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Finnair Lost $54.3 Million In First Quarter Due To Wrong Marke​t Strategy For China



Finnair A350

According to Skift, Finnair’s plan to gain a larger share of the growing Chinese tourism market has suffered setbacks due to its focus on individual passengers has failed to meet expectations.

Finnair CEO Topi Manner, who took office earlier this year, said that Finnair was wrong to target higher-output individual passengers in 2018.

On April 24, Manner said in the company’s first quarter earnings conference call: “In China, about a year ago, we decided to experiment and focus more on China’s personal outbound travel, especially in some cities. This strategy has only partially succeeded.”

“As a result, we are re-groupping our sales and channel focus, taking into account travel agencies and group tours, and will pay more attention to this in the future.”

Finnair failed to fully consider the restrictions on individuals obtaining EU visas and passports. Before the EU fully liberalized its visa policy, the use of travel agents may not be very cost-effective, from the distribution strategy point, perhaps it’s much safer.

Thanks to Finnair’s advantageous position in Northern Europe, Finnair is able to provide good flights to China and other parts of Asia, and these routes contribute to most of Finnair’s passenger revenue.

In the seasonally weak first quater, Japan’s inbound and outbound tourism performance was strong, helping to offset the poor performance of Finnair in China.

Manner pointed out that the uncertainty of Sino-US relations and the market growth rate after the Chinese Lunar New Year is lower than usual, which is also the reason for the company’s poor performance in the first quarter, but he said that the situation is improving.

In Europe, competition is still fierce. The capacity in the market is very sufficient. As for the Boeing 737 MAX 8, which has greatly affected the competitor Norwegian Airlines, Finnair has not been affected so far.

In the first quarter of 2019, Finnair’s pre-tax loss was $54.3 million, while Finnair’s profit for the same period in 2018 was $18.8 million; revenue increased by 5% to $752.8 million, but was offset by increased operating costs and fuel costs.

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Route Network

Emirates To Restart Flight To Muscat & Entebbe, Boosting Its Network To 94 Cities



Emirates Boeing 777-300ER

Emirates is planning to restart services to Entebbe, Uganda and Muscat, Oman from 1st & 2nd October respectively, this will bring the total number of cities served by Emirates to 94.

Emirates is gradually resuming more operations and rebuilding its route network to provide more transfer opportunities.

From 1st October, Emirates will operate flights to Entebbe with three weekly flights on Thursdays, Fridays and Sundays.

The addition of Entebbe expands Emirates’ African network to 20 destinations, enabling passengers to connect to other destinations with one transfer stop at the airline’s hub in Dubai.

Emirates flight EK 729 will depart Dubai at 1030hrs, arriving in Entebbe at 1500hrs. The return flight, EK 730, will depart Entebbe at 1700hrs, arriving in Dubai at 2325hrs.

From 2nd October, flights from Dubai to Muscat will operate twice a week on Sundays and Fridays.

Emirates flight EK 866 will depart Dubai at 0215hrs, arriving in Muscat at 0330hrs. The return flight, EK 867, will depart Muscat at 0440hrs, arriving in Dubai at 0555hrs.

Flights operated to both cities will be operated by Emirates Boeing 777- 300ER aircraft.

Currently, COVID-19 PCR tests are mandatory for all inbound and transit passengers arriving to Dubai (and the UAE), including UAE citizens, residents and tourists, irrespective of the country they are coming from.

Emirates has also committed to cover COVID-19 related medical expenses, free of charge, if they are diagnosed with COVID-19 during their travel while they are on a trip with Emirates.

This cover is immediately effective for customers flying on Emirates until 31 December 2020. The assurance is valid for 31 days from the moment they fly the first sector of their journey.

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