RENEWAL OF THE FINNAIR FLEET CONTINUES

Five MD-80 aircraft sold

The renewal of the Finnair fleet for European operations continues. Finnair has decided to order one additional Airbus A320 aircraft for delivery in February 2002. The Company already operates eight aircraft of the Airbus A320 family. Four additional aircraft will be acquired by the end of 2001 and the Company has ordered a further seven Airbus A320 aircraft for delivery in 2002 and 2003.

Finnair has sold two MD-87 aircraft to an Irish company called Timperley Limited and three MD-82/83 aircraft to subsidiaries of the US company, Pegasus Aviation, Inc. The transactions totalled approximately EUR 60 million. Gains from the sales amounted to EUR 26 million, of which EUR 14 million were included in net earnings for the final quarter of the last fiscal year ended December 31, 2000 and EUR 12 million in net earnings in the current quarter of the 2001 fiscal year. On 1st January 2001 Finnair changed its fiscal year to be a calendar year and thus fiscal year 2000 will be only 9 months.

The MD-82/83 aircraft sold, which were manufactured in 1989 and 1990, have been leased back to Finnair for periods between 9 and 15 months. They will be replaced by aircraft in the Airbus A320 family after the leases expire.

The sales are part of the strategy by which MD-80 aircraft operated by Finnair will be replaced with Airbus A320 aircraft acquired for European traffic. Funds obtained from the transactions will be used to finance acquisitions of Airbus A320 aircraft.

The short-term leases now concluded raise the number of leased MD-80 aircraft to fifteen. The Finnair MD-80 fleet also includes two aircraft acquired with a financial lease and four owned outright by the Company. The above leases will increase Finnair's capacity to adapt to fluctuations in demand and ensure orderly disposal of the MD-80s.