Finnair Threatens to Lay Off Dozens of Pilots
Finnair has announced potential layoffs affecting dozens of long-haul pilots amid ongoing industrial action and stalled negotiations over working conditions and wages. The Finnish airline is currently in discussions with its pilots regarding a new collective agreement, but significant disagreements remain, particularly concerning standby obligations.
The airline wishes to maintain standby obligations for pilots as part of the collective agreement, while the pilots are advocating for this clause to be optional. As negotiations have reached a standstill, pilots have initiated industrial action, including an overtime ban, which has further complicated the situation.
In response to these developments, Finnair has begun restructuring negotiations that could involve up to 90 pilots, potentially leading to temporary furloughs or permanent dismissals. Currently, Finnair employs approximately 1,000 pilots.
The announcement of possible job cuts comes as Finnair considers the early termination of its partnership with Qantas, the Australian airline. Finnair has leased two Airbus A330 wide-body aircraft along with crews to Qantas for a two-year period due to a lack of demand for these aircraft on Finnair routes, a situation exacerbated by the ban on Russian airspace.
The first aircraft and crew began operating for Qantas in October 2023, with the second aircraft following in early 2024. These aircraft are currently servicing routes from Sydney to Bangkok and Singapore, providing employment for 90 Finnair pilots.
However, the ongoing industrial action by the Finnish Pilots’ Association (SLL) has now extended to include flights to Australia, jeopardizing the reliability of joint operations with Qantas. If the situation does not improve, one possible outcome could be the early termination of the crew-leasing agreement.
Under the current arrangement, the crew-leasing deal is set to last until March 2026. After this period, Qantas plans to continue leasing the aircraft but will operate them with its own pilots, which could further impact Finnair's pilot workforce.
Finnair's potential layoffs of long-haul pilots highlight the challenges facing the airline amid ongoing negotiations and industrial action. The situation is further complicated by the airline's partnership with Qantas, which may be at risk due to the pilots' actions. As negotiations continue, the future of both the pilots and the crew-leasing arrangement remains uncertain, emphasizing the need for a resolution to the ongoing disputes.