La Finnish national airline Finnair has grown and prospered in the shadow of its large eastern neighbour. It has benefited from what has been the post-Soviet era since 1991. An era of openness to the outside world for Russia, reflected in the development of the travel market and rising living standards for Russians. In 2019, there were 45.33 million Russian citizens living abroad.
A juicy market, where Helsinki airport served as a hub for the rest of the world. Before the health crisis, Finnair served Russia with eight daily flights. That's four flights a day on Moscow and four others to Saint Petersburg. Until 2018, there were also several weekly frequencies to Yekaterinburg. The airline had also launched four weekly flights to the Belarusian capital Mink. " All these routes are now suspended until the end of October. Russia accounted for 15% of our traffic in Europe" explains Javier Roig, Director, Southern Europe, Finnair.
Living without Russian airspace
But above all, it was the possibility of flying over Russian airspace that made the Helsinki hub so valuable. Over the last decade, the airport has gained a privileged position in Europe for services to Asia.. This period seems to have come to an end with the consequences of the Russian war in Ukraine, which has resulted in the Suspension of air traffic between the EU and Russia.
We'd almost be happy to operate today with only the Covid constraint, such is the difficulty of the situation.
" All our flights leaving Helsinki heading east entered Russian airspace almost immediately.. The closure of this airspace to foreign airlines is a real shock for our company. We would almost be happy to operate today with only the Covid constraint, given the difficult situation." says Javier Roig.
For Finnair, the post-Soviet period has now been succeeded by a period that can be described as 'post-Russian'. And it could last a long, long time. It forces the Finnish carrier to completely redefine its growth model.
" We were very nimble as soon as the ban on flying over Russian territory was put in place. We suspended all our flights for a week to analyse what we had to do. We decided to resume some of our destinations in Asia with a new southern air route via Poland, Turkey, Turkmenistan Kazakhstan or Kyrgyzstan to Korea, Japan or Shanghai. Which nevertheless extends our flights by 3 to 4 hours. As well as consuming more oil, this means we can't make a round trip with the same aircraft in 24 hours." says Javier Roig.
" It is true that our strength lies in our Asian network.. That's why we're continuing our flights to SeoulShanghai and Tokyo. Freight helps to balance the books on these routes. And we continue to serve India, Thailand and SingaporeFinnair's CEO explains: "Surprisingly, demand from Asia has returned despite these inconveniences. "Surprisingly, demand for flights to Asia has returned despite these inconveniences." he adds.
This summer, Finnair is serving six destinations in Asia. It has had to put the resumption of services to the rest of Japan on hold. (Fukuoka, Nagoya, Osaka and Tokyo Haneda) as well as the launch of the Busan route in Korea. On 5 April, on the other hand, it inaugurated three weekly flights to Mumbai. The timetables as defined will apply until the end of October. " We won't be adjusting our schedules from week to week according to the news. Unless, of course, Russian airspace reopens completely..." adds Javier Roig.
Expansion outside Asia
As part of its drive to win new markets, Finnair is turning its attention this summer to the West - and more specifically to the United States. United States. This includes optimising the use of the long-haul fleet. Finnair has just opened its first Helsinki-Dallas route, which will be followed by Helsinki-Seattle on 1 June.. " It's a market where the yield is very low because of strong competition. But we don't have many alternatives at the moment. However, we are looking hard at other destinations in Asia. Like Kuala Lumpur, for example. We're literally reinventing ourselves. Like with some long-haul flights from Stockholm" says Javier Roig.
In Europe, the summer will bring a host of sunny destinations, as well as an increase in flights to the main European capitals. " Up to five times a day on Paris CDG and also on Nice. We also have at least two daily flights to Brussels and Geneva. I'd also love to find a line on Lyonbut with timetables better suited to French passengers" says Finnair's CEO.
The airline's strategic agility also lies in its positioning towards a premium market. Particularly the business market. " Despite this very unfavourable environment, Finnair has not given up on the modernising its on-board product - particularly long-haul. We have just launched our Premium Economy and we've also just modernised our business class. We have a revolutionary chair which we are launching on the Helsinki-Singapore route in May. It offers more individual space, a real bed with mattress. Plus countless details such as a wireless mobile phone charger, several USB sockets and a large video screen." says Javier Roig.
