FINLAND: Finnair Steady Growth

Finnair Chief Executive Officer, Topi Manner, started his speech by stating that the goal of the carrier now is to deliver sustainable, profitable growth, as the airline moves forward from its previous phase of accelerated growth.

Finnair, while it’s home market is fairly small, as Finland only has more than 5.5 million people living in the country, the airline and its main hub, Helsinki Vantaa Airport (HEL), became a connecting point between Europe and Asia.

We are also a big, small airline in a sense that we are big enough to do things, we are small enough to get them implemented, the airline’s CEO said, adding that we are agile, we are known to have made courageous and determined decisions.

Like the decision to become the launch customer for the Airbus A350 in Europe. Previously, Finnair also became the global launch customer of the ATR 72 and the MD-11.

Some of these bold decisions are also to be made going forward, notes Manner. So, where does Finnair go next

Helsinki (HEL) became a connecting point between Europe and Asia for Finnair and it would further strengthen ties between Finland and Asia, as the shortest northern route is available due to the optimal geographical position of Helsinki, the airline’s CEO stated.

In the past five years, Manner noted, Finnair doubled its capacity to Asia. Interestingly enough, 50% of the carrier’s revenues come from transfer passengers, while local traffic contributes 30%. 73% of the transferring passengers are from Asia, the airline’s data shows.

And Finnair plans to grow further in the continent by focusing on Asian megacities, such as Beijing, China or Tokyo, Japan, where the company plans to further increase frequencies, rather than adding more destinations in Asia.

Its current business model allows it to be placed between the giant airlines on one hand and low-cost carriers on the other hand, Manner says.

But low-cost carriers, namely Norwegian Air Shuttle, offer no resistance to Finnair in Scandinavia the only two destinations the long-haul low-cost carrier serves are Thailand, namely Bangkok (BKK) and Krabi (KBV), meaning Finnair has absolutely no pressure from the lower price point.

The only other local competitor in Northern Europe is Scandinavian Airlines System (SAS), which flies to Beijing, Hong Kong, Shanghai and Tokyo.

The Finnish airline announced that it would introduce Premium Economy class cabin to further diversify its product on board in 2020. Finnair’s costs in fuel have been growing faster than its revenues, the company’s presentation highlighted, with the former growing by 6.1% since 2014, while the latter has grown 5.5% since 2018.

A premium economy cabin would allow Finnair to cater to the demand of the passengers and offer more comfort, as the Senior Vice President of Customer Experience, Piia Karhu, has highlighted by stating that over 50% of leisure and business class passengers responded that they would very likely or extremely likely travel on the newest cabin offering.

For Finnair itself, Premium Economy makes for very valuable real estate, Karhu said, as the airline is able to sell Premium Economy seats from one and a half to two times higher than basic economy prices, improving yields.

The airline plans to invest between $3.8-4.4 billion (€3.5-4 billion) into its fleet and other assets until 2025. Some of that investment would go into the growth, but most of it would be dedicated to the replacement of its aging fleet.

The average age of Finnair’s 83 aircraft is 10.2 years, with its narrow-body fleet, especially the Airbus A319 (eight aircraft) and the Airbus A320 (10 aircraft), being by far the oldest aircraft that the carrier operates, with an average age of 18.6 and 17.4 per aircraft, respectively.

As of October 30, 2019, Finnair only has five Airbus A350 aircraft on order and no other jets planned, Airbus Order and Deliveries file states.

Over the next six years, the Helsinki-based company plans to operate 100 aircraft in total, with approximately 30 of those being wide-bodies.

Ole Orvér, the Chief Commercial Officer of the company, did not specify any concrete plans about Finnair’s future fleet, however, stated that while the airline was happy with its current narrow-body fleet, not necessarily the same could be said in the future.

Going forward, we will have something that brings low cost, efficient operations and of course a customer proposition that works, Orver said, but whether Finnair will switch to a single type of short-haul aircraft, he was reluctant to answer, stating that it is purely down to price.

