Finnair continues to optimize its narrow body fleet and has signed an agreement on the sublease of four Embraer 170 aircraft to Estonian Air. The sublease opportunity is in part made possible by Finnair’s continued work on network optimization and rationalization, and the company achieves considerable savings with this agreement. Fleet optimization is a part of Finnair’s savings program that targets annual savings of 140 million euros.

The sublease periods begin in the first quarter of 2012 and end during 2015. Finnair operates its narrow-body fleet in its domestic and European network.

Finnair announced on August 5, 2011 that it targeted decreases in its annual costs of 140 million euros by 2014. Finnair has already announced that it:

- optimizes its narrow body fleet by discontinuing the lease agreements of four Airbus A320 Series aircraft
- has transferred baggage and apron services to Swissport
- is evaluating the optimum size of its fleet in European air traffic
- has begun analyses of different alternatives to improve cost-efficiency of maintenance service
- continues to investigate partnership opportunities for catering production and Finncatering
- is streamlining its support functions and marketing and distribution activities
- has initiated, and is initiating, numerous smaller savings measures throughout the company.

As the New Year gets under way, excitement is mounting at the approaching spring launch of Finnair’s latest new Asian destination, Chongqing in China. Chongqing is full of surprises. Perhaps the biggest is the limited extent to which this Chinese powerhouse is known in the West. Yet the rates of economic development and urban expansion taking place here are probably unequalled anywhere in the world. “It’s very good that Finnair will start flying here,” says Hans Halskov, Trade Commissioner & Consul at the Royal Danish Consulate in Chongqing. “I am surprised that no other European airlines have come here yet. Finnair will get the benefits of being the first, including media exposure. It’s a big deal for Chongqing to attract an international airline too.”

The potential for Finnair Cargo in such a flourishing industrial environment is huge. “Chongqing currently attracts USD 10 billion in FDIs (Foreign Direct Investments) annually,” says Halskov, interviewed in Finnair Cargo’s online magazine, Finnair Cargo News. “That's a growth from USD 6.3 billion in 2010, from USD 4 billion in 2009, and USD 2.7 billion before that. Foreign companies want to invest more and there are already 200 Fortune magazine Global 500 companies present.

“Chongqing is booming because of its municipality status,” Halskov continues. “The policy has been extended for another ten years, so the phenomenal growth will continue for at least a decade. At that point it will have transformed into a city comparable to Shanghai or Beijing. Because of its inland location, Chongqing will never be like them in terms of internationalization, and that will remain a key difference. But in terms of GDP per capita it will resemble them."

Finnair, 5/01/2011

Finnair plans to reduce the size of its narrow body fleet by four aircraft in autumn 2012 as a part of its earlier announced savings program of 140 million euros. These changes in fleet will bring significant savings and will be implemented by optimizing the airline’s flight schedules and network. Finnair expects to realize a significant boost in narrow body aircraft utilization as a result of this move.

”This change will be practically unnoticeable to our customers,” says Ville Iho, Finnair COO. “But it will help us make the best use of our narrow body aircraft and generate sizeable savings without impacting our production or revenue.”

Finnair will discontinue the lease agreements of four Airbus 320 -Series aircraft from its fleet, and intends to remove the aircraft from the fleet at the end of the lease periods in autumn 2012. This fleet optimisation does not impact personnel. Finnair operates its narrow-body fleet in its domestic and European network.

Finnair announced on August 5, 2011 that it targeted decreases in its annual costs of 140 million euros by 2014. Finnair has already announced that it:
- has transferred baggage and apron services to Swissport
- is evaluating the optimum size of its fleet in European air traffic
- has begun analyses of different alternatives to improve cost-efficiency of maintenance service
- continues to investigate partnership opportunities for catering production and Finncatering
- is streamlining its support functions and marketing and distribution activities
- has initiated, and is initiating, numerous smaller savings measures throughout the company.

Finnair Plc Communications 29.11.2011

Finnair partners with Swissport for baggage and apron services at Helsinki Airport

According to previously announced plans, Finnair and Swissport, a Swiss provider of ground services, have signed an agreement whereby Swissport will take over Finnair’s baggage and apron services at Helsinki Airport in Finland. The five year contract takes effect on December 1, 2011. The current provider of these services to Finnair at Helsinki Airport is Barona Handling.

“Our aim is to further improve the quality, speed and cost effectiveness of our baggage handling and apron services. Swissport is a global player with extensive experience in ground services in international airports, and their competencies and processes are world-class”, says Mika Vehviläinen, CEO, Finnair.

Developing its partnership network is a key part of Finnair’s strategy of structural changes, which aim for considerable cost savings while facilitating growth through quality improvements. By 2020, Finnair’s goal is to grow its traffic to Asia from 74 flights per week to 140, while also doubling its revenue from Asian traffic.

Swissport International Ltd is a world leader in ground services, providing ground services for around 100 million passengers on behalf of 650 client companies in aviation sector. With a workforce of around 35,000, Swissport is active at 180 stations in 36 countries on five continents.

Finnair Plc Communications 7.11.2011

Finnair will operate scheduled flight between Helsinki and Dubai during the winter starting from 7 October 2011.

"Finnair has previously operated charter and leisure flights to Dubai but recently there has been increasing demand. We want to improve our service continuously and offer our customers smoother connections to Dubai," says Ville Iho, Finnair’s Senior Vice President, Operations.

Finnish Tour operators still have a quota of seats on the scheduled flights.

The route will be flown three times per week in the winter season from 7 October 2011 until 23 March 2012. The route is operated with Boeing 757 aircraft. The flight from Dubai to Helsinki takes about 6 hours.

Finnair Plc Press release 3/10/2011