The Finnish Government has committed to reducing its stake in Finnair in the spring of 2019 in connection to an incentive plan thrashed out by the airline and the Finnish Air Line Pilots' Association (SLL).
The Government will, regardless, remain the majority shareholder in Finnair, with a stake of 53.5 per cent instead of the current 55.8 per cent.
The roughly 700 pilots employed by Finnair have agreed to cut their wages and other benefits by a total of 17 million euros a year. In exchange, they will be entitled to a cash reward under the incentive plan provided that the preconditions imposed on the plan are met.
If the cost cuts are materialised and the share price of Finnair is a minimum of four euros in 2019, the pilots will be entitled to a cash reward of a total of 12 million euros. If the share price stands at eight million euros, the amount paid to the pilots will be 24 million euros.
The rewards would be equivalent to 5—10 per cent of the basic pay of pilots over four years, according to the airline.
Juhani Saarinen – HS
Aleksi Teivainen – HT
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Photo: Heikki Saukkomaa / Lehtikuva