Finnair to move forward with restructuring

Finnair said it is proceeding with a restructuring that aims to achieve greater efficiency and save costs.

The airline is in somewhat of a transitional state after President and CEO Jukka Hienonen announced his resignation following its fourth consecutive quarterly net loss (ATWOnline, Aug 10), but he is staying in the post for the time being and the restructuring is slated to move forward.

The company's business activities will be divided into five operational entities from Oct. 1: Commercial Operations, Production, Customer Service, Travel Services and Aviation Services, which comprises Finnair Catering, Finnair Technical Services and ground handling company Northport Oy as well as cargo entities.

Finnair's scheduled passenger traffic and leisure flight operations will be combined into an integrated flight traffic organization, coming under the direct responsibility of the president and CEO. Management of administrative support functions will be centralized from the units into group administration, and resources management and long-term operational planning will be transferred to group administration.

"In the coming weeks, a detailed review of the units and departments belonging to each area will be completed," the company said in a statement. It did not indicate how many jobs may be cut.