During 2019, the airline announced new partnerships with Fiji Airways and China Southern Airlines to further increase capacity and route offerings into Asia, including its existing oneworld alliance agreements with Cathay Pacific, Japan Airlines, Malaysia Airlines, SriLankan Airlines and Qantas.

Furthermore, the Finnish carrier plans to operate more than 100 weekly flights to Asia in Summer 2020. Newest destinations in 2019 include Beijing’s newest airport, Daxing International (PKX), Sapporo, Japan (CTS), while Busan, South Korea (PUS) and Haneda International Airport (HND) in Tokyo, Japan are set to be inaugurated in March 2020.

Currently, the airline has two main time banks when long-haul flights depart, between 5 and 10 AM and between 3 and 7 PM, with some flights departing around midnight.

In 2020, Finnair plans to offer midday departures, to allow smoother connections for transferring passengers. Following the expanded time banks, the airline will utilize its assets in a more efficient way, notes Ole Orvér.

All in all, Finnair’s goals are clear as the snow up in Lapland – expanding into the ever-growing Asian market and securing crucial slots and time windows to land or depart from the busiest airports in the region.

Finnair will hold the monopoly on direct flights between Busan, PUS and Sapporo for now, as no other European airline serves these two Asian cities.

However, the question remains how sustainable this model is long-term, even if the airline secures the limited capacity into the future, as current industry trends are shying away from the hub-and-spoke model and instead focusing on point-to-point traffic.

Nevertheless, the current conditions that Finnair operates in, including its top of the line wide-body fleet of 14 Airbus A350 and eight Airbus A330 aircraft, allows it to be the dominant airline on the Siberian air corridor, a crucial junction between Europe, China and Japan.

The fact that most of its passenger revenues come from transferring travelers, mitigates the risk of low-cost carriers putting a strain on the airline’s earnings on intra-European flights, as passengers are fed through its hub in Helsinki to connect either to or from Asia.

World’s Top 10 Airlines of 2019

The World’s Top 10 Airlines of 2019

1. Qatar Airways

2. Singapore Airlines

3. ANA All Nippon Airways

4. Cathay Pacific

5. Emirates

6. EVA Air

7. Hainan Airlines

8. Qantas Airways

9. Lufthansa

10. Thai Airways

Singapore Airlines has lost its “Best in the World” gong with Qatar Airways back on top after nabbing the coveted title at the prestigious 2019 Skytrax Awards.

Qatar also walked away with World’s Best Business Class, World’s Best Business Class Seat and Best Airline in the Middle East. It’s the fifth time the Middle East carrier has taken out the top gong at the awards, after losing the top spot in 2018 to Singapore.

Singapore Airlines slipped into second place, while Japanese airline ANA All Nippon Airways received the bronze medal.

Known as the Oscars of the aviation world, the World Airline Awards are handed out annually by Skytrax, the leading global authority on airline and airport service quality.

In its 19th year, the ratings are based on the world’s largest passenger satisfaction survey, which took place from September 2018 to May 2019 with online voting in English, French, Spanish, Japanese, Chinese and Russian.

This year passengers from over 100 countries voted on 300 airlines from around the globe, while Skytrax said there were 21.65 million eligible entries.

Australian airline Qantas made a return to the top 10 list for the first time in three years, after coming in at 11th spot in 2018 and slipping to 15th position in 2017.

Virgin Australia came in at 25th, down from their 22nd ranking in 2018.

In a statement, Skytrax CEO Edward Plaisted admitted not everyone would agree with the rankings’ assessment.

We operate the survey and awards in a 100 per cent independent and impartial format according to the commitment we gave back in 1999, he said during the awards ceremony at the Paris Air Show.

While every winner may not be the favourite of everyone, those that disagree should understand that these are the Passenger’s Choice Awards.

Jetstar came in at 53rd overall, dropping from 46th position in 2018, while Air New Zealand was ranked 16th.

