Finnair’s 2011-2014 savings program, combined with reduced fuel costs and improved sales, has seen the carrier’s performance follow an upward path for the last two years. The announcement of Finnair’s forthcoming strategy for accelerated growth will require sustainability in profitability in what is an unstable market and consequently, the carrier has reviewed its efficiency once again and has set itself a target of €20 million in permanent savings on operational costs by June 2017.
According to Pekka Vauramo, Finnair CEO, “In order to be able to invest in growth and continue on our chosen path, we must ensure that our unit costs continue to decline. With that in mind, we are now proactively taking steps to deliberate together with our personnel about the measures we could utilize to improve our result and sustain the preconditions for the implementation of our growth strategy.”
Finnair anticipates finalizing plans for the main areas of cost-cutting exercises over the next couple of months.
Headquartered in Helsinki, Finland, the carrier’s geographical location gives it a competitive advantage where specializing in both passenger and cargo traffic between Europe and Asia as many carriers fly over the country when operating between major cities in the two regions. Finnair is the sole Nordic carrier with a 4-star Skytrax ranking and is also a member of the oneworld alliance. For the financial year 2015, Finnair’s revenues amounted to €2,255 million with a staffing level of 4,800 personnel at the year-end. (€1.00 = US$1.13 at time of publication.)
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