The airline said 130 flights were cancelled to prepare for the impending strike that would have "paralyzed" its traffic for some two weeks. It said Friday it was making alternative arrangements for passengers, with normal traffic expected to resume "within a few days."
Unions and airline representatives said the strike threat was called off after both sides accepted a last-minute mediation proposal by the national conciliator on Friday morning. They gave no details.
Struggling against high costs and tough competition from budget airlines, Finnair PLC has embarked on a savings program of 260 million euros ($350 million), including substantial job cuts.
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