Jetstar however ranked third in the ‘World’s Best Long Haul Low-Cost Airlines’ and sixth in the ‘World’s Best Low-Cost Airlines’ for 2019.

Fiji Airways was awarded first place in the “Best Airline Staff in Australia Pacific” category, which recognises the combined airline staff service for both on-board and ground staff, in the Australia Pacific region through passenger feedback and Skytrax evaluation.


Tourism Observer

FIJI: Fiji Airlines Partners With Oneworld Connect

Oneworld has announced new Oneworld Connect partner concept following something that Star Alliance launched last year with one Chinese airline, although seems that the concept here is more deeper cooperation.

Oneworld Connect requires connect partners only to offer priority check in and boarding to all eligible Oneworld elite members.

Members from Oneworld programs that are sponsoring the airline will have the usual benefits of earning and redeeming miles in addition to having lounge access etc.

Oneworld states that they are in discussions with airlines in Americas, Europe and Asia-Pacific regarding this concept.

oneworld has launched a new platform for linking up to the world’s premier airline alliance – enabling customers to enjoy more services and benefits across an even more extensive global network.

The first airline to join in the new capacity as a oneworld connect partner will be Fiji Airways.

A date will be announced in due course for when Fiji Airways will start offering oneworld connect services and benefits. Meantime, it is business as usual.

Oneworld connect is the first new membership platform unveiled by oneworld since the alliance was originally announced 20 years ago.

oneworld is in discussion with other carriers interested in participating in the programme, from various parts of the world including the Americas, Asia-Pacific and Europe.

Each oneworld connect partner will need to have a minimum of three oneworld members as its sponsors to be initiated into the programme.

The initial oneworld sponsors of Fiji Airways will be all four of oneworld’s original founding members – American Airlines, British Airways, Cathay Pacific and Qantas.

The Australian carrier will additionally mentor Fiji Airways through its oneworld connect implementation process.

American Airlines, Cathay Pacific and Qantas already code-share and have frequent flyer links with Fiji Airways.

British Airways and Fiji Airways are currently discussing areas for potential bilateral cooperation.

oneworld connect partners will provide select alliance benefits to frequent flyers from any oneworld member airline travelling on their flights, with a more extensive range of benefits offered with their oneworld sponsors.

Customers with Emerald, Sapphire or Ruby status in any oneworld member airline’s frequent flyer programme will be able to use priority check-in desks, where available.

Also, customers with Emerald or Sapphire status will be offered priority boarding.

The additional benefits offered by oneworld connect partners to customers from their oneworld sponsors and vice versa include:

Through check-in of passengers and their baggage for journeys including connections between a connect carrier and any of its oneworld sponsors.

The ability to earn and redeem frequent flyer rewards, and earn frequent flyer status points, for eligible flights.

For customers from oneworld connect airlines, these benefits depend on the oneworldconnect partner offering a frequent flyer programme.

Access to select lounges at key airports for First or Business Class passengers or those with eligible top-tier frequent flyer status.

Select other customer benefits may also be offered between oneworld connect partners and their oneworldsponsor airlines.

All oneworld connect partners will make their networks available via Global Explorer, the round-the-world fare offered by all oneworld members and select other airlines. Fiji Airways already does so.

All oneworld connect partners will be required to maintain IATA IOSA safety certification.

oneworld’s regular range of services and benefits remain in place for customers flying with the alliance’s full member airlines and their affiliates.

oneworld Governing Board Chairman Pekka Vauramo, CEO of Finnair, said: In the 20 years since oneworld’s conception in 1998.

Global airline alliances have expanded their breadth to the extent that they now account for 60 per cent of total industry revenues and capacity globally, and 70 per cent of revenues between the world’s top 125 business city airports.

With most of the world’s biggest airlines already signed up, global airline alliances have reached maturity.

