Finnair CEO Jukka Hienonen resigns; new co-determination talks imminent

According to a press release issued by Finland’s national airline Finnair today (Friday), the company’s President & CEO Jukka Hienonen has resigned from his position.
      ”My four years in Finnair's service have included both periods of success as well as the increasingly adverse development of the entire sector, and now a clear change of course is required. I am not satisfied with the results achieved; the rate of change has been insufficient”, says Hienonen.
      Moreover he says that he is not satisfied with some personnel organisations’ unwillingness to adapt to the profound changes required in the present competitive environment.
     
On Friday, Finnair also announced that the company is to initiate a new round of statutory co-determination negotiations in August or September. According to Hienonen, the airline industry is facing its deepest crisis, while the savings achieved by the previous cost-cutting programme were not sufficient.
     
On Friday Finnair posted its interim report for the second quarter, showing a pretax loss of EUR 35.3 million, down from a profit of EUR 18.5 million in the corresponding period in 2008.
      The company's turnover fell in the second quarter by 21.6 per cent to EUR 427.4 million.
      Finnair’s Board of Directors regrets Jukka Hienonen’s resignation, while Christoffer Taxell, the Chairman of the Board, reports that the decision is entirely CEO Hienonen’s own, adding that he was sorry to hear about his decision, because cooperation between Jukka Hienonen and the board has always been excellent.
      Jukka Hienonen will continue as President & CEO for the time being. The period of notice in Hienonen’s contract is six months.
      Because Hienonen resigned at his own request, no severance pay will be forthcoming.


Previously in HS International Edition:
  Threatened Finnair strike cancelled for the time being (9.3.2009)

See also:
  Finnair plans extensive outsourcing to make up for financial losses (29.4.2009)
  Finnair announces new drastic cost-cutting measures (8.6.2009)

Links:
  Finnair Plc Press release Finnair´s President & CEO resigns (7.8.2009)
  Finnair Plc Press release Finnair´s second quarter clearly loss-making (7.8.2009)
  Finnair Group