TP Aerospace
AviTrader sponsorship ad

Finnair introduces new strategy to return to profitability

Finnair © AirTeamImages

Finnair’s strategy has long been based on connecting Europe and Asia via the short northern route, using Russian air space. Following Russia’s invasion of Ukraine and the subsequent closure of Russian air space, flight times to Finnair’s Asian destinations are now considerably longer, weakening the profitability of the company.

Finnair’s new strategy aims to return to profitability regardless of closed Russian air space. As Finnair is now faced with a different competitive situation and the weight of the different markets in Finnair’s business is changing, significant structural renewal is required to be competitive.

“The changes in our operating environment require a new strategy and significant renewal of Finnair, especially related to costs”, says Finnair CEO Topi Manner. “We have, however, an excellent foundation to build on: our excellent, differentiating product, strong safety culture, strong brand, our high-quality execution capabilities, our commitment to sustainability and our track record of adapting and renewing ourselves.”

Finnair’s new strategy focuses on building a competitive airline, with the target of reaching the pre-pandemic comparable EBIT level of at least 5% from mid-2024.

To reach the desired outcome, the support of all key stakeholder groups is needed. Strategy implementation starts now and it includes discussions with all key stakeholders on the changes that are needed for Finnair to be competitive. The unit cost reduction target covers all cost categories, including personnel costs. Finnair will start discussions with employees on, for example, adjustments in employment terms and will also evaluate other measures, such as route-specific outsourcing of cabin service, potential outsourcing of certain operational activities and actions to improve the efficiency of shared functions. Savings in other costs are sought through contract negotiations with suppliers, structural changes in operations, and optimisation of premises.  

During the past two and half years, Finnair has undergone a major transformation to make itself a way out of the COVID-19 crisis through a series of determined measures, including personnel reductions, cash preservation through furloughs, contract amendments and temporary labour agreement amendments with employee unions, a €500 million rights issue, sizeable loans and the successful completion of a €200 million cost savings programme. (£1.00 = €1.16 at time of publication)

