Annual Review 2008

Finance Leisure Responsibility Future 2008 meant turbulent times Holidaymakers are now seek- Sustainable development is A proud history is a fine for airlines. The upheaval ing quality. Service is a com- vital for the whole industry.­ achievement, but it’s more will continue, but there will be petitive asset and passengers can An airline’s ability to bear respon­­ important to look to the future. survivors. enjoy the world’s best champagne. sibility begins with its finances. How will we be flying in 2093?

1

CONTENTS

02 Faraway is a long journey, editorial 03 ­­Finnair’s year

Finance 06 Key figures 2008 06 ­Finnair’s investment story is growth 11 Turbulent times for airlines 13 Playing Monopoly in the sky, column 14 Asian flights also carry cargo 16 Surviving the maelstrom 18 Minding the customer around the world 22 Via Helsinki 24 Roller coaster excitement, column 25 A new route arises by painting the horizon

Leisure 30 Holidaymakers favour quality 33 Destinations Seoul, Sintra, Mumbai, Mount Fuji and Bucharest 46 Every contact with the customer is a moment of truth 48 Fine cuisine at altitude 53 One thousand and one flight operations 55 A good story is never forgotten 58 In the eye of a snowstorm, column

Responsibility 60 The environment as part of social responsibility 64 A bamboo-framed existence 68 Energy under control in Technical Services 70 Into a new decade with a modern fleet

Future 72 ­Finnair time machine takes you to the future 75 A stormy anniversary 78 Check-in 2093

83 ­Finnair Group’s Board 84 ­Finnair Group’s Management

The 2008 Annual Review was inspired Concept: Miltton Oy. Project ­Manager Contact Information: ­Finnair Plc by magazines. Topicality and a fast Leena Löytömäki, AD Sampsa Helsinki-Vantaa Airport tempo also define ­­Finnair’s operating ­Voutilainen, Graphic Designer Jonatan Tietotie 11 A, FI-01053 ­Finnair practices. We have to look forward, be- Eriksson, Illustrator Anton Yarkin Switchboard: +358 9 818 81 low the surface and offer our custom- English translation: Steven Crockatt www.­finnair.com ers a memorable experience. Photos: Tim Bird, Senja Larsen, Juha www.­finnair.com/group Editorial board: Christer Haglund, Salminen, Leif Weckström, Rasmus ­Taneli Hassinen and Maria Mroue Wilen, Shutter­stock and ­Finnair Printed by: Edita Prima Oy, Helsinki 2008 Airline prices can be easily compared on the internet, but an airline often has to buy its production factors from inflexible markets.

High-class service, such as punc- The operating environment has tuality and accepting responsibility become unsustainable for many air- Faraway is a in exceptional circumstances, has its lines. When their own resources are cost. As a network airline, we maintain exhausted, they go bankrupt or become long journey many processes to ensure the journey pawns in the sector shakeout. Dozens of goes smoothly. mergers and acquisitions have already 000 been seen, and the biggest are probably Editorial yet to come. Airlines’ cost structures are being put ­­Finnair’s path will not be easy. We Jukka Hienonen severely to the test right now, as the will hold on to and maintain our Asia President & CEO price of the most important raw ma- strategy so that we can exploit this ­Finnair Plc terial, oil, has both rocketed to an his- growing market in the future, too. toric high and slumped to lowest levels Cooperation with the other airlines Air transport is often at the centre of in recent times. Forecasting has been will extend our route offering. We will events. In the whole massive aviation difficult. Ticket prices, on the other continue working to improve our cost machine, the airline is the element that hand, have slid evenly downwards. structure and increase flexibility. In has an identity in the eyes of the pas- With a couple of clicks of a mouse, this way, we will be able more surely senger. An airline’s service is considered customers are comparing airlines on to improve our operational and service to be personal. When the service goes the internet to find the cheapest tickets, quality, and respond to our stakehold- well, the customer is satisfied. but the airlines more often than not ers’ needs over the longer term. Great expectations are connected have to purchase their services, raw People are travelling more often and with air travel and they are not always materials and labour from inflexible further than before. Faraway is a long fulfilled. The reason may lie with the markets. Many production factors in journey, and at the end of that journey airline, some other operator or simply an airline’s value chain are in the hands many things and situations await the the circumstances. A flight may be late of monopolies, cartels or otherwise traveller. It is not a matter of indif- for many different reasons or the cus- restricted competition. ference with whom one travels. We at tomer may simply consider the service Cost structures have developed Finnair have long experience of com- to be poor. Irrespective of the origi- over the decades and in a totally dif- fortable travelling behind us. We also nal reason, the spotlight falls almost ferent operating environment from have a strong desire totravel with our without exception on the airline. This where we are today. Overhead costs as customers far into the future. sets us a big and complex challenge. well as slowly and weakly flexible sala- Last year ­Finnair found itself in many ries impede the adjustment of costs situations in which both the customers to changes in demand and capacity. and ourselves were put to the test. All Cutting costs is a major task. kinds of exceptional situations arose 000 from strikes, demonstrations, weather conditions and technical hiccups. In Weakening demand worldwide and every case we tried to alleviate the dis- declining revenues in passenger and ruption caused to our customers as far cargo traffic are choking off the cash as it was in our power to do so. flows of all operators. In addition, Our reputation as a reliable airline airlines’ investment programmes are obliges us to do this. To ease our cus- hampered by a tightening of funding tomers’ difficulties, we found alterna- sources. The challenges of the coming tive solutions in situations where from years include the burden of emissions the company’s perspective it would trading and the unpredictability of oil have been easier and cheaper to throw price development. in the towel and wait for matters to sort themselves out. 3

­­Finnair’s

year January May ­­Finnair’s Estonian subsidiary, Aero, flew its In May, ­Finnair received its first new Airbus last flight on 6 January 2008. At the same A340E aircraft. The A340s will be used on time, ­Finnair’s propeller aircraft era came to ­Finnair’s Asian routes. ­Finnair will replace its an end when the ATR-72-201 aircraft that in present Boeing MD-11 long-haul traffic fleet recent years had flown in the Aero livery were with Airbus A340 and A330 wide-bodied air- transferred to new owners. craft by 2010. Page 08

June On 12 June ­Finnair announced the initiation of statutory employer-employee negotiations. In the airline industry’s struggle for survival, 25 million euros of savings were sought in personnel expenses. Another 25 million euros were saved by other means. Page 66

