Finnair (Helsinki) as we previously reported, is now a part owner of Flybe Finland. The Finnish Competition and Consumer Authority approved the transaction in which Flybe UK Ltd’s 60% ownership of Flybe Nordic venture was transferred to StaffPoint Holding Ltd and G.W. Sohlberg Ltd (GWS) . The letter of intent on this transaction was announced on January 7, 2015. StaffPoint’s ownership in the joint venture is now 45%, GWS’s 15% and Finnair’s 40%.

Flybe Nordic owns fully the Finnish subsidiary Flybe Finland, which is in charge of Finnair’s regional airline operations. Flybe Finland currently operates to a number of domestic and European destinations from Helsinki on behalf of Finnair on a contract-flying basis. In addition, Flybe Finland operates to five domestic destinations as well as Tartu, Estonia and Norrköping, Sweden at its own commercial risk.

As a result, Finnair now has issued this statement:

Starting May 1 all routes operated by Flybe Finland (Helsinki) at their own commercial risk will become a part of Finnair’s contract flying arrangements, and the flights will carry a Finnair (AY) flight designator instead of Flybe’s (BE) code. The routes are between Helsinki and the following destinations:

Jyväskylä
Kajaani
Kemi-Tornio
Kokkola-Pietarsaari
Mariehamn
Norrköping
Tartu
Visby

Finnair sells tickets to these routes starting on March 10, 2015. Tickets can also be purchased from Flybe Finland until April 30, 2015.

The change to Finnair’s flight numbers may cause some changes to the schedules of Flybe Finland flights that have already been booked and which depart on 1 May 1, 2015 and onward.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Flybe Finland’s ATR 72-212A (ATR 72-500) OH-ATG (msn 757) sits on the ramp at the Helsinki (HEL) base.

Finnair (Helsinki) on May 11 will open a new daily service to Gdansk, Poland.

The service will be sold with Finnair’s flight number, and it will be operated by Flybe Finland (Helsinki) with ATR 72 aircraft.

In addition to Gdansk, in Poland, Finnair flies daily to Warsaw year-round and to Krakow from  April 2 until October 22, 2015.

Copyright Photo: Ton Jochems/AirlinersGallery.com. ATR 72-212A (ATR 72-500) OH-ATG (msn 757) sits on the Helsinki (HEL) ramp.

Finnair aircraft slide show: 

Finnair (Helsinki) in its on-going partnership with Finnish design institution Marimekko, Finnair is releasing of new series of amenity kits in three distinctive Marimekko prints.

The long-haul Business Class amenity kits (above and below) feature essential inflight goodies including an eye shade, earplugs, toothbrush and toothpaste, and Clarins moisturizer and lip balm. The following additional items are available upon request: tube socks or slippers, shaving kit, mouthwash, hairbrush and make-up remover wipes.

Passengers traveling long-haul routes in Economy Comfort (below) will also receive a special amenity kit, though slightly different from the Business Class version.

All images by Finnair.

Finnair aircraft slide show: 

Finnair (Helsinki) opens new routes to Sweden, and will fly daily to Luleå and Umeå on the coast of the Gulf of Bothnia during the summer season 2015 connecting these growing centers to Finnair’s wide network of destinations in Asia, Europe and North America with daily frequencies.

Located by the Baltic Sea, Umeå is the largest city in northern Sweden, with a growing population and vibrant cultural life. Also by the Baltic Sea, Luleå is one of Sweden’s northernmost cities, with a long history in steel manufacturing and technical know-how.

Finnair is also taking over routes previously marketed by Flybe Finland from Helsinki to Visby on Gotland Island and to Norrköping in central Sweden.

Visby is known for its well-preserved medieval city, which is a UNESCO World Heritage site, and its beautiful scenery and historical attractions make it an ideal summer holiday destination. Norrköping is a lively city in central Sweden, and the host of Sweden’s largest music festival. Finnair flies to Norrköping daily, and to Visby three times per week during the summer season.

Finnair also operates several daily frequencies to Stockholm and Gothenburg.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Embraer ERJ 190-100LR OH-LKK (msn 19000127) approaches the runway at Zurich.

Finnair aircraft slide show: 

Finnair: “It is Finnish aviation history for Finnair and it’s aviation history for me”, says chief pilot Jari Paajanen, when he had an opportunity to fly the A350 XWB from Helsinki to Toulouse as a part of aircraft’s test flight world tour in August 2014. We’re thrilled to receive the aircraft in autumn 2015 as the first European carrier. Check the feelings of #FinnairA350! The video is produced by Airbus.

Finnair (Helsinki) as planned, has completed its acquisition of Flybe Nordic (Helsinki) and its Flybe Finland (formerly FinnComm Airlines) (Helsinki) airline subsidiary. Finnair issued this statement:

Finnair has acquired Flybe UK Ltd’s 60% ownership of Flybe Nordic for a transaction price of 1 euro, and Flybe Nordic will transfer to Finnair’s ownership on an interim basis. The transaction has been closed on March 31, 2015. Finnair continues discussions about the continued ownership of Flybe Nordic. Finnair and StaffPoint Holding Ltd and G.W. Sohlberg Ltd. signed on January 7, 2015 a Memorandum of Understanding about an arrangement according to which Staffpoint and GWS would own together 60% of Flybe Nordic shares.

