Published: 2010-09-09 08:06:00 CEST
Finnair Oyj
Company Announcement
FINNAIR PLC HAS SIGNED A PRELIMINARY AGREEMENT ON A CORPORATE TRANSACTION WITH FINNCOMM OY
FINNAIR PLC             STOCK EXCHANGE RELEASE  	9.9.2010   09.00

Finnair
Plc (Finnair) and Finncomm Oy (Finncomm) have, on 8 September 2010,
signed a
preliminary agreement firstly on the purchase of a 20 percent
minority
interest in Finnish Commuter Airlines Oy (FCA), which practises
Finncomm's air
traffic operations, and secondly on the acquisition of the
entire share stock
of the companies that own the Finncomm Group's 12 ATR
aircraft. 

It is the parties' intention to find, in addition to Finnair,
external
investors in FCA. Depending on the outcome of the investor
negotiations,
Finnair's ownership may rise from the 20 percent indicated in
the first-stage
transaction. 

The purchase price for the aircraft companies
is a preliminary EUR 38 million
(including debt). The purchase price of 20
percent of FCA is a preliminary EUR
10 million (including debt), which also
takes into account the possibility of
increasing ownership in FCA at a later
date. 

Negotiations between the parties on the detailed conditions of the
transaction
are under way. In addition to negotiations on the actual share
purchase and
shareholder agreements, the realisation of the transaction will
depend on the
fulfilment of a number of conditions, such as the result of a
due diligence,
the approval of Finnair's Board of Directors and Finncomm's
shareholders,
financing and security arrangements, and possibly on required
official permits.
The realisation of the transaction is therefore not yet
certain. 

Finnair assumes that the possible transaction will be finalised
and completed
during the final quarter of this year. 

Finnish Commuter
Airlines (FCA) is an airline mainly practising domestic
traffic, with which
Finnair has cooperated in feeder traffic for over ten
years. Finnair's
objective through the transaction is to safeguard
cost-competitive domestic
feeder traffic to its international route network. 

In 2009 the Finncomm
Group business operations' declared turnover was EUR 86.7
million (EUR 95.5
million in 2008) and the operating margin EUR 8.7 million
(EUR 16.4 million in
2008). Finncomm and subsidiaries involved in Finncomm's
business operations
have around 325 employees. 

In the arrangement, Finnair Plc's financial
advisor is Aventum Partners Ltd and
its legal advisor Roschier, Attorneys Ltd.


Finnair Plc
Communications

Taneli Hassinen
Vice President, Financial
Communications and Investor Relations
tel. +358 9 818 4976

Finnair Group
website: www.finnairgroup.com