=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/03/24/f= inancial0919EST0023.DTL ---------------------------------------------------------------------- Monday, March 24, 2003 (AP) Finnair to shed 1,200 jobs in cost-cutting move (03-24) 10:20 PST HELSINKI, Finland (AP) -- Finnair said Monday it will eliminate about 1,200 jobs, or 11 percent of its work force, in a bid to cut costs as the carrier tries to improve its profitability. The cuts will take effect through 2005. The Helsinki-based airline said = it has started discussing the cuts with union leaders at the company, which currently employs 10,800. Approximately 200 jobs will be cut in its travel agency arm, and another 1,000 jobs will be eliminated in its other business units. Chief executive Keijo Suila cited the effect of the war and oil prices, along with a reduced number of passengers, for the cuts which are expected to reduce costs by 160 million euros ($169.3 million). "The change in the market situation requires the improvement of the group's competitiveness by sustainable and permanent means," he said. "Streamlining the cost structure is a prerequisite for safeguarding Finnair's vitality in the future." Earlier this month, the airline said it would raise the price of its tickets on most flights by 5 percent because of growing expenses. In February, the airline reported a 13 percent increase in fourth-quarter sales and posted a profit of 6.2 million euros ($6.5 million). Founded in 1923, Finnair is one of the world's oldest airlines. The government owns 58 percent of Finnair which flies to 50 destinations worldwide with a fleet of 60 aircraft. Finnair is a member of the OneWorld alliance which includes American Airlines and British Airways. Last year, 7 million passengers flew Finnair, down from 7.5 million in 2001. On the Net: Finnair: www.finnair.com =20 ---------------------------------------------------------------------- Copyright 2003 AP