June July ­Finnair began scheduled flights to Seoul and the country has 49 million inhabitants. On 30 July, a retro aircraft, named the Silver in South Korea at the beginning of June. In addition to business travel, the destina- Bird, made its first flight to Copenhagen. To ­Finnair is the only airline flying direct from tion has lots of potential in tourist travel mark ­Finnair’s 85th anniversary, an Airbus South Korea to Northern Europe. Seoul’s from Asia to Europe, and the area is also A319 was painted in the livery of a ­Finnair modern Incheon International Airport is one becoming increasingly popular among Eu- Convair aircraft, which began operating in of Asia’s biggest air transport hubs. South ropean tourists. Page 33 the 1950s. Page 75 Korea is the world’s tenth largest economy 4 Logbook

3 July 2008 24 December 2008 USD 146.08 usd 36.61

July July October The European Parliament decided on 8 July to The price of oil rose in the summer to a The countdown on ­Finnair’s Boeing MD- incorporate air transport into emissions trad- record high and increased fuel costs sig- 11 aircraft has begun. Aircraft unit OH-LGC ing in 2012. In order that emissions trading nificantly. For many airlines, jet fuel costs was withdrawn from service in October. The would not jeopardise the European airlines’ proved to be fatal. Since the oil price peak, seven MD-11 aircraft painted in ­Finnair’s liv- competitive position, the system should be the global economic downturn has been ery will be replaced with two-engine Airbus global. Page 62 clearly visible. Page 11 A330-300 aircraft, of which ­Finnair has or- dered eight. Page 70

October November Will we be flying faster than sound in 2093? of a book: Departure 2093 – Five Visions of ­Finnair celebrated its longevity with an ex- Will aircraft look like flying saucers? Will they Future Flying. Read more at www.depar- hibition of Asian contemporary art Drawn in need fuel and produce emissions? And what ture2093.com. Page 78 the Clouds at the Museum of Contemporary about space? Will we be living, working and Art Kiasma. On 2 November visitors to the vacationing there? To mark its anniversary exhibition received free admission. The exhi- year, ­Finnair decided, instead of dwelling on bition showed works by Asian contemporary the past, to peek into the future in the form artists until 1 February 2009. Page 77

November November November–December On a ­Finnair flight from Bangkok to Hel- On the last day of November, southern Fin- Flights to Bangkok International Airport sinki on 20 November, a baby girl was born land was blanketed in snow and air traffic were cancelled for nearly a week in late No- 11 kilometres above Kazakhstan. The Swed- was faced with a snowstorm the like of which vember/early December after demonstrators ish mother was making a return flight from had not been seen for 47 years. Ploughing occupied the airport. ­Finnair transported its Thailand. As a congratulation gift, the fami- the snow to make way for the aircraft took passengers back to Helsinki via Phuket. ly received from ­Finnair return tickets to time, so traffic was delayed. Page 58 Bangkok. Logbook Finance

Last year the price of oil rose to a record high. At the same time, a historic worldwide economic recession was knocking on the door. The equation of rapidly rising fuel costs and falling demand had disastrous consequences for many airlines and also affected Finnair’s­ result. The storm can be survived, but the necessary adjustments will require unprecedented work and commitment.

Jan/2008 July/2008 Dec/2008

Wild swings in the oil price proved to be expensive for airlines. 6 Logbook

KEY FIGURES 2008

­Finnair GROUP KEY FIGURES

2008 2007 2006

Turnover EUR mill. 2,263 2,181 1,990

Operating profit (adjusted), EBIT * EUR mill. 7 97 11

Operating profit (adjusted), EBIT * % of turnover % 0.3 4.4 0.6

Operating profit, EBIT EUR mill. -52 142 -11

Result before taxes EUR mill. -56 139 -15

Unit revenues on flight operations c/RTK 70.1 72.6 74.0

Unit costs on flight operations c/ATK 43.5 43.5 46.0

Earning per share EUR -0.33 1.04 -0.14

Equity per share EUR 6.04 7.70 6.14

Gross investment EUR mill. 233 326 252

Interest-bearing net debt EUR mill. -90 -222 43

Equity ratio % 38.1 47.1 37.2

Gearing % -11.6 -22.5 7.1

Adjusted gearing % 63.2 35.1 112.8

Return on capital employed (ROCE) % -2.5 14.2 -0.1

Average number of employees 9,595 9,480 9,598

* Excluding capital gains, non recurring items and change in fair value of derivatives.

­Finnair is the Nordic countries’ most re- Finland, ­Finnair has a more than 60 per cent spected airline, due to its strong growth market share. On short domestic routes, strategy, excellent product and high qual- ­Finnair has systematically reduced its ca- ity. In the current decade, ­Finnair has shown pacity and thus improved its profitability. that, although it is not the biggest, it is even so a substantial player in the north- ern skies. Focus on In an economic downturn, it is clear that Europe–Asia ­traffic ­­Finnair’s the whole sector will suffer, but with an effec- tive strategy the airline can survive in sound ­Finnair has focused on its scheduled traffic financial health also from difficult times. between Europe and Asia. A more extensive ­investment route network has been purposefully built since the turn of the millennium by open- story is Market leader in its ing new route destinations and increasing ­domestic market the number of flights. The number of pas- growth sengers on Asian flights has doubled in five ­Finnair has a strong hold on its domestic years and quadrupled over the last decade. market in Finland and neighbouring coun- In recent years, ­Finnair has been the fast- tries. In international traffic departing from est growing European airline in Asian traf- 31 87.5 -15 139 Finance 7 -56.4

continues on the next page •

Turnover EBIT* Result before taxes 25.2 70.1 11.2 97 6.6 eur mill. eur mill. % oF turnoVer eur mill. 6.1 11.1 -0.1 14.2 1.5 3.7 0.5 4.4 0.3 2,181 2,263 -2.5 1,990 96.6 liike 1,871 70.1 139 1,683 tulos ennen4.4 veroja 88 3.7 25.2 31 11.2 6.6 -15 -56 1.5 1683 1871 1990 2181 0.6 0.3 2263 04 05 06 07 08 04 05 06 07 08 04 05 06 07 08

6.1 11.1 -0.1 14.2 Return on capital employed Unit revenues and costs Adjusted gearing -2.5

% CHange, % Unit revenues, c/RTK % Unit costs, c/ATK 14.2 4 112.8 sijoitetun pääomantuotot 11.1 yksikkötuotot oikaistu 102.5 6.1 -4 66.8 63.2 -0.1 -2.5 -8 35.1 -12

