Finnish Flag Carrier Cuts 150 Managerial Jobs Following Closure of Russian Airspace

The airline said it was “deeply sorry” to fire staff described as “committed professionals”, yet called the move “difficult but necessary” to restore profitability. Earlier, the company’s plans to cut another 450 cabin crew members resulted in a massive strike, with around 100 flights canceled.

Finnish national flag carrier Finnair has announced its decision to cut around 150 white collar jobs, as a result of negotiations with employee groups.

Earlier this autumn, the firm said it planned to cut up to 200 jobs as part of its profitability plan. Among other reasons, the company cited the closure of Russian airspace as necessitating drastic changes in its operations, forcing it to take long detours for once-lucrative Asian flights and even suspend some of the routes. This painful blow exacerbated the aftershocks of the COVID-19 pandemic, where hundreds of flights were canceled as restrictions kept the air traffic grounded.

Finnair CEO Topi Manner called the employees “committed professionals” and said he was “deeply sorry” to take the measures to restore profitability, which he called “difficult but necessary.”

The company pledged to launch a coaching and training program for the fired employees to find new jobs.

Previously, Finnair’s plans to pink-slip another 450 Finland-based cabin crew members (over a quarter of its entire cabin staff) led to a massive 24-hour strike that resulted in the cancellation of around 100 flights. The Finnish Transport Workers' Union (AKT) announced the strike after the airline voiced plans to subcontract in-flight service staff on its Thailand and US routes as part of the broad cost-saving effort.

The aftermath of the strike may last well after Monday, because some of the canceled long-haul flights will not be returning as planned originally.

Headquartered in Vantaa and using Helsinki Airport as its hub, Finnair is the largest airline in Finland and one of the oldest in continuous service in the world, dominating both domestic and international air travel in Finland. Its major shareholder is the government of Finland.

After the EU, the UK, and Canada banned Russian aircraft from their borders over the conflict in Ukraine, Moscow responded in kind by closing its airspace to dozens of countries involved in a retaliatory move. No timeline has been offered as to when the ban might end. However, the effect on commercial airlines is significant, as Russian airspace is the main corridor of travel between Europe and East Asia.

As one of Russia’s direct neighbors, Finland has been badly hit by jumping on the EU sanctions bandwagon. Earlier this year, Finnish Customs said that the effect of the EU's sanctions against Moscow, meant as “punishment” for its special operation in Ukraine, had done more damage to trade between Finland and Russia than the collapse of the Soviet Union in 1991.

In the post-Soviet years, lively cross-border cooperation and vivid tourism from Russia have become the pillar of the economy in numerous communities in eastern Finland. However, the self-imposed restrictions robbed the Finnish communities of millions of euros in lost revenues.