

Regards,
LordHowe
Lord Howe Island - The Last Paradise
 
UpperDeck79
Posts: 1062
Joined: Tue Feb 22, 2005 11:14 pm

RE: AY To Cut 670 Jobs

Fri May 05, 2006 9:19 pm

Actually, Mr. Hienonen explained now to STT (Finnish news agency) that the figure 670 means the number of people they will have discussions with about their careers. They are not cutting 670 jobs as you are stating, only some of these people will loose their jobs.

Hence, the title is a bit misleading...

[Edited 2006-05-05 14:26:41]
AY and ANA rock!
 
andaman
Posts: 2271
Joined: Wed Oct 05, 2005 5:29 am

RE: AY To Cut 670 Jobs

Sat May 06, 2006 3:30 am

Quoting FFlyer (Reply 2):
But...on the other hand: he didn't include another matter, either:

Finnair lost 5 million Euros on 1st quarter - when it was expected to make some profit. What kind of auditors do they have...?!

Do the job cuttings in tech ops mean that they will outsource those operations to the Far East? I mean, they basically say that they are cutting jobs because they are increasing traffic (to the Far East).

Well, I have never liked that airline, anyway.

Personally I seldom fly Finnair, but I admire how it is run, it's one of
the most healthy companies in business. And the news said that in next few years the total number of jobs is increasing (by 1000 or so) if their Asia business works as planned.

[Edited 2006-05-05 21:07:24]
Chinese cookie in SFO: "You're doomed to a life of forever travelling abroad and to be able to afford it!"
 
HS748
Posts: 621
Joined: Tue Oct 11, 2005 3:01 am

RE: AY To Cut 670 Jobs

Sat May 06, 2006 3:56 am

Quoting FFlyer (Reply 2):
Finnair lost 5 million Euros on 1st quarter - when it was expected to make some profit. What kind of auditors do they have...?!

Auditors audit, Finnair manages its business.
 
LordHowe
Topic Author
Posts: 671
Joined: Fri Jan 24, 2003 10:52 pm

RE: AY To Cut 670 Jobs

Sat May 06, 2006 5:18 am

Quoting UpperDeck79 (Reply 6):
Actually, Mr. Hienonen explained now to STT (Finnish news agency) that the figure 670 means the number of people they will have discussions with about their careers. They are not cutting 670 jobs as you are stating, only some of these people will loose their jobs.

UpperDeck79,

The facts are facts - no matter how somebody is trying to explain them to any news agency. If you can open http://www.finnairgroup.com/en/index.html
and focus your eyes on the blue section to the right and then read "Cutting 670 jobs in 2006-07" - I DID NOT invent it!

The thing is - as explained here earlier - that they are getting rid of some aircraft types - like MD80s - and this means that it's not any more profitable for them to have maintenance for that type. So this is (partly) the reason why so many people have to go. I'm saying (as Finnair says) that 670 jobs are cut - some of these people will get retired some are losing their jobs.

If at the same time Finnair is (trusting in) to recruit new people for their flight operations, they will not be these same people from techs, so some jobs are cut, new jobs will maybe be born ...

What is it with (most of) you Finnish guys here in a.net - why is AY like something sacred and holy, like a national anthem, to you? Why should they never be criticized? I've been using airliners - partly as professional - for almost 30 years now and I've never been very fond of AY's long-haul service. If I can choose, I'll always choose on long-haul something else than AY, beacause AY long-haul is really not good. Try something else, and you'll notice it too.

Regards,
LordHowe
Lord Howe Island - The Last Paradise
 
UpperDeck79
Posts: 1062
Joined: Tue Feb 22, 2005 11:14 pm

RE: AY To Cut 670 Jobs

Sat May 06, 2006 6:04 am

Quoting LordHowe (Reply 9):
The facts are facts - no matter how somebody is trying to explain them to any news agency. If you can open http://www.finnairgroup.com/en/index.html
and focus your eyes on the blue section to the right and then read "Cutting 670 jobs in 2006-07" - I DID NOT invent it!

You are correct, that's what it says. I think I got a little bit disoriented when I first had read the Finnish version. And yes, that STT thing seems to be only aobut twisting the words.

Quoting LordHowe (Reply 9):
I'll always choose on long-haul something else than AY, beacause AY long-haul is really not good.

The thing why I like AY is that it takes me from my hometown non-stop to so many places I want to go. I love it that I can get to KIX in 9 hours instead of taking LH/AF/BA first 2.5 hours to the wrong direction and then 11.5 hours to the right direction. Same goes for PEK, NRT, BKK etc.

I've tried long-haul on QF, SQ, NW and KL so I know what you mean by AY not being that great (much, much better than NW of course ;D), but out of those only KL even serves Finland!
AY and ANA rock!
 
OHLBU
Posts: 224
Joined: Tue Jan 11, 2005 7:35 am

RE: AY To Cut 670 Jobs

Sat May 06, 2006 3:47 pm

Many other functions within Finnair are also under evaluation now, staff ticket office, company sickness fund operations, ground handling subsidiary Northport. Nobody knows how many will lose their job, and how many new staff will be hired, most probably the number 670 is the over-estimated maximum. The focus will be on reshaping processes all over the company, one example already in operation is Northport's staff working at FCC(Finnair Contact Center, previously known as telephone sales) outside terminal rush-hours. In maintenance the over-staffing is due to the renewed Finnair fleet, the new Airbus and Embraer models need much less work than their predecessors, and also the willingness to give up the ability to work on older types that are no longer operated by Finnair itself. On paper this all makes sense, lets see how it will be materialize within a year or two. Finnair's new CEO Jukka Hienonen was know to be an aggressive streamliner so something like this was expected to happen, especially with the rising fuel costs.
 
andaman
Posts: 2271
Joined: Wed Oct 05, 2005 5:29 am

RE: AY To Cut 670 Jobs

Sat May 06, 2006 7:27 pm

Quoting LordHowe (Reply 9):

UpperDeck79,

The facts are facts - no matter how somebody is trying to explain them to any news agency. If you can open http://www.finnairgroup.com/en/index.html
and focus your eyes on the blue section to the right and then read "Cutting 670 jobs in 2006-07" - I DID NOT invent it!

The thing is - as explained here earlier - that they are getting rid of some aircraft types - like MD80s - and this means that it's not any more profitable for them to have maintenance for that type. So this is (partly) the reason why so many people have to go. I'm saying (as Finnair says) that 670 jobs are cut - some of these people will get retired some are losing their jobs.

If at the same time Finnair is (trusting in) to recruit new people for their flight operations, they will not be these same people from techs, so some jobs are cut, new jobs will maybe be born ...

What is it with (most of) you Finnish guys here in a.net - why is AY like something sacred and holy, like a national anthem, to you? Why should they never be criticized? I've been using airliners - partly as professional - for almost 30 years now and I've never been very fond of AY's long-haul service. If I can choose, I'll always choose on long-haul something else than AY, beacause AY long-haul is really not good. Try something else, and you'll notice it too.

Regards,
LordHowe

I quess it is easy to agree that AY's short-haul product is good and the long-haul less so, to put it shortly. And talking about economy class. Because of their busy transit business in HEL, also Finns
are offered more direct flights, both in Asia and Europe.
If SAS would be the main operator in Finland, 'SAS-Finnair' would mainly feed CPH I guess.
A national airline is always in a love-hate situation in her home country, though AY is coming less depended on Finnish customers.
Chinese cookie in SFO: "You're doomed to a life of forever travelling abroad and to be able to afford it!"

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