Strike Hits Finnair Flights

HELSINKI (AP) — Finland's Finnair PLC canceled some 20 flights Tuesday as ground staff extended a walkout to protest the outsourcing of some cargo and baggage handling services and the transfer of 620 personnel.

About 2,000 passengers were hit by the cancellations, mostly of domestic flights and a few European destinations, Finnair said. No long-haul traffic was affected.

The walkout, by some 1,000 workers, was prompted by the national carrier's announcement Monday that it will transfer operations of its ground handling subsidiary Northport and 490 employees to Barona Group. It also said that 130 warehouse employees in Finnair Cargo Terminal Operations would move over to Suomen Transval Oy.

Some 400 striking personnel returned to their jobs on Tuesday morning as planned, but it was unclear how long others would continue the protest action, Finnair said.

Two weeks ago, Finnair pilots held a two-day strike to protest a proposed labor contract that included outsourcing. That action grounded 500 international and domestic flights and affected 40,000 passengers. The airline said it lost some euro3 million ($4.5 million) a day during the strike.

Finnair has been struggling in the recession with declining demand, competition from budget airlines and overcapacity. It has warned of more cuts this winter after slashing capacity by 12 percent in October.