Finnair seeks partner to accelerate Nordic Champion strategy, aims for significantly lower costs in European traffic

Finnair Oyj 

09.02.2012 08:37
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Finnair begins discussions with potential cooperation partners on forming a
joint venture for a cost effective expansion of the company's presence in the
Nordic countries. The potential joint venture would accelerate Finnair's Nordic
Champion strategy, and the aim is to establish new bases and expand the
company's network in the Nordic Countries. 

'The potential joint venture would expand our home base to cover the entire
Nordic region', says Mika Vehviläinen, Finnair CEO. 'This requires a more cost
competitive business model for our short-haul traffic, and this is what the
potential partnership aims at.' 
'For our customers, this would mean better connections and more opportunities
to fly with Finnair', Vehviläinen adds. 'This would also support our Asian
strategy through increased feeder traffic for our Asian destinations and better
presence in key cities throughout the Nordic region.' 

Finnair is undergoing a major restructuring program aimed at improving
competitiveness and restoring profitability. In addition to strengthening its
position in the Nordic countries, the company also seeks to improve the
profitability of its loss-making European traffic. The joint venture model
could allow Finnair to operate some or all of its European traffic at a
significantly lower cost, while Finnair's own operations would concentrate more
on long haul traffic. 

'We continue to discuss with our own personnel the alternatives for
considerably lowering the costs of our European traffic. At the same time, we
will also assess whether the joint venture could operate a part of or our
entire existing European network', says Vehviläinen. 

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 chosen Swissport as its partner for  baggage and apron services
* is optimizing the size of its fleet in European air traffic, and has
discontinued the leases of four Airbus 320 series aircraft and subleased four
Embraer 170 aircraft 
* is exploring  different alternatives to improve cost-efficiency of its engine
and component maintenance services 
* is streamlining its support functions as well as  marketing and distribution
activities 
* has initiated numerous other savings measures throughout the company.

Further information:
Finnair Media Desk tel. +358 9 818 4020, comms(a)finnair.com

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News Source: NASDAQ OMX



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Language:     English
Company:      Finnair Oyj
              
               
              Finland
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         FI0009003230
WKN:          
 
End of Announcement                             DGAP News-Service
 
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