Finnair’s strategy review: Finnair enters the next phase
Finnair Plc Stock Exchange Release 7 May 2015 at 09:05 a.m. EET
As a part of its annual strategy review, Finnair's Board of Directors has approved a new vision and updated the company’s mission and strategic targets.
Finnair’s direction: Unique Nordic experience
Finnair’s new vision is to offer its passengers a unique Nordic experience.
Finnair’s route network connects Asia, North America and the northern regions of Europe and beyond through its hub at Helsinki Airport. The operations are based on quality, reliability, safety and design inspired by Nordic pure nature. The vision is expressed for example in easy-to-use digital services and in the enhancement of Business Class services. The goal is that as a result of the service offered at the airport, in lounges and on board, customers arrive at their destinations relaxed and with peace of mind.
Finnair’s vision gives direction to all Finnair employees and partners in the areas of customer service, operations or development of the company operations and services.
Finnair’s mission: fast and smooth connections
Finnair’s mission is to offer
- the smoothest, fastest connections in the northern hemisphere via Helsinki
- the best network to the world from its home markets.
Updated strategic objectives for the company
- Double Asian traffic by 2020 from the 2010 level
- Deliver a unique customer experience and achieve world-class operations
- Create shareholder value
The core of Finnair's strategy is taking advantage of the growing demand for traffic between Europe and Asia. The strategy is based on the growing markets in Asia, fast connections between Europe and Northeast Asia, quality service, and cost-efficient, punctual operations. Helsinki's geographical location provides Finnair with a natural competitive advantage, as the fastest routes between many destinations in Europe and megacities in Asia go through Helsinki. In implementing its strategy, Finnair is committed to creating added value for its customers and shareholders.
To achieve these strategic objectives the company Board of Directors has approved six strategic implementation areas for 2015 – 2017:
- Intercontinental growth with Northeast Asia focus
- Customer excellence
- People and Finnair culture
- Funding and capital structure
- World-class operations
In its operations Finnair enters a new phase during the 2015–2017 period, as it becomes, from October 2015, the first European operator of the next-generation Airbus A350XWB aircraft. Finnair aims to maximize the competitive advantage and ensure competitive funding for the fleet investments in order to achieve its strategic objectives.
Finnair’s financial objectives
Finnair’s Board of Directors increased the target level of Adjusted gearing from maximum of 140 per cent to maximum of 175 per cent and confirmed other earlier long term financial objectives:
- EBIT margin 6% over cycle
- EBITDAR margin minimum of 17% over cycle
- Adjusted gearing maximum of 175%
- Return on Capital Employed (ROCE) minimum of 7%
Finnair communications, tel. +358 9 818 4020, comms(a)finnair.com