“Last November Finnair and Flybe UK decided to discontinue their Flybe Nordic co-operation and agreed, that Flybe UK will sell its 60% ownership in the company to a potential new majority shareholder or Finnair. While the discussions with Staffpoint and GWS still continue, Finnair will now acquire Flybe UK’s share of Flybe Nordic. We hope to sign a new share purchase agreement in the coming months,” says Pekka Vauramo, Finnair CEO.

Flybe Nordic owns fully the Finnish subsidiary Flybe Finland, which operates with a total of 26 ATR and Embraer aircraft a substantial part of Finnair’s domestic and European routes as purchase traffic. Flights operated by Flybe Finland will continue normally.

“Finnair aims to find together with its partners a business model that would enable the development of regional flying in a financially sustainable way. We will take an important step to this direction at the beginning of May, when all routes operated by Flybe Finland at their own commercial risk will become a part of Finnair’s contract flying arrangements, as we have communicated earlier. Flybe Finland has also implemented several internal measures to improve the company’s financial position,” says Vauramo.

The ownership change of Flybe Nordic does not have any immediate impact on Finnair’s result. Finnair continuously monitors the balance sheet valuation related to the Flybe Finland cooperation and will inform about possible financial impacts in more detail in connection with its interim review on 7 May, 2015.

In other news, Finnair has announced it will introduce its first onboard Wi-Fi service in autumn 2015.

Finnair Board of Directors has approved an investment program for bringing Wi-Fi connectivity to the majority of Finnair’s wide-body and narrow-body fleet. The total value of the investment is approximately 30 MEUR.

Finnair will introduce its first onboard Wi-Fi service in autumn 2015, with the arrival of the first Finnair A350 XWB aircraft. In 2016, the company will start Wi-Fi installations in Finnair’s Airbus A330 long-haul aircraft as well as its European short-haul Airbus fleet. Installations are expected to be completed by 2018.

Finnair aircraft slide show: 

Copyright Photo: OSDU/AirlinersGallery.com. ATR 72-212A (ATR 72-500) OH-ATL (msn 851) of Flybe Finland lands at Pulkovo Airport in St. Petersburg, Russia.

Finnair‘s (Helsinki) Board of Directors has approved an investment program for bringing Wi-Fi connectivity to the majority of Finnair’s wide-body and narrow-body fleet.

Finnair will introduce its first onboard Wi-Fi service in the fall of 2015, with the arrival of the first Finnair A350-900 XWB aircraft. In 2016, the company will start Wi-Fi installations on Finnair’s Airbus A330 long-haul aircraft as well as its European short-haul Airbus fleet. Installations are expected to be completed by 2018.

Meanwhile the company issued its plan to turn around the company. The top management briefed its shareholders on the plans:

Finnair CEO Pekka Vauramo has listed new meal services on board, full flat Business Class seats, Economy Comfort seats and the new Light ticket type as good examples of its service renewal. In addition the company has begun investing in different digital services.

According to Vauramo, Finnair’s fleet renewal plays a key role in the company’s new phase. In the second half of this year, Finnair will be the first European airline to operate the next-generation Airbus A350-900 XWB aircraft.

“The first long-haul operation with the new aircraft is at the end of October, and Shanghai, Beijing and Bangkok are the first destinations,” Vauramo says. “On these Asian routes we get the most out of our new aircraft. The new aircraft will improve our product, decrease costs and also decrease our CO2 emissions.”

“As the fleet investment program proceeds, our long-haul will start to grow in 2016. We seek growth in traffic and in revenue with these aircraft. As we are now more cost-effective, thanks to our structural changes, I believe we have a strong foundation to produce results with the new fleet,” Vauramo estimates.

“Growth also creates jobs. Every new Airbus A350 XWB aircraft that grows our fleet will create approximately 200 jobs at Finnair. Half of this is flying personnel, and the other half is in other functions,” Vauramo stresses. “Increasing the fleet size by five long-haul aircraft will create approximately 1000 jobs in Finnair in the next five years. The company employed approximately 4500 persons at the end of 2014.

Finnair continues to seek growth in Asia, where the company now has more than 70 flights per week. Economic growth in Asia continues, but there are growth opportunities also in North America. Finnair is opening a new route to Chicago this June.

Successful savings program enabled move towards growth strategy

Klaus Heinemann, Chairman of the Finnair Board of Directors, stressed in his opening speech the importance of reaching collective labor and savings agreements with all personnel groups through negotiations in 2014. “For this, I want to express my sincere and warm thanks to the whole Finnair personnel. We are very fortunate that we are not in the same position as some of our competitors who have struggled with strikes during this and last year,” Heinemann said.