Wednesday February 28, 2024
THC is set to receive up to 120 Airbus helicopters of various types © Airbus Helicopters
Saudi Arabia’s commercial helicopter services provider, The Helicopter Company (THC), fully owned by the Public Investment Fund, has secured a historic framework agreement with Airbus during the ongoing HAI Heli-Expo at the Anaheim Convention Centre, Cal... Read More »
Wednesday February 28, 2024
AERO CARE's new headquarters in Miami will house the company's stock of engine parts for CFM56 and V2500 engines
AERO CARE has opened new headquarters in Miami, Fl., ensuring that AERO CARE is strategically positioned to support its global customer base. The new facility will house the organisation’s stock of engine parts for CFM56 and V2500 engines. Focused on enablin... Read More »
Wednesday February 28, 2024
Demonstration flight of AutoFlight's Prosperity eVTOL aircraft © AutoFlight
AutoFlight, the eVTOL pioneer, has performed the first inter-city electric air-taxi demonstration flight between the southern Chinese cities of Shenzhen and Zhuhai. AutoFlight’s five-seater Prosperity eVTOL aircraft completed a significant milestone by auton... Read More »
Wednesday February 28, 2024
LCI and Airbus will collaborate to jointly develop ecosystems for advanced air mobility (AAM) © Airbus
LCI and Airbus have joined forces to propel the development of advanced air mobility (AAM) ecosystems. Their collaboration is cantered on strategic planning, commercialisation and financing in three pivotal AAM areas. Together, they will scrutinise market pers... Read More »
Wednesday February 28, 2024
Jon Downey CEO of EBCO Aviation Insurance
EBCO Aviation Insurance (EBCO), a wholly owned subsidiary of TITAN Aviation Fuels, has named Jon Downey as Chief Executive Officer (CEO). Downey is an experienced leader in the aviation insurance industry. He served as Vice President for United States Aviation... Read More »
Wednesday February 28, 2024
Airbus H135 helicopter
HealthNet Aeromedical Services, headquartered in Charleston, West Virginia, will soon expand its all-Airbus fleet with the addition of four H135 helicopters. As one of the largest hospital-based air medical programmes in the country, the helicopters will be us... Read More »
Tuesday February 27, 2024
Jane P. Chappell
Spirit AeroSystems Holdings has released that Jane P. Chappell will join the company’s Board of Directors, effective February 26, 2024. She will serve on the Corporate Governance and Nominating Committee and the Risk Committee. Chappell has more than four-de... Read More »
Tuesday February 27, 2024
Representatives of Honeywell and Air India at the Singapore Airshow
Collins Aerospace has been selected by Air India for a full suite of avionics hardware catering to the airline’s expanding Boeing 737 MAX fleet. The deal was announced at the Singapore Airshow 2024. The comprehensive package includes communication, navig... Read More »
Tuesday February 27, 2024
Etihad Cargo and WFS have signed a cargo handling services contract for 12 major international airports
Etihad Cargo has forged a strategic partnership with Worldwide Flight Services (WFS), a leader in air cargo logistics and ground handling. This three-year global agreement covers cargo handling services at 12 major international airports spanning Europe, Scand... Read More »
Tuesday February 27, 2024
Honeywell will supply 105 T55-GA-714A engines to support Germany’s procurement of new CH-47F aircraft © Honeywell
Honeywell will supply 105 T55-GA-714A engines to support Germany’s procurement of new CH-47F aircraft, the country’s first fleet of Chinook helicopters. This sale supports Honeywell’s alignment with the compelling megatrend of the future of aviation. ... Read More »
Tuesday February 27, 2024
Norse Atlantic will fully replace the aircraft paper technical log, cabin log, journey log and fuelling logs with ULTRAMAIN ELB © Ultramain Systems
Norse Atlantic Airlines (Norse Atlantic), a Norwegian low-cost airline, has selected Ultramain Systems electronic logbook, ULTRAMAIN ELB, to fully replace the aircraft paper technical log, cabin log, journey log and fuelling logs on its fleet of 15 Boeing 787 ... Read More »
Tuesday February 27, 2024
Silk Way West Boeing 777F aircraft © Turkish Technic
Turkish Technic has recently inked a component pool agreement with Silk Way West Airlines, an Azerbaijani cargo airline and a Boeing 777F fleet operator. Under this accord, Silk Way West Airlines gains access to spare parts pooling and MRO services for essenti... Read More »
Tuesday February 27, 2024
United will add 12 advanced full-motion flight simulators to the new building at the Denver Flight Training Centre
United Airlines (United) has significantly expanded its Flight Training Centre in Denver, unveiling a new 150,000 ft² building. This addition enables the incorporation of 12 advanced full-motion flight simulators, with six already operational. In 2024, United... Read More »
Monday February 26, 2024
Prominent figures from the U.S. and European aerospace sectors have formed a coalition aimed at bolstering the integrity of the aviation supply chain and preventing unauthorised parts from infiltrating it. Key members of the Aviation Supply Chain Integrity Coa... Read More »
Monday February 26, 2024
Contract signing at the Singapore Airshow between Liebherr-Aerospace and JAL © Liebherr-Aerospace
Liebherr-Aerospace and Japan Airlines (JAL) have signed a long-term service contract for the overhaul of landing gears. With this contract, Liebherr-Aerospace becomes the exclusive service provider for J-Air, a subsidiary of the JAL Group, for MRO of the landi... Read More »
Monday February 26, 2024
© Shutterstock
AerCap has revealed its financial performance for the fourth quarter and full year of 2023, concluding on December 31, 2023. Aengus Kelly, the CEO of AerCap, expressed satisfaction with the results, marking another record quarter and a stellar year for the com... Read More »
Monday February 26, 2024
Cebu Pacific Airbus A330-900 © Airbus
Safran Nacelles and Cebu Pacific have signed a multi-year service agreement to cover the maintenance repair and overhaul (MRO) of the carrier’s Airbus A330neo nacelles as well as an asset pool access. Under this agreement, Cebu Pacific will have access t... Read More »
Monday February 26, 2024
Philippine Airlines (PAL)
AAR subsidiary Airinmar has signed a multi-year support services extension with Philippine Airlines (PAL).  Working in conjunction with PAL’s aircraft material management team, Airinmar will provide a full suite of support services covering both aircraft wa... Read More »
Monday February 26, 2024
Jackson Square Aviation has signed a financing deal for Hawaiian Airlines first Boeing 787-9 Dreamliner © JSA
Jackson Square Aviation (JSA) has reported the successful financing of Hawaiian Airlines‘ first Boeing 787-9 Dreamliner, marking a milestone in their longstanding partnership. John Yanney, JSA Head of Marketing Americas and OEM Relations, expressed his g... Read More »
Monday February 26, 2024
Ground-breaking ceremony for N3's expansion at Erfurter Kreuz in Germany © N3
N3 Engine Overhaul Services (N3) officially marked the start of its expansions with a ground-breaking ceremony on February 23. The joint venture between Lufthansa Technik and Rolls-Royce is expanding its building complex. The main construction works that are n... Read More »
Avitrader MRO magazine - remove before flight - component maintenance

2023 MEDIA KIT

Aviation Media Pack

Learn more on how AviTrader can expand your market

Please contact

Tamar Jorssen
Vice President Sales & Marketing
+1.778.213.8543
[email protected]
Mailing Address
AviTrader Publications Corp.
Suite 305, South Tower
5811 Cooney Road
Richmond, BC V6X 3M1
Canada

Subscribe to the most widely accepted news source in the aviation industry!


Free Daily, Weekly and MRO Publications delivered to your Inbox!
News Alerts, Editorials, Marketplace, Executive Interviews +more

Select publications:

*we respect your privacy and AviTrader will not share your email address to any 3rd Parties.

Scroll to Top
AviTrader

FREE
VIEW