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Finnair Still Sees Asia As A Core Market For Future Growth

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Although it’s been previously reported on the unsatisfactory revenue of Finnair in the Asian market, as Finnair suffered losses in the first quarter of 2019, and some Asian routes did not turn into profit.

It is expected the operation between Helsinki and Chongqing will be cancelled this October. However, these seem to be unable to stop Finnair’s enthusiasm and long-term interests for the Asian market, and still regard this region as the core of future growth.

Topi Manner, Finnair's Newly Appointed CEO
Topi Manner, Finnair’s Newly Appointed CEO

According to media reports recently, Topi Manner, the newly appointed Finnair CEO, said that thanks to Finland’s favorable geographical position, Finnair can provide very efficient and convenient flights from Europe to China and other destinations in Asia; and these routes also contributed a large portion of passenger revenue to Finnair. Although there are some trade tensions and some unfavorable factors for the slowdown of growth in some economies this year, Finnair has seen some signs of a rebound in demand in the near future, and the Japanese market has performed well, which is in line with some recent macro indicators. A positive recovery signal is consistent.

In addition, Robert Öhrnberg, General Manager of Finnair Greater China, also revealed in an interview with the Civil Aviation Resource Network reporter in Beijing late last month that China has always been one of the most important global markets for Finnair and will be rooted and invested in it for a long time. We are willing to work with all parties to explore and dig deep into this market with an open attitude.

In fact, a series of recent actions by Finnair in the Asian market are enough to confirm the “Asia-centrism” of the above executives.

Earlier, Finnair publicly announced that in order to increase the capacity of the Beijing route, starting from November 3 this year, it will open a flight to and from Beijing Daxing International Airport (IATA code: PKX), which Finnair will operates three flights a week on Monday, Wednesday and Sunday, operated by the Airbus A330 widebody aircraft. In addition to the current daily flights operated to and from Beijing Capital International Airport, the number of flights from Finnair to Beijing will increase to 10 flights per week. Finnair has thus become the first foreign airline to announce the opening of the flight service of Beijing Daxing International Airport.

At the same time, Finnair also announced that it will open flights to Busan, South Korea in the summer of 2020, and will become the first and only airline to connect between Busan and Europe. According to plan, starting on March 30 next year, Finnair will use the new Airbus A350 wide-body aircraft to operate round-trip flights between Helsinki and Busan on Monday, Wednesday and Friday.

In this regard, Finnish Chief Commercial Officer Ole Orvér commented: “We are very happy to be the first European airline operating in Busan, which is a good complement to our vital Asian network. Korea is also our largest market in the world. One of which we have been operating for 11 years. Finnair is pleased to offer a new destination for our travellers and continue to grow in Asia.”

It is understood that Busan will be the 20th destination of Finnair’s network in Asia.

Of course, in addition to striving to build and consolidate the route network in Asia, Finnair has fully relied on the advantages of other partners to jointly develop the market and is an indispensable part of its strategic development in Asia. In fact, Finnair has also worked hard in this area recently and has reached a lot of cooperation.

According to the public information collected by the Civil Aviation Resource Network, in June this year, Finnair opened code-sharing cooperation with China Southern Airlines (China Southern Airlines) and Juneyao Airlines. In the same month, Finnair also cooperated with Juneyao Airlines to start the frequent flyer program cooperation.

The code-sharing cooperation between Finnair and China Southern Airlines started on June 1 this year includes the Finnair Guangzhou-Helsinki route and some of China Southern’s destination routes in China. Through the docking of the two-way network, Finnair will add five new destinations in Greater China. Finnair passengers can fly on China Southern Airlines, fly to Changsha, Chongqing, Hangzhou, Nanjing, Sanya, Wenzhou, Xiamen and Xi’an via Guangzhou.

Starting from June 24 this year, Finnair and Juneyao Air officially unveiled the frequent flyer program cooperation which provides mutual benefits and free award booking services for both members. Finnair has thus become the first European Airline Division of Juneyao Airways to carry out FFP cooperation.

