Finnair reaches deal with cabin staff

Finnair and the Finnish Flight Attendants Assn. reached a labor stabilization agreement valid from Oct. 1 through Dec. 31, 2010, covering the €12.3 million in cost cuts targeted by the airline. Among the terms are a 5% salary cut during the period and cancellation of incentive bonuses. The deal also includes a "pay-back" stipulation depending on Finnair's 2010 and 2011 results. The carrier said the terms "are not easy, but they are necessary. . .We reached an outcome by which redundancies will be avoided."