Heinemann also highlighted the significance of 2015. “We are now moving to a new phase, where in line with our strategy, we seek to grow revenue. Even if the changes ahead are positive in nature, they will not be easy, as launching new products and taking new aircraft into use always requires an organization to learn new things and move away from old ways of working. I believe that the Finnair team is well aware of the great opportunities the upcoming changes of 2015 offer us to improve our performance, and the Finnair spirit will support the performance of the team.”

Discussion still needed on ownership structure and the financial challenges of domestic flying

Chairman of the Board Heinemann reminded the shareholders of the wish he made last year, and called for continuation of constructive discussion in Finland on Finnair ownership structure and the company’s future in the consolidating aviation market: “I believe that Finnair’s future matters to the whole Finnish national economy, and hence it would be worthwhile to consider how the good air connections in Finland could best be secured in this consolidating world.”

Heinemann also brought up the challenges of Finnair’s domestic flying. “Our business on domestic routes has been financially in the red for a long time,” he said. “I understand the national concern in Finland over maintaining air connections.” Heinemann also said he had familiarized himself with the Finnish aviation strategy published by the Ministry of Transportation.

He pointed out that a responsible Board of Directors has a legal obligation to address the challenge presented by domestic flying. “Finnair has expressed interest in taking part in discussions on the different ways demand for aviation could be stimulated in Finland,” he added. Heinemann also noted that it is important to separate the obligation of the public sector to provide a service, and the obligations of a listed company.

Image: Airbus.

Video: Finnair Chairman Klaus Heinemann’s opening speech at AGM on March 25, 2015.

Finnair aircraft slide show: 

Finnair (Helsinki) will formally introduced its new Airbus A350-900 on October 25, 2015. However the airline will operate a number of introductory routes and flights in Europe during October before the new type goes into regular service to Beijing, Bangkok, Hong Kong and Singapore. Finnair’s first ever commercial A350 flight will be on October 5 from Helsinki to Rovaniemi in Finnish Lapland.

According to the airline:

Finnair is the European launch customer, and only the third worldwide, of the completely new aircraft type, which substantially raises the bar for passenger comfort, environmental performance and operational efficiency.

Finnair is also the first airline in the world to operate the A350 on scheduled services to China, where Shanghai will be served with daily A350 service from October 25, 2015. Beijing follows with daily A350 service on November 21, 2015.

Finnair’s peak-season frequencies to Bangkok will be served with a combination of A350 and modern, comfortable A330 aircraft from December 4, 2015. Daily services to Hong Kong from  February 1, 2016 and to Singapore from May 5, 2016 will also be operated with a combination of A350 and A330 aircraft.

Customers can determine the planned aircraft type of their flight by clicking on the flight number during the online booking process at Finnair.com, or by consulting with their travel agent. Changes in aircraft type are possible for operational reasons.

Finnair has 19 A350 aircraft on order, and expects to receive the first four by the end of this year. Another seven will be delivered in 2016 and 2017, with the remaining eight to be delivered between 2018 and 2023. Finnair plans to phase out its A340 aircraft by the end of 2017, leaving the entire widebody fleet comprised only of top-of-the-range Airbus A330 and A350 aircraft.

Crew familiarization flights planned in Europe

Before long-haul A350 operations begin, Finnair will conduct crew familiarization flights throughout Europe during October. These regularly scheduled commercial services will be operated as usual within the Finnair network, just with an A350 rather than the usual narrowbody aircraft. As part of this crew familiarisation, Finnair’s first ever commercial A350 flight will be on October 5 to Rovaniemi in Finnish Lapland, followed in the next two weeks by other European cities such as Brussels, Hamburg, London, Stockholm and Vienna.

October Flights in Europe:

CLICK HERE for the full list of Airbus A350 flights.

Finnair’s A350 XWB: New standards in passenger comfort

The A350’s bright and spacious cabin features large panoramic view windows and comfortable seating arrangements in both cabin classes. Gradual changes in dynamic ambient LED lighting ease customers into new time zones and help create a calming and fresh atmosphere. All Finnair A350s will also be equipped with Wi-Fi for greater passenger enjoyment and connectivity.

The eco-smart design of the A350 brings more than 25 per cent improvement in fuel efficiency and operating cost over the previous generation of aircraft in its class, significantly reducing the carbon footprint of Finnair and its passengers.

The A350 also features an advanced pure air filtration system that changes the air in the cabin every two to three minutes. Draft-free air management, adjustable multiple temperature zones and a higher cabin pressurization also enhance the well-being and reduce the fatigue of passengers and crew.

The 297-seat configuration includes 46 seats in Business Class (above) in a 1+2+1 layout, ensuring direct aisle access for all Business Class passengers. The Zodiac Cirrus III seats convert to fully flat beds, while a 16-inch touch-screen inflight entertainment system comes programmed with films, TV shows, music and other digital content on demand in numerous languages. Seats in Business Class also come equipped with AC and USB power outlets.

