Sunday 25 March 2012

Finnair mulls options for short-haul flights


Finnair (AY) is considering new options for operating its short-haul flights, including creating a joint venture carrier or outsourcing the services.
The airline continues its cost-savings initiatives. President and CEO Mika Vehviläinen toldATW on the sidelines of Air Berlin’s oneworld joining event in Berlin last week that AY will “evaluate operating a separate company, a joint venture, for all short-haul flights … Either we [will] have our own fleet or the partner will bring in the fleet … We hope to have something in place by summer.”
He said AY’s biggest challenge is managing the cost structure on European flights. It would like to reduce operating costs by 20%-40% on European routes.
“The complete European short-haul structure is changing,” Vehviläinen said. “We want to solve the cost issue on the short haul, but also we want to expand [the network]. We are looking for a joint venture across Scandinavia.”
Article Source : ATW Daily News

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