-16 04 05 06 07 08 04 05 06 07 08 04 05 06 07 08

102.5 66.8 112.8 35.1 63.2 fic, and it is increasing its market share. In Asian flight at some European airport. For Helsinki-Vantaa Airport is an efficient Asian traffic, ­Finnair ranks fourth among passengers, it is essential that their transit and convenient transit airport. This year a European airlines. ­­Finnair’s growth strat- connection does not take them on a point- new Asian terminal will be opened there. egy, moreover, has been tested in practice less detour or have them travelling in the From Helsinki, it is just a short trip to – and it works. wrong direction. In this way, the passenger Asia. ­Finnair is the only European airline Asia’s national economies are grow- saves time and the airline fuel, which in turn able to fly to Asia and back within a day, ing faster than the rest of the world. Eco- reduces environmental burden. which enables efficient use of its wide-bod- nomic growth increases air traffic and travel. Helsinki is located on the shortest route ied fleet. ­Finnair is already present in the most impor- between Europe and Asia. When flying via tant Asian markets of China, Japan, India Helsinki, passengers travel in the right di- and Korea. Thailand is important for leisure rection from Europe to most Asian destina- Excellent product travel, and ­Finnair flies both scheduled and tions from the very first metres. When pas- and quality service leisure flights to the country. sengers fly from Asia to Europe, Helsinki is The Asia strategy is based on a compet- the first EU capital encountered, opening up The basis of product superiority are time- itive route offering in Asia and a compre- the whole of Europe. ­­Finnair’s European and tables that serve the customer. ­­Finnair’s hensive network in Europe. Most passengers Asian flight timetables have a wave structure timetables facilitate the shortest travel do not have a direct flight connection avail- that enables aircraft coming from Europe to times between Europe and Asia. Between able to them between Europe and Asia; they find a suitable connection from among the Finland and European destinations, ­Finnair have to change from a feeder flight to an Asian flights offered, and vice versa. applies the “home for the evening” concept, • 8 Logbook

1790 1940 2100 2365 2545 • continued from the preceding page

Revenue tonne kilometers number of passengers Passenger load factor

mill. tnKm mill. passengers DomestiC % international 6 .8 6 2 .0 2 7.0 2,545 .4 6 1 .7 1 6.8 2 .1 2 1 .5 1 5 .9 5 2,365 .3 2 75.2 75.5 75.2 tonníkilometrit 2,100 71.2 72.6 1,791 1,940

04 05 06 07 08 04 05 06 07 08 04 05 06 07 08

Turnover of ­Finnair Group units in 2008

Scheduled Passenger T Suomen Matkatoimisto eur mill. Facilities Management T echnical Services Amadeus Finland A Leisure T urinkomatkat N orthport Catering Cargo raffic raffic Area

Turnover 1,612 199 268 288 212 60 151 50 43 17 12

Turnover figures include intra-Group turnover

• whereby business travellers can make a jour- An important element of ­­Finnair’s qual- ney from Finland to the rest of Europe and ity is high class service on flights. This cul- yet be home for the evening. The same ar- minates in long-haul flights’ business class, rangement is also possible when travelling which has lie-flat seats. The jewel in the di- % to Finland from many European cities. verse cuisine offered by business class is 80 Traffic between Europe and Asia offers ­­Finnair’s award-winning wine cellar, which around 800 route combinations. In its do- clearly distinguishes it from its competitors. mestic market, ­Finnair offers direct con- The high quality entertainment offered also One of the most nections from Finland to around 50 in- extends to economy class. punctual: over 80 ternational and 11 domestic destinations. per cent of ­Finnair Partners’ networks complement ­­Finnair’s flights arrive on flight offering. ­Finnair belongs to the one- Modern and world-alliance, which expands its route of- integrated fleet schedule. fering significantly. ­Finnair is one of the world’s most pun- ­­Finnair’s whole fleet will be one of the most ctual network airlines. Over 80 per cent of modern in the world when the investment ­Finnair flights arrive on schedule. Very of- programme now under way is completed ten delays are due to the congested Euro- within the next year. The long-haul fleet pean airspace. is currently being modernised. The Euro- Finance 9

Traffic information 2004–2008

2008 2007 2006 2005 2004

Flight hours 232,389 228,487 211,813 202,070 196,795

Flight kilometres 1,000 155,300 147,094 133,890 125,410 121,027

Available seat kilometres mill. 29,101 26,878 23,846 23,038 21,907

Revenue passenger kilometres mill. 21,896 20,304 17,923 16,735 15,604

Passenger load factor % 75.2 75.5 75.2 72.6 71.2

Available tonne kilometres mill. 4,485 4,074 3,602 3,400 3,162

Revenue tonne kilometres mill. 2,545 2,365 2,100 1,940 1,791

Overall load factor % 56.7 58.0 58.3 57.0 56.6

Passenger 1,000 8,270 8,653 8,792 8,517 8,149

Cargo and mail 1,000 kg 102,144 98,684 93,807 90,242 86,245

pean fleet is already the c ontinent’s most airline’s costs. ­­Finnair’s new Airbus long- Balance sheet key figures are strong. modern. haul aircraft consume 20 per cent less fuel Gearing is among the lowest among Euro- A modern fleet is a prerequisite for suc- than the Boeing MD-11 aircraft that will be pean airlines. ­Finnair in net terms is debt- cess for an airline. That’s why all airlines who withdrawn from the fleet this year. free. The cash position is also good. A share have the financial health to invest in new The commonality of the fleet is also a issue arranged at the end of 2007 attracted fleet do so. Aircraft manufacturers’ order cost-efficiency factor. Relying on only a few 244 million euros of new capital. These fac- books are full for years ahead. ­Finnair has aircraft types boosts crew utilisation and tors provide a good platform for implement- safeguarded its orders and options for its brings flexibility to capacity management. ing the renewal of the wide-bodied fleet. aircraft needs in the coming years. The technical reliability of aircraft and pleasant cabin areas are important for the Financial health and Cost-efficient customer. The punctuality of ­­Finnair’s air- strong balance sheet craft has improved as the fleet becomes ­­Finnair’s cost structure is competitive com- younger. ­Finnair has invested in cabin fa- ­Finnair is a financially sound airline. The pared with other network airlines. The com- cilities, which is evident particularly in the company has survived the difficulties that air pany has continually sought more cost-ef- growth of business class demand. transport has encountered since the turn of ficient operating practices. The results are Fuel costs constitute the largest item of the millennium by adjusting its operations. apparent as productivity improvement and an airline’s cost structure. A fuel-efficient At the same time, however, it has imple- changed processes. fleet is an important factor in managing an mented a strong Asian growth strategy. Profit improvement programmes are im- • 10 Logbook

­Finnair GROUP FLEET dec 31 2008

Seats Number Owned Leased Average age

Airbus A319 105–123 11 7 4 7.2

Airbus A320 111–159 12 6 6 6.4

Airbus A321 136–196 6 4 2 7.9

Airbus A340 269 5 5 0 3.6

Boeing MD-11 282 6 1 5 14.2

Boeing B757 OH-LBR 227 7 0 7 9.6

Embraer 170 76 10 6 4 2.7

Embraer 190* 100 8 4 4 1.4

Total 65 33 32 6.4

* In 2009 ­Finnair will receive two and in 2010–2011 three Embraer 190 aircraft.

