Finnair crisis

Oneworld member Finnair is facing a very serious long-haul emergency with its Asia network cut-off.

Over many years its strategy has been to develop routes across Russian airspace as alternative routing from western Europe for China and South East Asia, at competitive prices.

Just a couple of weeks ago it unveiled its new Business Class and Premium Economy seats. (See BTN 14 February Finnair upgrades.)

Four years in the planning, the new seating is a key part of Finnair’s plan to bounce back from the pandemic. The airline was expecting a rapid roll-out of the new seat, with all long-haul aircraft to have it by the end of the year.  

Finnair put out a statement to say that, with the closure of Russian airspace to European airlines, its Asian network “is not economically sustainable or competitive”. The extra flying time and fuel costs required to bypass Russia would not work commercially.

The airline is able to continue with flights to North America but the demand does not compare.
 
In the statement Topi Manner, Finnair’s CEO, said:“Despite the massive negative financial impacts that the pandemic had on us, our cash position is still strong, c. €1.7bn at the end of 2021. This includes the currently undrawn €400m hybrid loan granted by the State of Finland, which also supports our equity. The State owner has stated that Finnair is a company of strategic interest. Under these new circumstances, we as a company feel that functioning flight connections are even more important for the Finnish economy, safety and security of supply. The company is considering different solutions in case the situation prolongs, and it has an active dialogue with the State of Finland”.

www.finnair.com

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