The Economy Class cabin features comfortable Zodiac Z300 slim-line seats with a 31-inch seat pitch in a 3+3+3 layout. At the front of the Economy Class cabin are 43 Economy Comfort seats, which come with four extra inches of leg room as well as noise-cancelling headphones and an amenity kit. All seats in Economy include an 11-inch touch screen inflight entertainment system and USB power outlets.

All images by Finnair and Airbus.

Finnair aircraft slide show: 

Video: Finnair:

Finnair (Helsinki) is expanding its codeshare cooperation in Europe with fellow oneworld alliance member Airberlin (Berlin).

Finnair’s AY designator will be added to selected services operated by Airberlin or its subsidiary Niki to Bucharest, Catania, Chania, Cologne, Larnaca, Malaga, Naples, Palma de Mallorca, Paphos and Stuttgart. Finnair passengers will be able to connect to these cities via Berlin, Düsseldorf, Frankfurt, Munich, Vienna or Zurich.

Most of the new codeshares supplement Finnair’s own nonstop services from Helsinki, allowing passengers more travel dates and a wider choice of schedules. The codeshares are planned to take effect from early May.

Finnair and Airberlin have been codesharing across Scandinavia and Central Europe since 2010.

Top Copyright Photo: Airbus A320-214 OH-LXC (msn 1544) of Finnair taxies at London’s Heathrow Airport.

Finnair aircraft slide show: 

Airberlin aircraft slide show: 

Below Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin is gradually phasing out its Boeing 737s. Boeing 737-86J D-ABKQ (msn 37760) prepares to touch down in Tenerife Sur (TFS).

Finnair’s (Helsinki) AY designator will be added to selected services operated by Airberlin (Berlin) or its subsidiary Niki (Vienna) to Bucharest, Catania, Chania, Cologne, Larnaca, Málaga, Naples, Palma de Mallorca, Paphos and Stuttgart. Finnair passengers will be able to connect to these cities via Berlin, Düsseldorf, Frankfurt, Munich, Vienna or Zurich.

Most of the new codeshares will supplement Finnair’s own nonstop services from Helsinki, allowing passengers more travel dates and a wider choice of schedules.

Finnair and Airberlin have been codesharing across Scandinavia and Central Europe since 2010.

Top Copyright Photo: AirlinersGallery.com. Airbus A320-214 OH-LXF (msn 1712) taxies at London (Heathrow).

Finnair aircraft slide show: 

Airberlin aircraft slide show: 

Bottom Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin’s Airbus A320-214 D-ABNA (msn 5191) prepares to land at Tenerife Sur.

Finnair (Helsinki) has issued this statement about the future of partially-owned Nordic Global Airlines-NGA (Helsinki):

The Board of Directors of Finnair’s associated company Nordic Global Airlines Ltd (NGA) has decided to discontinue NGA’s operations by May 31, 2015. The termination of the operations has no material impact on Finnair’s cargo business, or Finnair’s financial position. NGA, focused on cargo freighter operations, was founded in 2011. Since then NGA grew to fly main-deck cargo in four continents with its low-cost and thin-organization model, but with overcapacity in the sector and depressed freight pricing, the cargo airline’s decision to cease operations was unavoidable.

Finnair Cargo Oy owns 40 percent of the company, and other shareholders are Neff Capital Management LLC, Daken Capital Partners LLC and the Mutual Pension Insurance Company Ilmarinen. Between 2011 and 2014, Finnair leased freighter capacity from NGA for its mainly Asian cargo traffic. Finnair’s belly cargo capacity will increase significantly in the coming years, when new A350 aircraft join Finnair’s fleet. Finnair has decided to focus in future on cargo carried in the cargo holds of passenger aircraft and discontinued separate cargo freighter operations at the end of 2014.

NGA was operating four McDonnell Douglas MD-11F freighters.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Despite the elaborate NGA logo, the NGA aircraft usually operated with only small titles and non-descript white fuselages. McDonnell Douglas MD-11 (F) OH-LGD (msn 48513) arrives at Las Palmas in the Canary islands.

Finnair Group (Helsinki) reported a net loss of €9.8 million ($11.0 million) for the first quarter, down from a net loss of €28.1 million $35.5 million) in the same quarter a year ago.

CEO Pekka Vauramo commented on the results:

Finnair’s revenue in the first quarter of 2015 was on a par with the corresponding period in 2014 at 540.4 million euros. Revenue was increased by higher passenger traffic revenue and negatively affected by lower revenue from Aurinkomatkat Suntours and cargo traffic, as well as the elimination of revenue from businesses sold after the comparison period. Our profitability improved substantially, although our operational result showed a loss of 28.4 million euros.

The factors contributing to the improved result in addition to the increased revenue included further progress in cost savings as well as lower fuel prices. Unfortunately, the substantial appreciation of the dollar against the euro diluted the benefit gained from the fall in the price of jet fuel and significantly increased other dollar-denominated costs. The operational result also reflects the weak financial performance of Aurinkomatkat Suntours.