In 2009 ­Finnair will receive five and in 2010 at least three Airbus A330 aircraft.

• plemented particularly in financially difficult Group’s package tour production. Asia. ­­Finnair’s long-haul traffic is expected times, but continuous structural change in Outsourcing has taken place in opera- to double during the next ten years. a changing operating environment as well tions where it was sensible to do so in terms as improving operational efficiency with- of operating environment and competition out abandoning quality are also absolute dynamics. Next 85 years necessities. To mark the 85th anniversary of its founding, Finnair's instead of a history that looked backwards, Focus on Vision 2017 ­Finnair published an account of the future, core business outlining the possible course of ­Finnair and ­Finnair has prepared a new long-term vision air transport up to the end of this century. In up to 2017. In accordance with the vision, the book, a number of international experts ­­Finnair’s core business operations are sched- ­­Finnair’s goal is to be the airline of choice from different fields ponder on the kind of uled and leisure traffic. The ­Finnair Group for the quality and environmentally aware aircraft that will be flying then and the en- structure has been developed in a goal-di- flight passenger in intercontinental traffic of ergy sources they will use. With this work, rected way. In the 1990s and 2000s, func- the northern hemisphere. ­Finnair will imple- ­Finnair participates in a discussion of the fu- tions that were not the airline’s core busi- ment a growth strategy based on increasing ture opportunities for air transport. We can- ness were sold, including, for example, hotel demand in Europe–Asia traffic, and in future not affect the past, but we can influence the and restaurant operations and part of the also in traffic between North America and future. The best course is to set targets. Finance 11 Air transport is a sensitive barometer of the global econo- The worldwide economic downturn my. The rises and falls of the economy make themselves currently under way impacts on the key felt in passenger and cargo demand, initially modestly, but as elements of air transport. Firstly, the the cycle deepens the air transport market reacts twice as strong- degree of economic activity is quickly ly as the rest of the economy. Text Taneli Hassinen reflected in air transport, both in the level of demand and in prices. Secondly, the activity of the financial markets is reflected in the availability and price turbulent times of the capital needed for investments. Thirdly, oil prices also react to shifts in for airlines the global economy.

In cold conditions, de-icing is performed on aircraft. In a cool financial climate flexibility is required. 12 Logbook The financial crisis and its knock-on ­­Finnair’s aircraft fly with high pas- he airline industry is accustomed effects require airlines to adopt quick senger and cargo load factors, which T to trusting in perpetual motion. It solutions, because the forces driving remains the company’s goal even in is assumed that matters will be ­handled the business are powerful and changes difficult market conditions. Passen- automatically. Behind this lies the have a big impact on profitability. ger and cargo price levels declined last cartel economy that continued up to Control can be maintained if produc- year. ­­Finnair’s market share in traffic the 1990s in which the sector invari- tion can be adjusted to demand and between Europe and Asia grew. ably transferred costs to customers for cost structure is sufficiently flexible to payment. allow abrupt financial changes to be or many airlines, the acquisition of During difficult times in years gone rectified quickly. F funding has become an operational by states subsidised airlines. Some still bottleneck. The price of loan funding do so even today. The market economy has risen rapidly and many companies mechanism does not operate in air Difficult times weed out the have neither a sufficient balance sheet transport. Inefficient airlines relying weak companies from those nor cash flow to be creditworthy. on subsidies still remain to make life that have taken long-term Obtaining loans becomes difficult, difficult for the others. care of their affairs. which in turn causes problems for fleet In the freely competitive environ- modernisation. Funding difficulties are ment in which a significant proportion often an accelerating process in which of airlines operate this is no longer pos- he recession quickly makes itself one problem cumulatively gives rise to sible. Airlines have undergone structural T felt within companies. The travel new challenges. The solvency and credit changes to make their operations more budgets of airlines’ corporate custom- worthiness of a company that has fallen efficient. Some airlines have managed ers are tightened, even when no direct into difficulties deteriorate rapidly. to do this better than others. problems are evident in the companies’ If the balance sheet is not continu- It is most difficult for those compa- own business operations. Business ally kept in good shape, when a crisis nies who try to justify their existence travel declines or it moves to cheaper arrives it is too late to start work on in the free market while maintaining price classes. restoring its health. Strong and effec- old structures. They lack the ability to Even if an airline’s volumes do not tive cost adjustment is the only way to react to changing market conditions. decline significantly, revenues can fall revitalise operational cash flow. Significant challenges exist where, for sharply as the relative proportion of example, airline personnel cannot let lower-priced travel grows. Competition go of the old world. between airlines for corporate custom- ers increases, which lowers prices. As matters stand, 2007 may be the only profit-making year for air transport this decade. The world’s airlines combined operating result

operating margin, % net result, $bn ifficult times weed out the weak companies from those that have 2008 e 2009 e 2000 2004 2006 2005 2002 2003 2007 2001 1998 1999 D taken long-term care of their affairs. Succeeding in one area alone is not enough. Difficult times require a good performance in all operational areas. The product must be competitive. 8.2 8.5 The production equipment must be modern and efficient. Finances must 5.6 3.7 be on a sustainable basis in terms of 5.5 4.7 3.5 both cash flow and balance sheet. The 4.2 3 1.5 1.6 most probable survivors are not neces- 0.5 0 sarily the biggest, but those that adapt -2 -1 -0.5 -4 -2.5 fastest and smartest. -4.1 -5.6 -5.2 -7.5 -11.3 -13

Source: International Air Transport Association IATA An airline runs a value chain from which often only crumbs off the table remain for itself.

