| 7. OTHER OPERATING EXPENSES | | |
| | 1.1. - 31.12. | 1.1. - 31.12. |
| | 2005 | 2004 |
| | | |
| Materials and tjänster | 709.8 | 608.3 |
| Personalkostnader | 495.8 | 435.5 |
| Other kostader | 536.0 | 529.4 |
| Total | 1,741.6 | 1,573.2 |
| Breakdown of expense categories | | |
| Materials and services | | |
| Materials and supplies for aircraft maintenance | 27.7 | 21.3 |
| Ground handling and catering charges | 134.0 | 129.0 |
| Fuels for flight operations | 292.7 | 212.5 |
| Expenses for tour operations | 102.0 | 94.0 |
| Aircraft maintenance and servicing | 55.0 | 46.3 |
| Data administration services | 57.9 | 68.4 |
| Other items*) | 40.5 | 36.8 |
| Total | 709.8 | 608.3 |
| * Consists of several items, none of which are individually significant. | | |
| Personnel expenses | | |
| Wages and salaries | 386.8 | 362.7 |
| Pension expenses | 65.6 | 39.7 |
| Other social expenses | 43.4 | 33.1 |
| Total | 495.8 | 435.5 |
| Salaries and bonuses of Chief Executive Officer, EUR | | |
| and Members of the Board of Directors | | |
| Chief Executive Officer | 831,202 | |
| Keijo Suila | | |
| Deputy Chief Executive Officer | 243,866 | |
| Henrik Arle | | |
| Members of the Board of Directors | 45,055 | |
| Chiristoffer Taxell | 27,300 | |
| Kari Jordan | 12,255 | |
| Samuli Haapasalo up to 22.6.2005 | 25,200 | |
| Markku Hyvärinen | 23,800 | |
| Veli Sundbäck | 25,049 | |
| Helena Terho | 25,200 | |
| Kaisa Vikkula | | |
| Personnel incentive scheme | | |
| The Group operates an incentive scheme based on a balanced scorecard, defined separately for each business unit, which covers most of the Finnair Group's employees. The total amount of bonuses in 2005 was 9.8 million euros (previous year 2.6 million euros). | | |
| Transfer to Personnel Fund | | |
| The Finnair Group has a profit bonus scheme, which allows employees to participate in a profit bonus payable on the basis of the Group's result and return on capital employed. A profit bonus is paid into a Personnel Fund, which is obliged to invest part of the bonus in Finnair Plc's shares. Other staff costs include 7.6 million euros of profit bonus (previous year 0.5 million euros). | | |
| Social expenses | | |
| Pension expenses - defined contribution schemes | 48.6 | 41.7 |
| Pension expenses - defined-benefit schemes, statutory | 8.3 | 17.9 |
| Pension expenses - defined-benefit schemes, voluntary* | 8.2 | -20.0 |
| Other defined-benefit expenses | 0.5 | 0.1 |
| Other social expenses | 43.4 | 33.1 |
| Total | 109.0 | 72.8 |
* The level of pension expenses for 2004 was lowered by a change in the Pension Fund rules and an amendment to the Employee Pensions Act. The combined effect of the rule change and the amendment of the Employee Pensions Act was a non-recurring improvement in the result of more than 20 million euros. | | |
| Management pension benefits | | |
| The pension schemes of the parent company's President & CEO and members of the Board of Management as well as those of the managing directors of subsidiaries are individual schemes, and the retirement age under these agreements varies from 60 to 65 years. All of the management pension schemes are defined-contribution schemes. | | |
| Other operating expenses | | |
| Lease payments for aircraft | 88.5 | 88.9 |
| Rental of cargo capacity | 18.6 | 15.0 |
| Other rental of flight capacity | 17.9 | 9.3 |
| Office and other rents | 32.7 | 37.8 |
| Traffic charges | 159.1 | 148.4 |
| Sales and marketing expenses | 95.5 | 107.8 |
| Other items*) | 123.7 | 122.2 |
| Total | 536.0 | 529.4 |
| * Consists of several items, none of which are individually significant. | | |