During the reporting period and in the preceding years, Finnair result has been affected by strong changes in the yen and / or changes in the dollar exchange rate. Therefore we started to report unit revenue and unit cost excluding fuel at constant currency during the review period. This change will show the actual development of our Airline Business more clearly. At the same time we adjusted the calculation method to reflect the structural changes that have taken place within the Group – the transfer of Flybe Finland’s own risk flying to Finnair’s purchased traffic, for example. On this basis, unit revenue at constant currency fell by 0.4 per cent and unit cost excluding fuel at constant currency rose by 1.1 percent on the comparison period. The increase in unit cost excluding fuel at constant currency is largely explained by changes in our traffic structure.

We are moving in the right direction, despite the fact that our result is still not at the level we are striving to reach. Our long-haul fleet renewal, which will start this coming autumn, will significantly improve the cost-competitiveness and customer experience of our long-haul traffic. At the same time, we will continue to focus on increasing our revenue through, for example, ancillary revenue. The positive effect of increased ancillary sales was visible already in our first quarter figures, although its share is still small. Finnair’s strategic targets are discussed in more detail in a separate stock exchange release that was issued this morning.

Finnair also announced its on-going strategy changes:

As a part of its annual strategy review, Finnair’s Board of Directors has approved a new vision and updated the company’s mission and strategic targets.

Finnair’s direction: Unique Nordic experience

Finnair’s new vision is to offer its passengers a unique Nordic experience.

Finnair’s route network connects Asia, North America and the northern regions of Europe and beyond through its hub at Helsinki Airport. The operations are based on quality, reliability, safety and design inspired by Nordic pure nature. The vision is expressed for example in easy-to-use digital services and in the enhancement of Business Class services. The goal is that as a result of the service offered at the airport, in lounges and on board, customers arrive at their destinations relaxed and with peace of mind.

Finnair’s vision gives direction to all Finnair employees and partners in the areas of customer service, operations or development of the company operations and services.

Finnair’s mission: fast and smooth connections

Finnair’s mission is to offer

· the smoothest, fastest connections in the northern hemisphere via Helsinki

· the best network to the world from its home markets.

Updated strategic objectives for the company

· Double Asian traffic by 2020 from the 2010 level

· Deliver a unique customer experience and achieve world-class operations

· Create shareholder value

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.

To achieve these strategic objectives the company Board of Directors has approved six strategic implementation areas for 2015 – 2017:

· Intercontinental growth with Northeast Asia focus

· Customer excellence

· People and Finnair culture

· Digitalization

· Funding and capital structure

· World-class operations

In its operations Finnair enters a new phase during the 2015–2017 period, as it becomes, from October 2015, the first European operator of the next-generation Airbus A350 XWB aircraft. Finnair aims to maximize the competitive advantage and ensure competitive funding for the fleet investments in order to achieve its strategic objectives.

Finnair’s financial objectives

Finnair’s Board of Directors increased the target level of Adjusted gearing from maximum of 140 percent to maximum of 175 percent and confirmed other earlier long term financial objectives:

· EBIT margin 6% over cycle

· EBITDAR margin minimum of 17% over cycle

· Adjusted gearing maximum of 175%

· Return on Capital Employed (ROCE) minimum of 7%

Image below: Finnair is centering its turnaround on the new Airbus A350-900.

Finnair aircraft slide show: 

Finnair (Helsinki) is strengthening its ties with fellow oneworld alliance members JAL-Japan Airlines (Tokyo) and QANTAS Airways (Sydney), with new codeshares on the airlines’ respective services to Busan, South Korea and Perth, Australia.

Busan is a new addition to Finnair’s extended network, which Finnair passengers can now reach daily via Tokyo Narita on services operated by Japan Airlines. The new codeshare allows Finnair to serve South Korea’s prosperous second-largest city, with a population of 3.6 million that is growing in economic clout and seeking more connections to Europe.

Japan Airlines and Finnair already codeshare extensively on each other’s services throughout Europe and Japan.

Additionally, from June 26, 2015 Finnair passengers can connect to Perth via Singapore on services operated by oneworld partner QANTAS Airways. This creates additional scheduling and route options for Finnair passengers, who can also connect to Perth via Hong Kong on oneworld partner Cathay Pacific Airways (Hong Kong).

In other news, Finnair, the first European airline to operate the Airbus A350-900 aircraft (above), has awarded Lufthansa Technik a 12-year agreement for component support for the new aircraft type. Lufthansa Technik is one of the leading providers of technical services for the aviation industry, and the agreement with Finnair is the company’s first contract for A350 XWB component support.

The exclusive Total Component Support TCS®contract covers the availability and repair services of A350-900 XWB components. Finnair already has an agreement with Lufthansa Technik on engine-related components service for V2500 engines and APU services for APS3200.

Finnair’s own maintenance organization at the Helsinki Airport is responsible for the line maintenance of Finnair’s current fleet and the new A350-900 XWB fleet.