An airline runs a value chain from Viability is not a one-off achieve- which often only crumbs off the table ment, but a dynamic mindset. Every remain for itself. Aircraft and compo- component of the machine must be Playing nent manufacturers, leasing compa- continually examined and the unre- nies, airports, oil companies, booking sponsive parts lubricated to get them systems and insurance companies make moving smoothly. Courage must also Monopoly a good profit margin while airlines be found to remove outdated struc- hang by a thread, barely surviving on tures. ­Finnair, for sure, has had its share in the sky both sides of zero. of these, but fortunately a fair heap of 000 them have already been disposed of. Column And the work continues. Taneli Hassinen Twenty years ago, European air trans- 000 Xxxxxxx port still lived in a cartel economy. This Taneli Hassinen planned economy fathered airlines with An airline’s success story cannot only Vice President heavy cost structures. In years gone by, be a succession of proud steps in avia- F i na nci a l Commu n icat ions rising costs were passed on into flight tion history. A magnificent past and an and Investor Relations tickets and only the rich could afford assumed glittering future have become to fly. Cycles were like trips round a trap for many a national flag carrier. Airlines are traditionally run as if the Monopoly board – despite being Those who have a flexible structure, an decided by dice on a Monopoly board. subject to chance, somehow rather open-minded strategy and the expertise Situations arise by chance. Surprises predictable. to implement it will snatch the tokens can arise at any time, like Chance and Free competition gave rise to various from the board in the coming redivi- Community Chest cards. Some mes- business models, of which most were sion of the skies. sages are positive; others, however, more enthusiasm and idealism than 000 empty the cash box in a flash. The cost expertise and understanding. Some of of landing on stations rises, the more the new-model airlines, even so, have The series on the second side of Monop- monopolistic their ownership. The tax done well. They have challenged the oly board commonly generate the best spaces resemble the extra developing old national network airlines, among cash flow; production costs are reason- country or environmental tax plans whom some have succeeded better than able and the product of uniform quality. that are now and then aimed at the others in adapting established struc- Many a player has gone bankrupt with sector. tures into a genuine business model. Mayfair in their grasp; building costs 000 Companies that have not managed to are high and premium customers hard change their ways are now in bad shape to find. More often than not, airlines have to or on artificial respiration. buy their services, raw materials and The current economic crisis will labour from inflexible markets, because separate the weak airlines like chaff many airlines’ production factors are in the wind and only the healthiest in the hands of monopolies, cartels or will remain to share what’s left of the otherwise restricted competition. Cus- market. Some of the companies will be tomers, on the other hand, can easily pruned from the market through bank- compare airlines on the internet with a ruptcies, others bundled into larger couple of clicks of a mouse to find the entities. Size, however, is no guarantee cheapest flight ticket. of long life expectancy – adaptability is what’s needed. 14 Logbook On the shore of the Gulf of Mumbai stands a massive triumphal arch, the Gateway of India, which symbolises India’s links with the world. Also for ­Finnair, Indian traffic, which opened around two years ago, means many opportunities in both the passenger and cargo markets. Text Taneli Hassinen

Asian flights also carry cargo

On ­­Finnair’s scheduled flights, India Cargo is carried in the hold of innair has cargo sales offices in is only six hours away from Helsinki. ­­Finnair’s passenger aircraft together ­F Delhi and Mumbai. Delhi, the From a beginning of three flights per with baggage. Long-haul traffic air- country’s capital city, and the area sur- week to Delhi, ­­Finnair’s Indian traffic craft normally carry around 20 tonnes rounding it constitute a large market has grown to ten flights per week, six of cargo, sometimes even more. In addi- area for both cargo and passenger per week to Delhi and four to Mumbai. tion, ­Finnair Cargo has leased cargo traffic. The Mumbai area is India’s In the summer season, the company capacity from a Cargolux cargo aircraft financial centre, so it is also an impor- flies twice a day between Finland and from Hong Kong to Helsinki. tant hub for air transport on this sub- India. Air cargo demand is strongly linked continent of one billion inhabitants. Alongside China, India is Asia’s to trends in gross domestic product. Both of ­­Finnair’s destinations in India fastest growing economy. Even though In consequence of the financial crisis, also serve as busy centres of cargo figures for the national economy have companies have cut back their invest- traffic. recently fallen back from their peak, ments considerably. Changes in inter- Export industries are also located in India’s production machine is still national trade are rapidly reflected in other regions of India, such as Banga- going strong. Fuelled by economic cargo capacity demand. lore and Chennai, where many Nordic growth, travel and cargo demand are “This sector lives on investments. countries have established production also increasing. Both are important Cargo traffic is one of the first to react plants. business areas for ­Finnair. to an economic downturn. The booking “From these and many other areas, Indians living in India and in Europe horizon is very short. Even in normal we feed cargo via Delhi and Mumbai have discovered ­­Finnair’s connections times, bookings are only received a little to our Helsinki flights. We are the only between India and Europe via Hel- over a week before the aircraft depar- Nordic airline with an excellent product sinki. For example, ­­Finnair’s market ture. We have to sense the market, the to offer. That’s because volumes and share in traffic between Manchester direction in which customers’ sectors price level have been maintained here and India tripled in 18 months. France are developing, in order to know what better than in many other markets,” and Norway are also important market kind of demand to expect,” explains says Marcus Kavanne, ­­Finnair Cargo’s areas for Indian routes. ­Finnair Cargo’s VP Global Sales Timo Area Director, India. Riihimäki. ­­Finnair’s Indian aircraft have been Until autumn 2008, cargo demand flying with good cargo load factors. Cargo is an essential part from all Asian markets to Europe was Nearly 90 per cent of the available of ­­Finnair’s Asian traffic strong. From Europe to Asia, demand capacity has been sold. In the Indian growth strategy. has been more flat. Of ­­Finnair’s Asian market, ­Finnair Cargo’s clientele con- markets, India has been the positive sists of more than one hundred for- exception. There has been sufficient warding firms and their thousands of argo revenue represents a good demand in both directions. customer companies. C quarter of the total revenue of “The Indian cargo market is still “Forwarding firms represent a very ­­Finnair’s Asian traffic, and cargo is an buoyant. We have enjoyed strong growth important partner network for us. We essential element of ­­Finnair’s growth there owing to increased capacity. We have recently taken cargo sales into our strategy for Asian traffic. For ­­Finnair’s have already established our place own hands, which means that we have cargo operations, Asian traffic is vital, in a market specialised in the Nordic better contact with markets compared because it generates 80 per cent of its countries and Eastern Europe,” adds with contacting customers via a sales revenue. In 2008 ­Finnair Cargo Oy’s Riihimäki. agent,” explains Kavanne. result was one of the ­Finnair Group’s ­strongest. Finance 15

From the left, Mika Pernu, Timo Toiviainen and Sami- Pekka Koskinen of Cargo.