In the future, oneworld will target as full members large airlines that have a significant presence in the alliance’s prime target market, providing connections between the world’s leading business centres.

Meantime, oneworldconnect enables us to bring together more airlines to complement the alliance’s global leaders, so customers can earn rewards and feel recognised while travelling even further.

oneworld CEO Rob Gurney added: oneworld’s current network of more than 1,000 destinations in 150 plus territories offers far-reaching global coverage, but there are still some regions where we would like to strengthen our presence further.

With fewer potential new candidates available to recruit based on our established membership criteria.

oneworld connect enables us to link up with other airlines whose networks are relevant to a subset of our members, who cannot meet oneworld’s full membership requirements at this stage or who are not interested in full membership at present.

This enables us and them to offer our customers more services and benefits across an even wider network and strengthen our relationship going forward, with a streamlined and rapid path to full membership later on where it makes sense for all parties.

Fiji Airways CEO Andre Viljoen stated: Fiji Airways is thrilled and honoured to be the first oneworld connectpartner globally.

We are delighted to link Fiji, and the South Pacific to the world’s premier airline alliance and deepening our relationships in particular with Qantas, American Airlines, British Airways and Cathay Pacific.

This important step for our airline enables us to offer more services and benefits to our own customers along with the others in the oneworld family, to achieve a greater presence for our airline internationally and to build on the in-bound tourism that is so vital to our home nation and our region.

Qantas Group CEO Alan Joyce said: “As a oneworld founding member, it is great to see the alliance evolve to bring additional benefits to more customers and expand its joint network. We’ve worked closely with Fiji Airways for many years and are pleased to serve as its mentor as it comes on board as the first oneworld connect partner.”

American Airlines Chairman and CEO Doug Parker added: As another oneworld founding member, American Airlines is excited to be playing our part in this latest key development for what has become the world’s premier airline alliance, now making access to the South Pacific more attractive than ever.

British Airways Chairman and CEO Alex Cruz stated: British Airways looks forward to developing links with Fiji Airways as a oneworld connect partner and sponsor, for the benefit of both our airlines, our customers and the wider oneworld community.

Cathay Pacific Chief Executive Officer Rupert Hogg concluded: Cathay Pacific was proud to play our part in founding oneworld 20 years ago and establishing it as the leading quality alliance.

We are proud today to be playing our part again in getting this exciting new membership platform oneworld connect off the ground, as a sponsor of our long-term code-share partner Fiji Airways.

So, three of the Connecting Partner backers of this airline have frequent flier agreement in place at this time BA and Fiji are exploring opportunities.

The benefits are very light borderline non-existent if you happen to be an elite member with an airline that is not one of the backers. One of the reasons in the future to go with one of the major programs within the alliance.

Not sure why Oneworld draws a line between Nadi and Santiago on the graphics that they use the market the alliance on the presentation? I am not aware of that there would be any flights between these two destinations unless there was an announcement made today.

The only other airline that would probably fit this model in my mind is the Air Tahiti Nui that already has partnership in place with both AA and Qantas and perhaps with other Oneworld airlines too.


Tourism Observer

FIJI: Tropical Cyclone Josie Makes It Un Safe To Go To Fiji, Serious Impact On Tourists.

FIJI TRAVEL advice warns that the country is under a constant level of threat from torrential rain.

Cyclone Josie is the latest to hit the country and has caused widespread disruption.

An archipelago made up of more than 300 islands, Fiji is a country in the South Pacific Ocean and is a popular holiday destination thanks to its beautiful tropical beaches and paradise resorts.

Fiji is under threat from a dangerous tropical Cyclone with torrential rain having spread across the country leaving travel advice questioning if the country is safe to travel.

Named Tropical Cyclone Josie, heavy rain have occurred across all islands with widespread flooding affecting the western and northern areas.

Alongside strong winds, heavy rain and severe floods have damaged homes, business and the livelihoods of Fiji residents.

