Finnair outsources engine & component services, fires up to 280

Traditional airliners continue to grapple for savings of face extinction. Finnair (OMXH: FIA1S) is certainly right in the middle of that task as it tries to secure its core operations. Today the Finnish flag carrier said it has reached a definite agreement to outsource its A320 and A320 engine services and Airbus and Embraer fleet component services to Swiss company SR Technics with a 10-year contract. Finnair expects considerable cost savings. The parties signed an MoU in April. Finnair will start employee negotiations with a maximum of 280 people losing their jobs out of the total of 350 currently working in the sector with Finnair. The company said it is in talks with a potential buyer on a possible sale of a part of the engine operations, which might save 75 jobs.