n addition to an extensive route “We have adjusted our terminal Comment I network, ­Finnair also has an efficient operations according to cargo volumes. air cargo terminal at Helsinki-Vantaa, Due to the sharp economic downturn, Air cargo traffic lives which is maintained by ­Finnair Cargo we have reduced and laid off person- on investment and Terminal Operations Oy. All the cargo nel,” says ­­Finnair’s SVP Cargo Antero on the consumer that arrives and departs on ­Finnair Lahtinen. durables market. We flights, as well as transit cargo, passes ­Finnair still plans to expand its cargo breathe at the same through the terminal. Other airlines terminal operations at Helsinki-Vantaa rate as our customer also use ­­Finnair’s cargo terminal ser- sometime in the future. companies’ business, production and vices. “Cargo traffic is a growth sector in stock situation. ­­Finnair’s cargo figures The worldwide decline in cargo the long term. We want to add flexibility started to decline sharply in autumn traffic began in spring 2008. ­­Finnair’s to our structures, so that we can partici- 2008. In time the recovery too will be cargo volume only began to fall in the pate in exploiting improved economic fast. Our own production capacity and autumn. In terminal operations, the conditions and subsequent rising cargo costs must respond quickly to market contraction of cargo volumes, has been demand in future. Our sales organisa- changes. evident, however. tion has a strong presence in markets that are important to us. Terminal Antero Lahtinen capacity, furthermore, must be quickly Senior Vice President expandable to correspond with new Cargo volume growth,” says Lahtinen in con- clusion. No airline is immune to the turbulence of the global economy. ­Finnair has worked carefully for years now to safeguard its financial health, so its possibilities for surviving in good shape are better than for many others. Finance 17 Air transport is in an historic upheaval. Many companies’ cash flows and balance sheets are in a bad shape.N ow, more than ever, a survival strategy is called for. ­­Finnair’s growth strategy and sound finances will see the company through this difficult downturn. Text Taneli Hassinen

Surviving the maelstrom

fter 2007, one of the best years Measures were taken in aircraft ­Finnair has a flexible fleet structure. A in air transport history, the sup- acquisitions, personnel expenses and The lease agreements of the Boeing 757 porting pillars of the industry began to in capacity management. In the period aircraft used in leisure traffic expire crumble as 2008 progressed. For many 2001–2008 ­Finnair has trimmed its cost next year. The company has the oppor- airlines, the path ended in a bankruptcy structure by more than 400 million tunity to continue the agreements. On or merger. Some of the companies are euros. These programmes limited the other hand, they could also be left operating without a clear strategy by losses, and the upheaval in the industry unrenewed, if the market situation which to survive into the future. was also utilised, for example by acquir- calls for capacity reductions or if the The financial market crisis has ing aircraft at favourable prices. company decides to optimise its range affected air transport in many ways. Last year ­Finnair implemented a 50 of aircraft types. The more powerfully and quickly the million euro programme to improve problems of banks have been reflected profitability. Half of the improvement in the real economy, the more severe was found in various processes and Within a year, ­­Finnair’s has been the impact on companies’ half in personnel expenses. Costs were fleet will be the newest travel budgets and ultimately also on reduced by means of lay-offs, holiday among network airlines. the behaviour of individual consum- pay cuts and redundancies. The profit ers. impact will be evident in its entirety No airline is immune to the turbu- this year. ccess to funding is vitally impor- lence of the global economy and each In recent years, ­Finnair has reshaped A tant for a modernising, growing has to accept the knocks and blows its structures and operating practices airline. It is like oxygen. To many com- resulting from the financial downturn. by increasing flexibility. Although the panies, the funding taps have been The companies that will survive the company’s long-term strategy remains closed, which for many has led to crisis with least damage will be those unaltered, changes in the market situ- operational decline and closure. that have taken long-term care of their ation require the company to react The global economic downturn is financial health and have an effective quickly when the first signs of the need expected to continue for a year or two. growth strategy. for change appear. During this time ­Finnair will renew ­­Finnair’s strategy is working, and the remainder of its long-haul fleet. geography supports the company’s The investment in aircraft will amount permanent competitive asset, namely The productivity of to over 700 million euros. ­Finnair has flying the fastest route fromE urope via ­­Finnair’s personnel has secured the funding for this substantial Helsinki to Asia and back again. The improved more than investment programme at reasonable challenge is to survive the disruptions 80 per cent since 2000. cost given the current situation in the to air transport demand caused by the financial markets. recession. Bank and pension loans are also new, standardised fleet brings available in addition to the capital t has been of great help that ­Finnair A competitiveness. ­Finnair has mod- acquired through the share issue imple- I has been working carefully for years ernised its European route aircraft and mented at the end of 2007. Operational now to maintain its financial health. it has the continent’s most modern leasing, moreover, is a practical option ­Finnair has responded to serious dis- fleet. The modernisation of the long- for aircraft financing. At the same time, ruptions to the airline industry, such haul fleet is now under way, and this it also enables the company to manage as the September 11th terrorist attacks, will be completed within a year. Then the risk connected with aircraft resale the SARS epidemic and the war in Iraq, ­­Finnair’s aircraft will be the newest of values. by adjusting its operations and finances. all the network airlines. Since the turn of the millennium, the A modern fleet consumes less fuel productivity of personnel has improved than older aircraft. Harmonising air- by more than 80 per cent. craft types brings cost-efficiencies in the use of fleet and crew. 18 Logbook Passengers on ­­Finnair’s Asian routes are mainly from other places than Finland. How do people in different parts of Asia and around Europe decide to choose a Finnish airline, smaller than its competitors, which travels via Hel- sinki? Direct routes and short travel times alone are not enough; the airline must also be presented to the customer in the right way. ­­Finnair’s sales units around the world are focused precisely on this, operating in the customers’ home markets. Text Maria Mroue

Minding the customer around the world

Javier Roig is ­­Finnair’s Client Manager in Spain.