Fiji Prime Minister Voreqe Bainimarama released a statement saying - We are now at an almost constant level of threat from these extreme weather events.

We need to get the message out loud and clear to the entire world about the absolute need to confront this crisis head on.

As a nation we are starting to build our resilience in response to the frightening new era that is upon us. We’re at fight for our very survival.

We are now at an almost constant level of threat.

Aid distribution is underway in the Western part of the division.

So far there have been four death reports and one man is still uncounted.

More than 1,000 people are reported to be staying in evacuation centres.

Rising water levels are rising in the major rivers of Viti Levu with the prediction that this will cause flood waters to spread across Nadi town, Ba town, Tavua and Ra towns.

The Low lying areas of Lautoka and Sigatoka including Navua, Nausori and Korovou are also expected to be affected.

Fiji sees around 20,000 British tourists every year and although the majority of holidaymakers travel trouble-free, the contest level of threat from tropical weather Mr Bainimarama describes, is having serious impact on tourists.

On 1 April, the New Zealand Red Cross released a statement on Twitter to say: “#TCJosie is causing flooding, high winds, power cuts and some evacuations in #Fiju. Stay safe everyone.

Although, the Fiji National Disaster Management Office has since reported that flood waters are starting to reduce.

The Fiji Roads Authority (FRA) reported that 40 roads in the Western Division, 27 in the Central Divison and seven in the Northern Division have been closed.

The report has since added: Some roads have reopened in flood affected parts of the Western Division as water levels continue to slowly recede.

The FRA is closely monitoring the situation of the roads and we are urging the public to remain vigilant, tune into the local radio and listen to the advice of the emergency services.

On Sunday, Fiji Airways announced that a number of flights have been cancelled due to the severe weather conditions and that passengers should check the status of their flight before travelling.

An updated report on Monday stated that flights are now running again at a reduced service but that passengers.

This message continues Today will Fiji Airways advising customers to check before departing and some disruption still occurs.

Meanwhile, Cyclone Nora tore through Queensland Australia as strong winds and heavy rain caused power outages and devastation.

The far north of Australia was lashed by a Category 3 tropical cyclone over the weekend, bringing the potential for flooding.

Tropical Cyclone Nora reached the northern state of Queensland late on Saturday, where it impacted the western coast of Cape York, at the northern tip of the state.

There were no reports of injuries so far, although utilities company Ergon Energy said more than 230 homes had temporarily lost power.

The Bureau of Meteorology had predicted the cyclone would reach Category 4 status but it weakened as it crossed from the Northern Territory east into Queensland.

The bureau reported winds of up to 100 kilometres per hour (62 mph), with up to 110 millimetres (4.33 inches) of rainfall.

Local witness Liam Hartley, said: It got a bit hectic about midnight when we got the brunt of it.

We went to sleep about two o'clock when it started to die down.

A lot of the roads are blocked by trees and a lot of power lines down, so it'll be a while before they're back on their feet.

We'll probably stick around and see if the council needs any help cleaning up.

The cyclone has since been downgraded to Category 2 and is now traveling south down the coast, where it is expected to reach Kowanyama, in Queensland’s Gulf Country.

The Premier of Queensland Annastacia Palaszczuk, said: “As Tropical Cyclone Nora is still a category 2 we are not out of this yet.

We want to make sure that all of the communities around the Gulf are still prepared because as we know cyclones can change their direction.

A tropical cyclone warning is still in place between Cape Keerweer and Karumba for the next 24 hours and between Karumba and NT border for the next 48 hours.

Cyclone Nora destroyed trees and brought down power lines across Pormpuraaw, where the Queensland Fire and Emergency Services (QFES) urged people to stay away from fallen electrical cables.

Emma Oliveri from Ergon Energy said: We can assure customers there that we will get crews in as soon as it's safe to do so.

Because of flooding in some of these communities… we're heavily reliant on aircraft to get our crews in.

We need to establish that it's safe to fly and safe to land at the local airstrip. I can't give you a time frame.