Finnair has firm orders for 19 A350-900 XWB aircraft, the first four of which are expected to arrive in the fleet in the second half of this year, with another seven in 2016 and 2017. The complete order will be fulfilled by 2023.

Copyright Photo below: Paul Bannwarth/AirlinersGallery.com. Airbus A321-231 OH-LZH (msn 5803) with Sharklets approaches the runway for landing at Las Palmas.

Finnair aircraft slide show: 

Finnair (Helsinki) is facing a possible strike by the Finnish Aviation Union for next week that will possibly affect Finnair and other airlines operating to Finland. The airline has issued this statement:

The Finnish Aviation Union has issued a strike warning for May 19-20, 2015, and the possible strike would impact also Finnair and its subcontractors. The strike is in connection to a dispute related to a collective labor agreement applied to a Finnish ground handling company. Finnair is not a party to the dispute in any way. The strike would also impact other airlines operating to and from Finland.

Even though the dispute is not related to Finnair, the strike would, if implemented, have significant impacts on Finnair flights, as it would bring Finnair’s baggage and ground handling services to a complete halt for several hours during peak travel hours on May 19-20. The strike would thus disrupt the travel plans of thousands of Finnair customers. Finnair has already offered customers the possibility to change their travel dates to avoid traveling on the possible strike days.

If the strike threat is not withdrawn, Finnair is forced to cancel many of its flights on May 19-20, to avoid a situation where thousands of customers would be stranded at Helsinki Airport when their connecting flights cannot be operated. Some cancellations will also have to be made on May 18 and May 21.

First cancellations will be made for certain flights for Monday, May 18, and Finnair will inform customers of these cancellations on Sunday, May 17.

Update May 16: From Finnair:

Finnish Aviation Union has withdrawn the threat of a support strike, which would have had significant impacts on Finnair and its subcontractors among others, and the parties to the dispute have reached an agreement.

Copyright Photo below: Ton Jochems/AirlinersGallery.com. Embraer ERJ 190-100LR OH-LKI (msn 19000117) taxies to the gate at the Helsinki hub.

Finnair aircraft slide show: 

Video by Finnair.

Finnair (Helsinki) has issued this statement:

Finnair Cargo, a fully owned subsidiary of Finnair, has expanded its network after signing an innovative freighter sharing deal with IAG Cargo.

The route will be operated by an Airbus A300-600 cargo freighter, which will fly between London and Helsinki. London becomes Finnair’s third cargo hub in Europe in addition to Helsinki and Brussels.

The creation of the new cargo bridge, which will connect the two carrier’s networks, is an important strategic move for Finnair Cargo. It will enable the opening of tens of new destinations in North America in addition to its current routes.

The freighter, which has a 43 ton capacity, will fly twice a week and provides Finnair with the ability to easily route cargo through London.

Copyright Photo: Ton Jochems/AirlinersGallery.com.

Finnair aircraft slide show: 

Finnair (Helsinki) has issued this update on the on-going negotiations with Staffpoint and G.W. Sohlberg to sell a 60 percent share in its subsidiary Nordic Regional Airlines (Norra) (previously Flybe Nordic) (Helsinki). Norra operates 12 ATR 72-500s, two Embraer ERJ 170s and 12 Embraer ERJ 190s for Finnair on domestic and European routes. Here is the update:

Finnair, Staffpoint Holding Ltd (Staffpoint) and G.W. Sohlberg Ltd (GWS) have previously indicated an intention to conclude a transaction whereby 60 percent of the shares in Nordic Regional Airlines AB would be transferred to the ownership of Staffpoint and GWS.

As of March 31, 2015, Finnair has owned 100 percent of the company during an interim permission by the Finnish Competition and Consumer Authority (FCCA). Due to the negotiations being protracted and the interim permission expiring, Finnair has now filed an application with the FCCA to approve the current ownership structure.

However, negotiations on the ownership arrangements of Nordic Regional Airlines AB continue, and Finnair expects the transaction to proceed within the next few months. The delay is due to the need of the parties to assess even more thoroughly the alternative traffic models of regional flying in a constantly developing operating environment.

Nordic Regional Airlines AB owns the entire share stock in its Finnish subsidiary Nordic Regional Airlines Oy (Norra).

Norra operates a fleet of 26 ATR and Embraer planes on Finnair’s domestic and European routes. The company previously operated under the name Flybe Finland Oy.

Above Photo: Norra.

On January 7, 2015, Finnair signed a Memorandum of Understanding (MOU) with Staffpoint and GWS on a transaction whereby Staffpoint and GWS would jointly acquire from Flybe Ltd its 60 percent majority stake in Finnair’s and Flybe Ltd’s joint venture company, Nordic Regional Airlines AB.

While the negotiations continued, Finnair acquired Flybe Ltd’s stake, and Flybe Nordic was thus transferred entirely to Finnair’s ownership on March 31, 2015.

