At its Annual General Meeting 2015, Finnair CEO
Pekka Vauramo outlined a new phase for Finnair, fuelled by new
aircraft and service renewal.
“Year 2014 was a challenging one, but we have
good reasons to be optimistic about the future. Year 2015 marks a
significant new phase for us,” said Finnair CEO Pekka Vauramo in
the company’s AGM. “We have successfully completed a broad,
three-year savings program. Cost control naturally continues, but
our focus is now strongly on increasing revenues. We are
developing ancillary services systematically based on data
collected from approximately 8,000 of our customers in Europe and
Asia, on what services they want and what they are willing to pay
for.”
Vauramo lists new meal services on board, full
flat Business Class seats, Economy Comfort seats and the new Light
ticket type as good examples of service renewal. In addition the
company has begun investing in different digital services.
Fleet Renewal and New Jobs
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 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 said. “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,”
added Vauramo.
“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 said. “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
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.”
Ownership Structure and Domestic Flying
Heinemann reminded
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.
Finnair,
Helsinki
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