The Magic Formula

Finnair is pursuing a path of increased passenger comfort and convenience, improved business performance, and enhanced commitment to sustainability

- Marc Almagro

In January this year, Mr. Topi Manner became the CEO of Finnair and in June he visited Singapore to celebrate the airline’s eighth successful year of operation in the country. “We continue to see growth opportunities here in Singapore,” Mr. Manner declares with confidence. Finnair has 100 destinations in Europe and 19 in Asia, including Singapore. The traffic in the region, which is on a rapid growth path, has been fueling corresponding growth for the airline.

“As an airline, we’re all about connecting Europe and Asia. Last year our capacity grew 15 percent; this year we have estimated it will grow 10 percent — clearly faster than the market.” In comparison, the annual average market growth for global aviation is about 5 percent. “Bookings for next winter have gone up by 33 percent — by one third — which is significant.”

In connecting Europe and Asia, Finnair’s sustainable competitive advantage is the short northern route and the optimal geographical position of Helsinki. “Travel time (from different overseas destinations) is very competitive, and travel experience in Helsinki airport is seamless and convenient. Based on those competitive advantages, we continue to double down on our Asia strategy going forward.” Singapore is Finnair’s center for its Asia Pacific operations, and covers a diverse market that includes India, Thailand and Australia. (The main headquarter, meanwhile, is in Helsinki.)