Finnair board approves 'new vision' for carrier, updates strategic targets

Finnair board of directors approved (07-May-2015) a "new vision" for the carrier as part of its annual strategy review, with the company updating its strategic targets as follows:

• Double Asian traffic by 2020 from the 2010 level;
• Deliver a unique customer experience and achieve world-class operations;
• Create shareholder value.

In order to achieve the above objectives, the board approved six "strategic implementation areas" for the period 2015-2017:

• Intercontinental growth with Northeast Asia focus;
• Customer excellence;
• People and Finnair culture;
• Digitalisation;
• Funding and capital structure;
• World-class operations.

The carrier also updated its financial objectives as part of the review, with an increase in the target level of adjusted gearing rom a maxumim of 140% to a maximum of 175%. Finnair maintained its exisiting objectives of an EBIT margin of 6% over cycle, EBITDAR margin minimum of 17% over cycle and a ROCE minimum of 7%. Finnair stated: "The core of Finnair's strategy is taking advantage of the growing demand for traffic between Europe and Asia. The strategy is based on the growing markets in Asia, fast connections between Europe and Northeast Asia, quality service, and cost-efficient, punctual operations. Helsinki's geographical location provides Finnair with a natural competitive advantage, as the fastest routes between many destinations in Europe and megacities in Asia go through Helsinki. In implementing its strategy, Finnair is committed to creating added value for its customers and shareholders." [more - original PR - English/Finnish]