Finnair has signed an engine and component support deal with SR Technics after the airline revealed in April that it will close its in-house overhaul shops and outsource the work to the Zurich-based MRO provider.
Around 80% of Finnair's 350 engine and component maintenance staff will be made redundant from September. Negotiations with unions and personnel representatives were completed on 12 June, the airline says.
The 10-year agreement with SR Technics covers all CFM International CFM56 engine support for Finnair's Airbus A320s and A340s as well as component MRO for all Airbus and Embraer types. The powerplant work is starting this month, with component maintenance to follow in September.
Finnair currently plans to retain 70 engine and component specialists in Helsinki to provide line maintenance support. However, approximately 75 of the 280 planned redundancies could be averted if Finnair succeeds in selling part of its engine operations.
The airline says negotiations are ongoing with a potential buyer for the division. Should an agreement be reached, it would not affect the carrier's in-house line maintenance operations, Finnair adds.
The carrier has also sold and leased back spare engines, parts and other "tangible assets" to Sanad Aero Solutions - SR Technics's equipment leasing sister company within the Mubadala MRO network - as part of the contract.
The exclusive cooperation with the airline is "a cornerstone deal for SR Technics," says André Wall, the MRO company's president.