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Finnair

IATA Code
AY
ICAO Code
FIN
Corporate Address
Finnair Plc
Tietotie 11 A (Helsinki Vantaa Airport)
01053 FINNAIR
Website
http://www.finnair.com
Main hub
Helsinki-Vantaa Airport
Country
Finland
Business model
Full Service Carrier
Network
Domestic | International
Airline Group
Part of Finnair Group
Alliance
oneworld
Joined Alliance
1999
Association Membership
AEA
IACA
IATA
TIACA
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Aeroflot
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airberlin
American Airlines
Austrian Airlines
Bangkok Airways
Belavia
British Airways
Cathay Pacific
CSA Czech Airlines
Flybe
Iberia
Icelandair
Japan Airlines
Malaysia Airlines
Malmo Aviation
NIKI
Qantas Airways
S7 Airlines
SriLankan Airlines
TAP Portugal
US Airways

The national carrier of Finland, Finnair is based in Helsinki and is majority-owned by the Finnish government. The airline and its subsidiaries dominate the domestic and international air travel market in Finland. Finnair’s network includes regional services within Finland and Scandinavia as well as flights to Europe, Asia, United States and Canada. Finnair is a member of the oneworld alliance.

Location of Finnair main hub (Helsinki-Vantaa Airport)

Finnair share price


 
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1,356 total articles

and

109 total articles

and

CAPA Outlook 2015: Western Europe - Uncertain impact of lower fuel prices to determine the outlook

19-Feb-2015 3:43 PM

The economic backdrop in Western Europe was sluggish in 2014 and remains fragile into 2015. In particular, the eurozone nations continue to struggle to recover fully from the global recession. A Jan-2015 poll of economists conducted by the Financial Times suggests that most experts expect GDP growth in the eurozone to be around only 1% in 2015. 

This is a little better than 2014, but well short of the cyclical peak growth rates in excess of 3% that have not been seen since 2007.

For 2015, the two most important strategic issues facing Western Europe’s legacy airlines, particularly the Big Three flag carrier groups, will be restructuring in their core businesses and maximising their low-cost vehicles.

Finnair: net losses are a hard habit to kick. 2014 cost cuts wiped out by falling revenue

12-Feb-2015 5:45 PM

Finnair's net loss for 2014 was its first since 2011, but its fifth in the seven years since 2008. Over the past decade or so, losses have been more common than profits. Its niche in connecting Europe with Asia via Helsinki has placed Finnair among Europe's top twenty airline groups, although Finland ranks outside the top twenty countries by population.

But converting this niche into sustainable profitability is proving a major challenge. Whenever Finnair makes progress with cost reduction (and it has made major strides with labour productivity), it seems that revenue pressures wipe out those benefits. In 2015, Finnair anticipates a further drop in unit revenue, reflecting the highly competitive nature of its markets.

This year will also present opportunities for Finnair to build a more solid base. It will be the first full year under new labour agreements and with a number of product improvements in place. It will also see its first A350 delivery. Lower fuel prices are a stroke of luck, but Finnair needs to ensure it can be profitable without relying on this good fortune.

Air Canada SWOT: Working towards sustainability, but familiar foes await - along with some new ones

9-Jan-2015 9:53 PM

Air Canada during the last couple of years has worked diligently to repair its balance sheet, improve its leverage and reduce costs; as a result it is now beginning to enjoy some of the fruits of its labour by meeting its return targets and sustaining liquidity well above its minimum threshold.

The Canadian flag carrier has also undertaken a network revamp that includes the creation of its low cost subsidiary rouge and a push into long-haul international markets, leveraging its position as Canada’s leading global airline.

But Air Canada faces challenges as it works to sustain profitability from its familiar foe WestJet, as well as potential new entrants eager to execute the ULCC model within Canada. The airline will no doubt have focussed on these threats, and be aware there is still much to prove as its efforts to transform its business continue.

This CAPA analysis of Air Canada's strengths, weaknesses, opportunities and threats continues a series on global airlines.

Gulf 'Year of the Fleet' as Qatar Airways receives A350/A380 and Etihad Airways its A380/787

28-Dec-2014 6:00 PM

The very end of 2014 was one of the most important parts of the year for Gulf airlines as they received new aircraft: the world's first A350 for Qatar Airways, which took its first A380 a few months prior, while Etihad received its first A380 and 787-9. These are more than just new toys: they bring improvements both operationally and customer-facing. The Gulf has been building up high-end premium products and the new aircraft cement the region's position of offering some of the best, if not the best, products.

Gulf airlines once sold on the basis of price and often convenience. As they expand their networks and build frequencies they are now moving into higher-end premium cabins, strengthening loyalty programmes, constructing new terminals and airports and have hubs with an increasing number of local activities for a stopover. Meanwhile in the old world airports are becoming more constrained, politicians remain ineffective and uninterested and legacy airlines are slow to invest while facing unpredictability from staff strikes. This brings a change to Gulf carriers that is actively welcomed by passengers; but protectionist rhetoric and use of regulatory constraints is increasing.

Flybe: a niche occupied by few other airlines, but still with a unit cost disadvantage

9-Dec-2014 3:30 PM

At its Capital Markets Day in late Nov-2014, Flybe asserted that it "does not compete with low cost carriers, flag carriers or mid-haul leisure airlines". Moreover, our analysis shows that it rarely competes with other regional airlines. In fact, Flybe faces no competition of any kind on 78% of its city pair routes in its Dec-2014 schedule. Moreover, it is Europe's largest independent regional airline and Europe is the world's largest regional market.

In spite of these advantages and what looks to be a relatively efficient cost base by comparison with other European regional airlines (according to our analysis), Flybe has yet to re-establish sustainable levels of profitability. Much has been achieved since the change of senior management in 2013, but the regional airline's fundamental CASK disadvantage will remain a challenge even as it increases its focus on turboprops rather than regional jets.

Europe's airlines: 1H2014 results season shows improving trend, but cost reduction is the key driver

7-Sep-2014 11:28 AM

Europe's airlines appear to be following a course to improved profitability, based on the 1H2014 results of the largest publicly quoted airline groups. Profits remain slender in most cases, but margins are improving in aggregate. Individually, financial performance varied widely, with LCCs both leading (Ryanair) and lagging (Norwegian) the operating profit margin rankings in 1H2014.

The European market offers volume growth, but is characterised by price pressure, with RASK falling for the majority of the larger airline groups and this points to the need for additional caution in capacity growth. The LCCs collectively enjoyed higher growth than the FSCs in 1H2014 and also achieved a more stable RASK performance (although not in all cases).

Profit improvement is largely being achieved through cost savings and CASK reduction. Although fuel prices are high on a longer term historic perspective, they are enjoying a period of relative stability and this has helped the cost picture. Although Europe's airline sector remains only thinly profitable, these 1H results hold out the prospect of better full year results in 2014 versus 2013.

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