n Finland the market for an airline I is limited. ­Finnair, too, must seek its growth from elsewhere, but com- petition in the international arena is intense and there is an enormous number of players aiming to catch the customers’ attention. In the international airline world, not only a competitive cost level is needed to survive but also, of course, a good product. Customers want to be in the right place at the right time – as quickly and with as little bother as possible. For this battle, ­Finnair has deter- minedly built its route network by exploiting Helsinki’s ideal location on the shortest route between Europe and Asia. Customers are offered a fast journey: when travelling from Europe to Asia, they are always moving in the ­Finnair has its own sales unit in over “The most popular destinations are right direction when they travel via Hel- 20 countries. Over 150 ­Finnair em- Shanghai, Delhi, Mumbai and Japan,” sinki. Helsinki-Vantaa, moreover, is an ployees work abroad. In addition, says Client Manager Javier Roig. efficient transit airport. ­Finnair is represented by various sales Around one third of sales comes For ­Finnair, Helsinki’s location in agents and travel agencies throughout from companies and a quarter from European terms close to Asia enables the world. ethnic passengers on home visits. efficient use of its long-haul fleet, Matti Perä-Rouhu, manager of a because a return trip to Asia can be seven-strong sales team, is responsi- made in less than a day. ble for the busy Spanish sales unit. A good product, however, must also SPAIN Through its clientele, the sales staff be good in the customer’s mind, before have become more familiar with Asian the decision to purchase is made. The Population: 40.5 million customs than Spanish culture. product must not only be competitive ­­Finnair’s route destinations: “With the Chinese it is important to but well known. The airline, therefore, Ba rcelona a nd M a dr id form a business relationship akin to a must be seen and heard at least as much friendship, while Indians are very open as its competitors – and it must sell to Mainly Asians working in Spain or with respect to private life,” says Roig customers in a suitable way, whether they Portugal board ­­Finnair’s flights from of his experiences. be Japanese, Australian or Norwegian. Barcelona and Madrid. Finance 19 ­­Finnair’s Spanish offices are located Most of the Norwegian customers are in Barcelona, in the city centre, and in small and medium-sized companies. Madrid, in the financial district. According to Kenneth Gillberg, Sales Local exceptional circumstances that Director of ­­Finnair’s Norwegian sales disrupt flight traffic, such as strikes of unit, there are many such companies airport personnel or the demonstration in Norway. at Bangkok Airport in November, can “We focus principally on corpo- create pressure and turmoil in ­­Finnair’s rate customers, to whom we offer the foreign sales units. In Spain they recall ­Finnair Corporate Programme. For the the strike of ground handling person- companies, the advantage is that they nel at Barcelona Airport in the summer receive reduced prices to all ­Finnair of 2007. route destinations immediately after “A full plane from Helsinki was they join,” says Gillberg. arriving at Barcelona, and the airport From Norway, most journeys are In Australia, the ­Finnair was in complete confusion. The plane made to Bangkok, with Delhi and ­sales unit is headed by landed at Valencia, around 400 kilome- Beijing following closely behind. Helen Blake. tres away from Barcelona, and we had “A very important new destination to cancel the Barcelona-Helsinki flight,” for companies is Seoul. The flights that explains Roig. begin in spring 2009 between Helsinki The ­Finnair employees in Spain and Bergen, on the other hand, will worked 20-hour days as they arranged strengthen our position as the most bus transfers and hotel accommoda- straightforward eastward connection tion for passengers. between Europe and Asia.” “Fortunately additional flights were Gillberg has worked in the five- sent to us from Helsinki and we finally strong Norway sales unit for a year managed to get the passengers to their and a half. original destinations,” says Roig. “The Norwegians are very open and For his superb service attitude, Roig friendly, so they are easy to get to know. received ­­Finnair’s Service Star award. Finns and Norwegians are connected by closeness to nature and honesty.” A significant challenge for ­Finnair throughout the world is to explain that Norway the globe is round and that, contrary to what the familiar Mercator map shows, Population: 4.6 million the shortest route from Europe to Asia ­­Finnair’s rou te destinations: is via Helsinki. Oslo and Bergen “It is precisely because of this that To Australian customers, ­­Finnair’s our product is so good. All we need to membership of the oneworld alliance do is spread the word,” explains Gill- means a lot, because most of them berg. belong to the frequent-flyer programme of Qantas, the Australian member of the same alliance. For Blake, flexibility has been the key Australia to success. If the connection desired by a customer from Asia to Helsinki Population: 21 million or vice versa is full on the day in ques- ­Finnair has no route destinations of its own in tion, Blake simply finds a replacement Australia; flights are sold to Europe via ­­Finnair’s Asian destinations. for it with another airline. “A long-haul flight in one direction is better for ­Finnair than losing the Customers fly to Europe via ­­Finnair’s customer altogether to another airline,” ten Asian gateways. says Blake. “Our location means that we can In addition to Blake, ­­Finnair’s Austral- use all of ­­Finnair’s Asian connections. ian team consists of three employees. Good sales assets for us are ­­Finnair’s Kenneth Gillberg is Sales Director of ­­Finnair’s extensive European network as well Norway sales unit. as the fast and efficient connections in Helsinki,” explains Helen Blake, manager of ­­Finnair’s Australian sales unit. 20 Logbook “Our sales speciality is the combi- Hänninen has been responsible for nation class. In addition to business leading the UK sales unit since July and economy class tickets, we sell a 2007. ­Finnair has two sales offices in type of ticket that enables passengers the UK. The London office has seven to fly between Australia and Asia, and employees, while its sister office in within Europe, in economy class, and Manchester has a staff of two. the long-haul leg from Asia to Helsinki “The Brits are well known for more comfortably in business class,” their politeness and good manners. In says Blake. addition to these, it is good to master the unique fundamentals of British humour as well as a little of the coun- try’s history in order to become part of United Kingdom the community,” says Hänninen. ­­Finnair’s very own double-decker Population: 60.9 million bus, which started operating in Decem- ­­Finnair’s rou te destinations: ber 2008, reflects the company’s suc- London and Manchester cessful attempt to integrate into Lon- don’s local culture and streetscape. In London one can see the whole world. The mainstay of the UK sales unit According to Tomi Hänninen, Sales has traditionally been the London- Director of the UK sales unit, it is the Helsinki route. In Japan, the ­Finnair sales world’s most cosmopolitan city. “Growth, however, comes purely unit Sales Director “The world’s largest Chinese com- from Asian traffic. In addition to travel is Eero Tammila. munity outside China is in London, so agencies specialised in corporate and cultural differences must also be taken business travel, Asian travel agencies into account in sales and marketing,” represent a significant sales channel, For the Japanese, Europe and Scandi- explains Hänninen. because Manchester’s Chinese com- navia are the finest exotic destinations. munity is the world’s second largest The Japanese like to visit the Nordic – immediately after London’s,” says countries in summer. In spring and in Hänninen. autumn, on the other hand, they are ­­Finnair’s Asia strategy is an asset, attracted to the more southern Euro- particularly in Manchester: pean countries, while in the winter “We have the best connections to they are captivated by Lapland and the Asia, and the fact that we fly via Hel- Northern Lights. sinki is a big plus. Helsinki-Vantaa is an “Typically, the Japanese want a uncongested transit airport, which has week or ten-day tour of Europe,” says the lowest connection times anywhere,” Tammila in summary. says Hänninen. Alongside leisure travel, the Japanese sales unit is focusing more strongly on business travel. “We can now invest more in busi- Japan ness travel due to our increased flight frequencies. I believe that in 2010 we’ll Population: 127.3 million be flying to Tokyo and Osaka daily and ­­Finnair’s route destinations: to Nagoya five times per week.” Tokyo, Osaka and Nagoya ­Finnair currently flies to Osaka daily and to Tokyo and Nagoya four times In Japan, ­Finnair has a service point per week. in each of its route destinations, i.e. Tammila’s interest in Asia has Tomi Hänninen is Sales Tokyo, Osaka and Nagoya. A total of brought him much experience: he has Director of ­­Finnair’s UK 26 employees, led by Sales Director of spent the last nine years in Japan, and and Ireland sales unit. the Japanese sales unit, Eero Tammila, before that he was in Singapore for nine work in the city-centre sales offices. and Bangkok for five years. “The Japanese are honest and hard- Tammila considers that the next working. I value their loyalty as custom- trend in Japanese travel will be Russia ers. In business matters with the Japa- and the Baltic countries. nese, it’s worth socialising and taking “Interest in travelling to Russia and time, because the Western aggressive Eastern Europe already appears to be business style does not appeal to them increasing among the Japanese,” says at all,” explains Tammila. Tammila. Finance 21 ­­Finnair’s local visibility in different parts of the world is very person-oriented. In each country, only a few people work in the sales units, and much depends on them. That’s why those with special skills are chosen for this select group.