Since June 28 this year, Finnair has added the AY code to the round-trip flight HO1607/1608 of Juneyao Air’s route between Shanghai-Helsinki. At the same time, Juneyao Airlines also added the HO code to the same route of Finnair flight AY087/088. In addition, Finnair also carries AY codes on some flights from Shanghai to Harbin, Shenyang, Dalian, Xi’an, Chongqing, Qingdao, Xiamen, Kunming, Fuzhou, Nanjing, Xi’an, Chongqing and Zhangjiajie.

Finnair is also dedicated to satisfy the passengers needs in this important market. For example, Robert Öhrnberg once told reporters that Finnair has always noticed that Asian guests, including Chinese tourists, are very advancing with the various digital technologies, so they have been striving to be as local as possible in this respect. For example, Finnair has long cooperated with China UnionPay to open the UnionPay card payment on the official website. In 2017, Finnair became the first airline in the world to use Alipay as a means of payment on board. In the future, Finnair will spare no effort to continue to do digital products and services for Asia.

Albert K. Field Albert is my name, and travel the world is my game. I began my passion for travel at a very young age, I started this website as a strong means to further explore the world of frequent flyers programs (FFP). The relationship between customers and service providers in the aviation and hospitality industry always seems to be in opposition, however, since the introduction of United Airlines’ Frequent Flyers Programm since 1972*. This has significantly eased the middle spectrum between 2 parties. While the aim of airlines is still to generate more revenue; but for us,as consumers, are also given the opportunity to participate in the bargaining and exploiting from service providers. Living in a world of globalization where big data becomes vital for simulating successful economical activities, most of us will have to travel to other locations whether willingly or unwillingly, while you hearing all this fascinating stories about others, In fact, you too, can blend into the trend. It may not sound like how media illustrates, but indeed there are possibilities for us to have more spontaneous travel without getting held back by financial situation. My website consists of reviews of airline premium cabin products,airport lounges and stay reports of 5-star hotels and their executive lounges across the globe. In addition to all of that, I care the most about their frequent flyers program and loyalty program, which also includes banking partners. Plus, I spontaneously put up reviews and news update regarding premium water brands and restaurants. The purpose of this website is to share all of this information with my audience as well as inviting you to be part of my journey.

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Fleet Management

KLM Signs 21 E195-E2 Confirmation Orders

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Embraer and the Netherlands KLM Cityhopper signed 21 E195-E2 confirmation orders and 14 purchase rights. The 21 confirmed order aircraft will be purchased and leased by Airbus Industrial Leasing business partner Aircastle and ICBC Leasing. At this year’s Paris Air Show, the agreement was announced in the form of 15 confirmation orders and 20 purchase rights letters of intent. If all purchase rights are converted to confirmation orders, the total value of the agreement will be $2.48 billion. It is confirmed that the 21 aircraft in the order will be leased from Aircastle and ICBC Leasing respectively, providing 11 and 10 E195-E2 aircraft to KLM.

Embraer & KLM at the 53rd International Paris Air Show

“KLM’s decision to add a further six aircraft to this order is a significant vote of confidence in our E2 programme”, said John Slattery, President and CEO, Embraer Commercial Aviation. “Delivering 30% lower emissions when compared to KLM’s current E190s, yet still providing a further 32 seats, the E195-E2 will simultaneously increase capacity for KLM at slot constrained Schiphol Airport, while also delivering huge reductions in emissions.”

John Slattery, President and CEO Embraer Commercial Aviation

“For KLM this aircraft is a significant part of our commitment to improving our environmental impact. Not only is the E195-E2 the most fuel efficient lowest emission aircraft in its class, it is also the quietest by a considerable margin – a huge benefit for both our communities and our passengers.

