Finnair PLC said it will outsource some services, including cargo and transfer 620 personnel as the struggling airline strives to cut costs amid the recession which has hit the air industry hard.

The Finnish national carrier said it will transfer operations of its ground handling subsidiary Northport and 490 employees to Barona Group, and 130 warehouse employees in Finnair Cargo Terminal Operations to Suomen Transval Oy.

“We are seeking more efficiency for our business,” Finnair deputy CEO Lasse Heinonen said. “By creating solutions based on strategic partnerships, we can change our fixed costs into variable costs and focus on Finnair’s core business.”