Finnair has issued stock exchange releases on the Norra transactions on November 12, 2014, January 7, 2015, January 29, 2015 and March 31, 2015.

Top Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Finnair (Nordic Regional Airlines-Norra) Embraer ERJ 190-100LR OH-LKH (msn 19000086) prepares to land in Zurich.

Finnair aircraft slide show: 

Finnair-Norra aircraft slide show: 

Video: A typical turnaround flight in rural Finland.

Finnair (Helsinki) reported a second quarter net loss of €6 million, down from a larger 2Q net loss of €23.9 million in the same period a year ago.

CEO Pekka Vauramo commented on the results:

Our passenger traffic revenue from tickets and ancillary services saw strong growth in the second quarter of 2015, and we achieved a new record in June by carrying more than 37,500 passengers in one day. At the same time, ancillary sales grew by one third from the previous year. Our customers have heartily welcomed the Chicago route as well as our new seasonal summer routes, with demand exceeding our expectations. Furthermore, business travel has picked up noticeably.

Profitability improved significantly, although the operational result still showed a loss of 12.9 million euros. The result improvement is attributed to revenue growth in our core business operations, the progress of cost reduction measures and the decline in fuel prices, which is reflected in our costs gradually due to our hedging policy. The appreciation of the dollar diluted the benefit from fallen jet fuel price and significantly increased our other dollar-denominated costs, but at the same time, the appreciation of our income currencies boosted our revenues particularly in Asia. In addition, our positive performance was supported by the result improvement at Aurinkomatkat Suntours.

While we cannot be satisfied with our loss-making result, our financial position and liquidity are very strong. Our long-haul fleet renewal, which will start this autumn, will significantly improve the cost-competitiveness and customer experience of our long-haul traffic. At the same time, we will continue to focus on increasing our revenue through, for example, ancillary services and product improvements in intercontinental traffic.

We are moving in the right direction and our strategy, which was updated in the spring, is clear. Our goal is profitable growth, which we will be better equipped to achieve once the Airbus A350 aircraft start joining our fleet later this year. They will enable the gradual growth of capacity and substantially reduce our fuel costs on long-haul flights. In addition, we have begun to recruit cabin crew with a view to future growth. Our whole team is enthusiastically preparing for Finnair’s next phase.

Here are the details:

Finnair Plc. Interim report August 14, 2015:

April-June 2015

• Revenue on a par with second quarter of 2014, at 561.0 million euros (565.7).
• Operational result improved to -12.9 million euros (-19.6).
• Operational EBITDAR was 37.4 million euros (35.5).
• Net cash flow from operating activities stood at 88.4 million euros (69.2), and cash flow from investments totalled -53.7 million euros (-92.3).
• Unit cost at constant currency excluding fuel (CASK excl. fuel) increased by 0.7% year-on-year.
• Unit revenue at constant currency (RASK) decreased by 1.9% year-on-year.
• Earnings per share amounted to -0.06 cents (-0.20).

January-June 2015

• Revenue on a par with first half of 2014, at 1,101.4 million euros (1,109.0).
• Operational result improved to -41.3 million euros (-53.9).
• Operational EBITDAR was 56.6 million euros (53.0).
• Net cash flow from operating activities stood at 101.4 million euros (48.7), and cash flow from investments totalled 89.2 million euros (141.4).
• Unit cost at constant currency excluding fuel (CASK excl. fuel) increased by 0.9% year-on-year.
• Unit revenue at constant currency (RASK) decreased by 1.2% year-on-year.
• Earnings per share amounted to -0.16 cents (-0.44).
• Finnair updates its guidance and estimates that, in 2015, its operational result is around break-even or slightly positive.

Outlook

Outlook published on May 7, 2015

The demand outlook for passenger and cargo traffic in Finnair’s main markets still involves uncertainty. Finnair estimates that, in 2015, its capacity measured in Available Seat Kilometres will grow by approximately 3 per cent and that its revenue will remain at the 2014 level. Finnair further estimates, as a change to its previous guidance, and when calculated with the same accounting principles as earlier, that its unit costs excluding fuel will increase from the 2014 level due to the structural changes in the company’s business and the strong appreciation of the US dollar. By applying the changed calculation method, that neutralises the effect of these changes as defined in notes 16 and 18 to the interim financial statements, Finnair estimates that its 2015 unit costs excluding fuel at constant currency will decrease from the 2014 level.

The lower price of jet fuel and the full impact from the completed savings program are supporting the financial performance of Finnair 2015.

According to its disclosure policy, Finnair will issue guidance on the expected development of its operational result in connection with the January–June interim report. As a separate guidance Finnair estimates that, when calculated using the exchange rates effective at the end of the review period, the non-recurring items associated with the long haul fleet renewal in 2015 will have a substantial positive impact on Finnair’s operating result due to the strengthened US dollar. Finnair has previously estimated that the long haul fleet renewal would not have a significant effect on its operating result in 2014 and 2015. The non-recurring items related to the long haul fleet renewal react substantially to changes in the euro-dollar exchange rate.