Pieter Elbers, President and CEO of KLM Royal Dutch Airlines
Embraers in factory
Embraers In Factory

The economic and environmental performance of the aircraft makes the E195-E2 the ideal aircraft for growing KLM’s European business and supporting their hub-and-spoke operation, complementing the mainline fleet. This is why Embraer nicknamed the jet – The Profit Hunter. KLM Cityhopper started the process of replacing its fleet of venerable Fokker aircraft for E-Jets in 2008, in order to enhance the existing network and to permit the efficient development of new routes. KLM Cityhopper’s all Embraer fleet currently has 49 E-Jets, the largest E-Jet fleet in Europe – 32 E190s and 17 E175s.

KLM will use a 132-seat layout for the E195-E2 aircraft. Delivery will begin in the first quarter of 2021.

E195-E2 Prototype
E195-E2 Prototype

Embraer is the world leader in the manufacture of aircraft below 150 seats. At present, more than 100 customers worldwide operate the ERJ series and E-jet series aircraft of the Embraer industry.

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Fleet Management

Cathay Pacific Group To Optimise Fleet Allocation With 16 A321neo To HK Express

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Cathay Pacific B777

Cathay Pacific Group is set to receive 65 new aircrafts by 2024 despite recent developments in Hong Kong; in an effort for fleet modernisation, the group’s 3 airlines – Cathay Pacific, Cathay Dragon and HK Express (acquired since March 2019 for HK$4.93 billion or US$628 million) will be each taking deliveries of a dozen new aircrafts that better suits their respective market positioning.

In order to continue strengthen Hong Kong’s position as Asia’s leading international aviation hub; the group’s existing aircraft order is comprised of 21 Boeing 777-9 aircrafts, 12 A350s and 32 A321neo aircrafts between 2020 and 2024, the group has decided upon the following fleet allocation after a comprehensive review.


B777-9XA350A321neo
Cathay Pacific2112n/a
Cathay Dragonn/an/a16 (2020-2022)
HK Expressn/an/a16 (2022- )

Cathay Pacific B777
Cathay Pacific B777

“We have four airlines in the group, each of them has its clear proposition. Cathay Pacific will continue to operate as an international full-service airline providing premium services to customers while Cathay Dragon is our regional full-service carrier. Meanwhile, HK Express will remain as a standalone, low-cost airline focusing on serving leisure travel destinations. AHK Air Hong Kong will continue to be the Group’s all-cargo carrier specialising in express cargo services.

“We will continue to invest in each of our airlines, their products and services. New aircraft are always the best platform to showcase our customer experience offerings which we are continuously enhancing in the spirit of our progressive and thoughtful ‘Move Beyond’ brand values.  Our goal is always to move people forward in life through our ability to connect them to meaningful people, places and experiences through our Hong Kong hub.”

Cathay Pacific Group Chief Executive Officer Augustus Tang

The Chinese market currently makes up around 20% of Cathay Pacific’s daily flights, however, the airline is facing negative exposure in China following criticism from the Civil Aviation Administration of China, resulting the airlines earning of HK$1.34 billion in the first half of year 2019.

HK express currently operates 13 routes to Japan, marks up half of its total destinations, recent meetings between executives at HK Express and Japanese official and business in both Hong Kong & Japan signals the airline group will double its effort for Japanese expansion to offset its negative exposure from China.


Aircraft TypeInventoryOn OrderFirm
Cathay Pacific Boeing 777-200
3

Boeing 777-300 15

Boeing 777-300ER 52 Boeing 777-9X 21

Airbus A330-300 33


Airbus A350-900 23 Airbus A350-900 5

Airbus A350-1000 12 Airbus A350-1000
8
Cathay Dragon Airbus A320
15

Airbus A321 8 Airbus A321neo
16

Airbus A330 25

HK Express Airbus A320 8


Airbus A321 11 Airbus A321neo 16

Airbus A320neo 5

Cathay Pacific Boeing 747-400ERF 6


Boeing 747-400BCF 1


Boeing 747-8F 14

Air Hongkong Airbus A300F 10

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