INCENTIVE PLANS FOR KEY PERSONNEL

Remuneration scheme for key individuals
Matters relating to the remuneration scheme of key individuals are prepared in the Board of Directors' Remuneration and Appointments Committee. Decisions are made by the company's Board of Directors. Management incentive bonuses are determined annually based on the company's adjusted EBIT (i.e. excluding capital gains, non recurring arrangement expenses and changes in fair value of derivatives), return on capital employed, business-unit quality and process indicators as well as personal performance appraisals. The bonus can be equivalent at most to 40 per cent of the early basic salary.

The 2007-2009 share bonus scheme included around 70 key individuals of the Group. The number of granted shares in the share bonus scheme is based on return on capital employed and earnings per share, whose target levels are decided annually by the Board of Directors. The shares bonuses are covered by restrictions on sales.

Finnair Plc's share-based incentive scheme 2007-2009
The Board of Directors of Finnair Plc approved a new share bonus scheme 2007-2009 on 22 March 2007. In the share bonus scheme, key individuals have the possibility of receiving shares as bonus for a three-year performance period according to how targets set for the performance period have been achieved. In addition, the proportion payable as cash is 1.5 times the value of the shares.

The Board of Directors decides annually the targets to be set for each performance period. The targets are determined on the basis of the Finnair Group's financial development. Achieving the targets set for the performance period determines how large a proportion of the maximum bonus will be paid. In a three-year period, the total of the three years' share bonuses, however, can be at most a sum corresponding to three years' gross earnings.

For the 2007 performance period, share bonuses will be paid if Finnair Group earnings per share (EPS) exceed 0.70 euros and the return on capital employed (ROCE) is more than 8 per cent. The bonuses is payable in full if EPS is at least 1.20 euros and ROCE at least 14 per cent. Between these values the bonus is determined linearily. The Board of Directors allocated 398,787 shares to key individuals in 2007. The actual outcome of the share-based incentive scheme in 2007 was about 94per cent of the maximum. Total of 9.0 million euros of share-based payable liabilities are booked in the financial statement 31 December 2007.

Finnair Plc's share-based incentive scheme 2004-2006
The Board of Directors of Finnair Plc approved a share bonus scheme 2004-2006 on 18 June 2004. In the share bonus scheme, key individuals have the possibility of receiving shares as bonus for a three-year performance period according to how targets set for the performance period have been achieved. In addition, the proportion payable as cash is 1.5 times the value of the shares.

The Board of Directors decides annually the targets to be set for each performance period. The targets were determined on the basis of the Finnair Group's financial development. Achieving the targets set for the performance period determined how large a proportion of the maximum bonus was paid.

For the 2004 performance period, share bonuses amounting to 9 per cent of the maximum bonuses were paid, i.e. the share based portion totaled 37,800 shares (6.30 euros/share). For the 2005 performance period, share bonuses amounting to 86 per cent of the maximum bonuses were paid, i.e. the share-based portion totaled 383,097 shares (12.20 euros/share). For the 2006 performance period share bonuses were not paid as the targets were not achieved.

Share bonus for the Executive Board in 2004-2007