Services and Products
Finnair's service in European scheduled passenger traffic is based on the morning-evening concept favoured by business passengers. In a comparison of service quality among European airlines, Finnair has maintained its position among the top performers, even though services on flights have been altered in order to cut costs. Owing to low business class demand, a one-class service concept was introduced on flights to Eastern European destinations in September.
At the beginning of September, Finnair implemented its biggest ever price reform. Pricing of domestic, Scandinavian and European flights was changed from prices based on rules and restrictions to flight-based pricing determined by supply and demand.
Towards the end of the year, passenger volumes on Finnair's scheduled passenger flights clearly grew more strongly than on other European airlines' flights, which shows that the price reform has fulfilled customers' expectations and needs. It has also brought additional clarity, flexibility and choice both to business and to leisure travel.
In September, in order to improve transparency in flight pricing and comparability of service, Finnair introduced in connection with ticket sales a service fee consisting of the costs relating to booking, pricing and ticket writing. The size of the fee varies, depending on the mode of transaction and the distance travelled. At the same time, a fee also began to be charged for telephone service.
Demand in Asian traffic, which declined due to the SARS epidemic, returned to a growth trend during late summer-early autumn. Capacity removed from the Helsinki-Beijing route in the early summer was gradually restored. From the beginning of April 2004, Finnair will operate a daily flight service to Beijing.
The Asian route network was supplemented by three flights a week to Osaka from June and to Shanghai from September. From June 2004 the addition of a sixth MD-11 wide-bodied aircraft to Finnair's fleet will enable flight frequency on the Shanghai route to be increased to five flights a week.
After this increase to capacity, Finnair will provide 31 connections per week to Asian destinations. In the summer months of 2003, the service to Tokyo Narita was supplemented by one extra flight per week. In connection with last spring's capacity arrangements, a decision was made to fly to Miami twice a week during the winter season. Due to the popularity of the route, it has been decided to fly to Miami again in winter 2004/2005.
In Europe Finnair's network was expanded through new codeshare destinations agreed with SWISS, British Airways, SN Brussels Airlines and Air France. It is now possible to fly with Finnair route codes via Zurich, Manchester, Paris and Brussels to, for example, destinations in the UK, the South of France and Spain. Finnair, for its part, offers its partners good connections to its Asian routes.
Towards the end of 2003, Finnair acquired an 85 per cent shareholding in the Swedish airline Nordic Airlink, which began operating budget flights from Stockholm Arlanda to Oslo, Copenhagen, Gothenburg and Luleå. During 2004 the number of routes will be increased. Operating from main airports, Nordic Airlink will offer good connections between cities to business and leisure passengers alike. Nordic Airlink is the largest budget airline operating between the Scandinavian countries.
As a result of oneworld cooperation, two new sales products have been developed for member companies. The eventflyer product is intended for the conference travel market. The businessflyer product consists of a series ticket aimed at small and medium-sized enterprises. In addition, Finnair aims to develop the electronic ticket concept during 2004 so that a passenger can travel seamlessly on alliance airline flights using an e-ticket.
SWISS announced that it will accept an invitation to become a member of the oneworld alliance, which has important implications for Finnair. SWISS will be a significant partner, offering Finnair good connections to its Central and Southern European network.
Finnair has improved its own electronic customer service by developing the functionality of its automated check-in machines. At Helsinki-Vantaa and Stockholm Arlanda, passengers can perform check-in themselves also for connecting flights. The service works with both electronic and traditional tickets. Passengers travelling to London and Stockholm can buy a ticket for an airport train in connection with their air ticket purchase. |