newstodate.aero

Sep 07, 2022 (newstodate): Taking into account the new geopolitical normal, Finnair is today announcing a new strategy.
   -Finnair’s strategy has long been based on connecting Europe and Asia via the short northern route, using Russian airspace. Following Russia’s invasion of Ukraine and the subsequent closure of Russian airspace, flight times to Finnair’s Asian destinations are now considerably longer, weakening the profitability of the company, the company says.
   -Finnair’s new strategy aims to return to profitability regardless of closed Russian airspace. As Finnair is now faced with a different competitive situation and the weight of the different markets in Finnair’s business is changing, significant structural renewal is required to be competitive.  
   -Finnair’s new strategy focuses on building a competitive airline, with the target of reaching the pre-pandemic comparable EBIT level of at least 5 percent from mid-2024.
   Finnair is thus now to take several actions to implement the new strategy to develop a geographically more balanced network connecting Europe to Asia, India and the Middle East, and North America via Finnair’s home hub Helsinki, including a continued strong domestic presence.
   The actions also include a reduction of the fleet to optimize for the coming network; significantly strengthening unit revenues through enhanced digital offering, competitive products and customer choice; further leveraging various partnerships, most notably oneworld alliance and joint businesses, to strengthen distribution, network reach and product offering; reducing unit costs by approximately 15 percent from the 2019 level to be competitive in all markets; building a sustainable balance sheet that allows the company to invest in the future, and being among sustainability leaders in the aviation industry.