New operating models in subsidiaries
In an environment changing at an accelerating rate, Finnair has taken steps to take advantage of the liberalization trend in European air transport.
In the Scandinavian market Finnair began budget airline operations towards the end of 2003. The 85 per cent majority shareholding acquired in the Swedish airline Nordic Airlink has proved to be an excellent step in the Group's growth strategy.
Through a low-cost operating model, Nordic Airlink offers services more cheaply than its competitor, which operates with a heavy cost structure. According to its new business philosophy, the company will focus on those routes in Scandinavia which have high passenger volumes and little competition.
Nordic Airlink, whose home base is at Stockholm Arlanda, offers price-conscious passengers with seven MD-80 aircraft good links to Oslo, Copenhagen, Gothenburg and Luleå. This year new routes will opened. Frequent flights from these cities' main airports provide an excellent alternative for business and leisure passengers alike.
The Estonian company Aero Airlines AS, which began operating in spring 2002, is the other Finnair subsidiary engaged in flight operations. Since its founding, Aero Airlines has flown between Tallinn and Helsinki. At the end of 2003, the company broadened its operations to routes in Southern Finland. In this way Finnair is able to operate its short-haul turbo-prop routes in a more cost-effective way.
Aero Airlines flies with two ATR-72 turbo-prop aircraft. The number of aircraft will be increased during 2004. The Baltic states' entry into the European Union in May 2004 will open up a new market for Aero Airlines. |