newstodate.aero
Jul 02, 2019 (newstodate): What more can an airline possibly hope for: sales turn-over up by 30 percent in 2018, passenger volumes rising 33 percent, and volume of operations up by 38 percent?
The answer: profitability!
-The growth of air traffic and the high number of passengers did not result in positive economic results. The financial performance was primarily influenced by the continuing loss of the Tallinn network and the costs of changes in air traffic, including fixed costs for aircraft, says Kristi Ojakaar, Nordica Board Member.
-Nordica has a clear goal to increase profitability. The changes made in the line network at the beginning of this year have already had a positive effect on this year's financial results, and from autumn we will focus only on profitable activities, stop flying unprofitable routes, and focus on increasing the volume of foreign flights through the subsidiary, Regional Jet.
The company has thus turned its strategy away from battling unsuccessfully with stronger competitors, notably airBaltic, on routes from Estonia, and is now focusing instead on a role as capacity provider for other airlines including SAS, LOT and others, as well as bidding on subventioned routes in Sweden and elsewhere when feasible.
The answer: profitability!
-The growth of air traffic and the high number of passengers did not result in positive economic results. The financial performance was primarily influenced by the continuing loss of the Tallinn network and the costs of changes in air traffic, including fixed costs for aircraft, says Kristi Ojakaar, Nordica Board Member.
-Nordica has a clear goal to increase profitability. The changes made in the line network at the beginning of this year have already had a positive effect on this year's financial results, and from autumn we will focus only on profitable activities, stop flying unprofitable routes, and focus on increasing the volume of foreign flights through the subsidiary, Regional Jet.
The company has thus turned its strategy away from battling unsuccessfully with stronger competitors, notably airBaltic, on routes from Estonia, and is now focusing instead on a role as capacity provider for other airlines including SAS, LOT and others, as well as bidding on subventioned routes in Sweden and elsewhere when feasible.