Outlook on August 14, 2015

Finnair estimates that, in 2015, its operational result is around break-even or slightly positive.

Finnair reiterates its previous estimate that its capacity measured in Available Seat Kilometers will grow by approximately 3 per cent and that its revenue will remain approximately at the 2014 level. As a change to its previous estimate, the company now estimates that its 2015 unit costs excluding fuel at constant currency will remain at the 2014 level.

Finnair also reiterates as a separate guidance that, when calculated using the exchange rates effective at the end of the review period, the non-recurring items associated with the long haul fleet renewal in 2015 will have a substantial positive impact on Finnair’s operating result due to the strengthened US dollar.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airbus A319-112 OH-LVG (msn 1916) arrives in Zurich.

Finnair aircraft slide show: 

Video: Finnair is depending on the new Airbus A350-900 to boost its bottom line later this year.

Finnair (Helsinki) has announced its expansion for next summer:

Finnair is opening four new routes to Edinburgh, Billund, Pula and Svalbard for summer 2016.

Finnair will start flying to Edinburgh from April 18 to October 27, 2016.

Flights to Billund in Jutland, Denmark, will become a year round destination from April 4, 2016.

Finnair will continue to increase its Croatia service with two weekly flights between Helsinki and Pula, from June 20 to August 12, 2016.

Finnair will be the first airline to offer scheduled international services to Svalbard, the Norwegian archipelago in the Arctic Ocean. From June 1 to August 27, 2016 there will be three weekly flights from Helsinki to the northernmost airport in the world. Svalbard – located between Norway and the North Pole, is a land of untouched arctic wilderness.

In summer 2016, new scheduled flights will replace previously chartered flights to the Greek islands of Zakynthos, Skiathos, Santorini, Mytilene and Preveza. The same will apply to Rimini and Verona in Italy and to Varna in Bulgaria.

Finnair will also increase the number of flights to the popular summer destinations of Malta, Tel Aviv in Israel and to Biarritz and Nice in France. Malta was a new destination this summer and there has been a high demand from Finland and Asia, so an extra weekly flight will be added for summer 2016.

Copyright Photo: AirlinersGallery.com. Airbus A320-214 OH-LXI (msn 1989) taxies to the gate at London’s Heathrow Airport.

Finnair aircraft slide show: 

Finnair (Helsinki) has issued this statement for Friday, September 18:

The Finnish labor unions have announced an extensive, nationwide demonstration to take place in Finland on Friday September 18, 2015. The demonstration is expected to have a wide impact on different industries, including commercial aviation.

Finnair estimates the demonstration to have significant impacts on Finnair customer service, baggage handling and different processes and services related to flight departures at Helsinki Airport on Friday. These services are affected primarily between 11:00 and 13:00 EET, but the impacts can be visible to customers both prior to the demonstration period and after it – for example, transportation services at Helsinki Airport are impacted during 06:00-22:00 EET.

“We are extremely sorry about the disruption this demonstration causes to our customers’ travel plans. We will do our utmost to serve our customers in the best possible way in this difficult situation, and thus offer them the possibility to change their flights,” says Janne Tarvainen, Head of Finnair’s Operational Control Center. “We hope that despite this demonstration that is not dependent on Finnair, as many customers as possible will get to their destinations as planned.”

Friday is the busiest day in terms of passenger numbers for Finnair, and the demonstration thus impacts thousands of Finnair customers. The demonstration’s impacts are expected to cause flight delays, time table changes and possibly also flight cancellations during Friday. Even though the demonstration takes place on Friday, some impacts can still be expected in aviation over the weekend.

Finnair has started preparations to minimise the disruptions the demonstration causes on our customers’ travel plans. Customers who have reservations on Finnair flights during September 17-19, 2015, can change their trip to another time free of charge, and avoid traveling during the time when the demonstration causes delays and other disruption on Finnair traffic.

Finnair continues to estimate the detailed impacts of the demonstration, and will communicate possible time table changes and/or cancellations starting on Wednesday, September 16. Finnair advises customers to take the following action:

• Customers who are travelling with Finnair on September 17-19, 2015 can already now change their travel dates free of charge, following instructions given at http://www.finnair.com/info
• Please make sure that you have the correct mobile number and other contact information in your reservation.
• Decisions on timetable changes and/or cancellations are made starting on Wednesday, September 16,2015, and we will communicate the changes directly to customers, and also on our webpages at http://www.finnair.com/int/gb/flights/flightlist
• If a flight is cancelled, customers can change their travel date to an earlier or later date, get rerouted when possible, or seek a refund for the ticket price.
• We advise customers to reserve enough time to get to Helsinki Airport, as the demonstration is expected to have impacts on public transportation as well as on transportation services near the airport.

We apologize if our customer service lines are busy during the next few days.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airbus A319-112 OH-LVC (msn 1309) arrives at Zurich.

Finnair aircraft slide show: