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- Finnair Plc
Tietotie 11 A (Helsinki Vantaa Airport)
- Main hub
- Helsinki-Vantaa Airport
- Business model
- Full Service Carrier
- Domestic | International
- Joined Alliance
- Association Membership
- Codeshare Partners
CSA Czech Airlines
Rossiya - Russian Airlines
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 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
1,074 total articles
93 total articles
After three years of widening full year losses, Flybe has reported a return to pre-tax profits in 1HFY2014. The Group’s new CEO Saad Hammad joined in Aug-2013, when long-serving CEO and Chairman Jim French became non-executive Chairman. The break with the past was completed on 5-Nov-2013, when Mr French was replaced as Chairman by Simon Laffin, whose experience includes real estate, retail, media and financial services.
Mr Hammad, a former CCO at easyJet and non-executive director at Air Berlin plc, has immediately increased the targeted benefits under the Group’s restructuring plan, recognising that its previous goals would not be enough. In terms of market presence, Flybe has a strong niche in UK regional markets and a small, but growing, foothold in contract flying in mainland Europe.
However, its cost base remains uncompetitive and Mr Hammad may need to drive out even more cost if he is to realise his aim to make Flybe “the best local airline in Europe”.
Finnair celebrates its 90th birthday on 1-Nov-2013, making it one of the world’s oldest airlines. It also has one of the newest CEOs, Pekka Vauramo, who joined on 1-Jun-2013.
Finnair’s strategic niche is based on using its Helsinki hub to connect Europe with Asia. While it saw traffic growth and market share gains in both regions in 3Q2013, the weakness of the yen led to a collapse in Asia revenues. The approval on 16-Oct-2013 of Finnair’s application to join the BA/JAL revenue-sharing joint venture on routes between Europe and Japan could not have come at a more opportune moment. The resulting coordination of pricing and schedules should help to counter revenue weakness.
Nevertheless, the fall in Finnair’s 3Q2013 profits and its consequent profit warning for the full year highlight the scale of the challenge facing Mr Vauramo. Although Finnair achieved a further reduction in unit costs, he will need to push through more cost cuts, while simultaneously seeking to shore up unit revenues.
Etihad has launched services to Ho Chi Minh, becoming only the tenth non-Asian airline serving Vietnam. Abu Dhabi is now one of only seven destinations outside Asia-Pacific that are served non-stop from Vietnam.
Vietnam remains an under-served long-haul market with huge potential. But Gulf carriers have been quick to recognise the opportunities in Vietnam and are now among Vietnam’s largest international carriers.
Etihad follows rival Emirates, which launched services to Ho Chi Minh in Jun-2012. Qatar began serving Ho Chi Minh in 2009 and added Hanoi in late 2010. It is now Vietnam’s third largest foreign carrier.
Finnair’s operational result fell by EUR10 million in 2Q2013 compared with the same period of 2012. Moreover, the carrier lowered its full year revenue outlook from expected growth to “approximately at the 2012 level”, due to the weak Japanese yen. Nevertheless, there are also some more positive signs for new CEO Pekka Vauramo, who joined on 3-Jun-2013.
First, without the impact of its fuel hedging programme, Finnair's operational result would have improved by EUR12 million. Second, its strategic focus on carrying passengers between Europe and Asia was reflected in strong traffic growth and market share gains in these two regions. Third, Finnair’s cost reduction programme reached its EUR140 million savings target six months ahead of schedule and the company remains committed to achieving a further EUR60 million in savings by 2014, mainly through labour productivity improvements.
This is the second in a three part series of reports on the Southeast Asia-Western Europe market. The first part analysed the position of Southeast Asian carriers as Philippine Airlines (PAL) and Garuda Indonesia prepare to join four peers in operating non-stop flights to Europe. This part looks at the position of European carriers, where there also has been a new entry along with expansion by some of the existing carriers.
Norwegian became the eighth European carrier and first LCC to serve the Southeast Asian market in Jun-2013, when it launched services to Bangkok from Oslo and Stockholm. Norwegian brings a return of low-cost services to the Asia-Europe market following the withdrawal of AirAsia X, which dropped its A340-operated London and Paris routes in Mar-2011. AirAsia X is now focusing on routes within the Asia-Pacific region and flights of less than nine hours, using A330-300s.
Norwegian has big ambitions for Southeast Asia and is preparing to open a base at Bangkok which could support additional flights to Europe. But for now Norwegian's main focus is on more rapid expansion in the North Atlantic, where flights are shorter and potentially more conducive to the long-haul low-cost model.
Finnair's pending entry to the British Airways-Japan Airlines Europe-Japan joint venture will give a much needed boost to the oneworld-led JV, whose share of the Europe-Japan market will increase from 16% to 23.5%. The JV encompassed European connections from British Airways, but the large point-to-point nature of the London-Tokyo market as well as the backtracking involved at Heathrow provided the JV its strongest hold between Japan and the UK.
A similar Star Alliance-led Europe-Japan JV was anchored by All Nippon Airways and Lufthansa, accounting for a quarter of the market. The addition in 2012 of fellow Lufthansa Group carriers Austrian and SWISS has boosted the JV's share 32.5%. Beyond market share, the Star JV was more effective at offering connections around continental Europe.
Finnair's addition is also a tidy conclusion to the flirtation between Finnair and JAL, which in Jul-2013 launched its own Tokyo-Helsinki service and wanted to tap into Finnair's geographically convenient hub. The closer ties between Finnair and BA follow Finnair's addition into the trans-Atlantic JV and BA's increasing admiration for Finnair's Asian strategy. There may be more to come from this relationship.
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