Friday 12/4/20
RECESSION

Finavia to cut 480 jobs after state granted 350 million euro aid

The company has launched a plan aiming to save 200 million euros, of which staff reductions are a part.

Helsinki airport and air traffic control tower. Photo: Finavia.
Helsinki airport and air traffic control tower. Photo: Finavia.

The Finnish air traffic sector continues to deliver bad news. And incidentally, sending more people to the unemployment lists.

The state-owned airport operator (Finavia) and its ground and passenger services subsidiary Airpro announced codetermination talks on Friday to cut 480 jobs and continue with the furloughs initiated in March. Employees have been laid off both part-time and full-time in both companies.

The company launched a savings program at the beginning of the coronavirus crisis and claims to have made "big cost cuts" since then. Its goal is to save 200 million euros by 2023, of which staff reductions are a part.

Finavia's announcement comes a week after the government announced a budget allocation of 350 million euros to recapitalize the company and counteract the devastating effects that the coronavirus pandemic is having on the air transport sector.

According to preliminary estimates, Finavia will cut its staff by a maximum of 130, while its subsidiary Airpro will reduce its workforce by 350.

Talks to start in November

"The aviation and tourism industry is in unprecedented economic distress. Air traffic has almost completely stopped, which is why our income has dropped significantly. We need to adapt Finavia's operations and prepare for the fact that the return of travel to normal will take several years", Finavia's CEO Kimmo Mäki said in a press release.

Codetermination talks are scheduled to begin on 4 November.

Finavia operates 21 airports in Finland, while Airpro provides cabin services for several companies, serving 16 airports, including Helsinki Airport.
 

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