Tourism Observer

FIJI: Tourists Flee Fiji Over Cyclone Disaster

International tourists began fleeing cyclone-devastated Fiji on Monday amid fears the death toll from the most powerful storm to ever hit the Pacific island nation is set to rise steeply.

International tourists began fleeing cyclone-devastated Fiji on Monday (Feb 22) amid fears the death toll from the most powerful storm to ever hit the Pacific island nation is set to rise steeply.

The official body count from severe tropical cyclone Winston stands at six but the Fiji Broadcasting Corporation reported at least 10 were dead, with fears for another seven fishermen missing at sea.

The super-storm lashed the popular tourist destination overnight on Saturday, packing gusts of 325 kilometres per hour. It was the first maximum category five cyclone to hit Fiji and left a trail of destruction, flattening scores of homes and crippling infrastructure.

Oxfam's Pacific regional director Raijeli Nicole said some of the remote communities that bore the brunt of the storm had still not been heard from and officials feared the worst.

"The Fijians are desperately trying to repair severed lines of communication, but they hold grave fears that the news waiting for them will be dire," she said.

"Given the intensity of the storm and the images we have seen so far, there are strong concerns that the death toll won't stop climbing today and that hundreds of people will have seen their homes and livelihoods completely destroyed."

International tourists caught up in the disaster began to leave as flights resumed at Nadi airport after a two-day suspension.

Air New Zealand confirmed one of its aircraft departed at 9.30am (5.30am Singapore time) and other carriers including Jetstar, Virgin Australia and Fiji Airways were also expected to begin operations again.

Fiji's economy relies on tourism and the island chain is a major destination for Australians and New Zealanders.

Melbourne man Jeremy Bree told the Australian Broadcasting Corporation that he heard trees being ripped from the ground as he sat out the storm in a hotel at Denaru on the main island Viti Levu.

"It was pretty amazing just looking out and seeing the wind gusts just absolutely buffeting the trees," he said. "The noise around was something I've never heard before, it was a real harrowing whine that came through."

The airport's opening allowed aid efforts to ramp up, with Australia announcing a Aus$5.0 million (US$3.6 million) package including basics such as food and drinking water.

Foreign Minister Julie Bishop said Canberra had also offered the use of a P-3 Orion aircraft and MRH-90 helicopters to reach outlying islands. "The full impact of this disaster is still not known. We stand ready to provide further assistance to support Fiji's relief and recovery effort," she said.

The island nation has declared a month-long state of natural disaster after the storm that Prime Minister Voreqe Bainimarama described as an "assault on Fiji".

All schools, many of which are being used as evacuation centres, were ordered closed for one week and military leave has been cancelled so troops can help with the clean-up.

The acting head of the Red Cross's Pacific office Ahmad Sami said an accurate assessment of the storm's impact would take time. "We anticipate that humanitarian needs will be very high," he told AFP.

"This is the first time that Fiji has experienced a cyclone of this magnitude in their history, a category five, so we're still trying to find out the figures."

He said priorities were restoring power and repairing damaged homes, as well as maintaining drinking water supplies in more than 700 evacuation centres.

FIJI: Fiji Airways Outlines A330-300 Operation in 16Q1

Fiji Airways earlier this month has outlined planned Airbus A330-300 operation, as the aircraft scheduled to join the airline’s operation in 16Q1.

As of 15DEC15, planned A330-300 operation from January to March 2016 as follow.

Nadi – Auckland
06JAN16 – 14JAN16 Day x127
15JAN16

Nadi – Los Angeles
16JAN16 – 30JAN16 Day 6
02FEB16 – 08FEB16 Day 12
14FEB16 – 20FEB16 Day 67
27FEB16 – 19MAR16 Day 6
24MAR16 – 26MAR16 Day 46

Nadi – Sydney
16JAN16 – 30JAN16 Day 6
11FEB16

Configuration of the A330-300 is C24Y289.