Finnair banks future on Asian strategy
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Finnair has confirmed that expanding in Asia will remain at the centre of its corporate strategy for the coming years.
Following its annual review, Finnair’s board of directors approved the airline’s Asian strategy, which includes the target of doubling its Asian revenues by 2020, compared to 2010 levels, and using Helsinki’s geographic location to market Finnair’s services as the fastest one-stop routes between Europe and Asia.
“By taking advantage of the growth of Asian markets Finnair has the ability to grow… if it succeeds in its ongoing structural change and cost saving programme,” the company said following the review. “Finnair’s long-term target is 6% operational profit, which would allow the company to invest in the future and provide a return on capital employed higher than its cost,” it added.
To achieve this however, Finnair noted that it needs to improve infrastructure and connectivity at Helsinki Airport, and operate without “bottlenecks”.
“Finnair’s home base at Helsinki Airport has an important role in Finnair’s strategy. As part of its hub development, Finnair will examine different options… so that Helsinki Airport can be utilised as flexibly and cost-efficiently as possible when traffic increases.”
The airline also is also investing in a new long-haul fleet, including firm orders for 11 new Airbus A350s, deliveries of which are due to start in the second half of 2015. These will replace Finnair’s existing A340s, offering greater capacity and better fuel economy.
“By implementing its strategy, Finnair aims at being able to determine its own future in the rapidly changing market and consolidating industry,” the airline concluded.
Finnair currently operates from Helsinki to 12 destinations in seven Asian countries, and plans to launch new scheduled flights to Krabi and Phuket later this year. The airline also recently became part of BA and JAL’s joint venture between Europe and Japan
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