Mikko Rautio – a Finnish-Chinese talent

Chinese sales are the responsibility of Mikko Rautio, who recently was awarded the ti- tle of China’s Most Influential Foreign Air- line Manager at the annual Foreign Airlines Awards Gala. Rautio looks like a Finn, but this son of a Chinese psychology professor father and a Finnish translator mother is a thoroughly Chinese man within. He was born in Hel- sinki but moved with his family to China as a three-year-old. He lived in China until, in the early 70s, he received his call-up papers for the Finnish army. The state paid for a train journey but not a flight. The journey lasted a week. “I only returned to Finland as a 21-year- old, but I settled in quickly and, having at- tended Chinese schools, I adapted to army discipline quite easily.” “The time of my youth, in the China of the Cultural Revolution, was in many ways difficult for my family. My mother had to go back to Finland and my father spent a number of years in re-education prison and was sent to the countryside. As psychology was a forbidden science, he taught French instead.” Mikko joined ­Finnair in 1975. The back- not, full and there is quite an international locals, because most of the Chinese don’t ground to this was the just-signed aviation mix of passengers.” speak any foreign language. It’s even more agreement, which in principle would have al- important, however, to understand the local lowed the start-up of flights between Hel- In terms of his expertise, Mikko is unique. His culture and mindset: respecting customers in sinki and Beijing. value has been recognised by other airlines, the right way is important; you can’t be too “Due to the world situation, the route too, because they elected him chairman of proud, but also not too humble.” was not opened until 1988, I waited more the association of the 44 international air- Rautio likes both China and Finland. Bei- than 12 years before I became ­­Finnair’s lines that operate in Beijing. jing he enjoys particularly for its challenging representative in Beijing. During that time nature and metropolitan development. I worked in Helsinki in cargo, check-in and “I visit Finland around ten times per year, loading. Back then, time really seemed to Proficiency in Chinese and what I value most there are the nature drag, but later I realised that all these years is a prerequisite for and the tranquillity.” were of great benefit. I received a thorough communicating with locals. In China, competition in air transport is training in airline work.” intense: during the last seven years, seven In the beginning, the passengers on the airlines have fallen by the wayside. Chinese route were mainly Finns and load ”We voice our opinions on matters such “For us, Helsinki’s location on the short- factors were around 40 per cent. as official procedures, ticket sales, automa- est route is a permanent sales asset, as “The number of Finnish passengers has tion and safety,” says Mikko. around 80 per cent of our customers go via remained fairly stable during the whole life Rautio’s language skills and cultural Helsinki to elsewhere in Europe. I believe of the service. The Chinese started flying in knowledge have been significant assets in that ­Finnair will succeed in Chinese traffic 1992 and ’93 – initially official delegations his career. in the future, too.” and then, a few years later, tourists as well. “Proficiency in the Chinese language is Nowadays the aircraft are, more often than a requirement when communicating with 22 Logbook In international passenger surveys, Helsinki-Vantaa Airport has been ranked among the best in Europe for a dec- ade. The number of passengers travelling through the airport has risen significantly since the turn of the millen- nium as ­Finnair increases its Asian traffic.T o ensure efficient movement of passengers and smooth transit connections, more space and new services are needed at the airport. Text Maria Mroue

The most direct and shortest route inavia and ­Finnair speak of the Via Via between Europe and Asia runs through F Helsinki service concept. Helsinki-Vantaa, so the airport is a “Via Helsinki not only means Helsinki natural location as a growing transit the shortest possible route, but also station. smooth and uncongested transit con- When ­Finnair started to focus on Asian Passengers, however, will not choose nections, new kinds of airport serv- traffic in 2001, passenger numbers the shortest route if they have to pass ices and making travelling a pleasant totalled 280,000. In 2008, 1.3 million through a congested and disagreeable experience,” says ­­Finnair’s VP Cus- people flew on­­Finnair’s flights between airport, where the onward connections tomer Concepts and Marketing Paavo Europe and Asia. Overall, more than are uncertain and flights are often late. Virkkunen. 13 million passengers per year pass For the time spent by passengers to be Passenger surveys, in which Hel- through Helsinki-Vantaa. The inter- truly the shortest possible and for travel sinki-Vantaa is ranked among the best national terminal is currently being to be a pleasant experience, changing in Europe, demonstrate that efficient extended for the growing passenger aircraft at Helsinki-Vantaa must be as transit connections and airport attrac- streams, and the extension will open trouble-free as possible. tiveness are important. in autumn 2009. Finance 23 In terms of new services, ­Finnair has presented a Spa & Wellness centre, which will open in autumn 2009 in connection with the terminal exten- sion. “The Spa & Wellness centre will serve precisely those passengers who are changing from one ­Finnair flight to another at Helsinki-Vantaa. We want to offer this continually growing customer group unique and exciting services,” Helsinki-Vantaa Airport is Northport ranked among Europe’s best says Virkkunen. in passenger surveys. The Spa & Wellness centre will The ­Finnair subsidiary Northport is respon- offer quality services. The spa will sible for ground handling at Helsinki-Vantaa. have saunas with a view of the runway, In recent years Northport has focused on Hel- various baths and care facilities. sinki-Vantaa Airport, which is essential for ­­Finnair’s new via.Helsinki Lounge ­­Finnair’s Asia strategy. In 2007 ground han- will also be built next to the spa. The dling at domestic airports was outsourced to lounge and spa will cover around 1,580 the travel service group RTG, and Stockholm square metres. They will be open to and Oslo operations were sold to the Men- ­Finnair and oneworld tier customers zies Aviation Group. and also to other customers for a fee. In 2008 Northport launched the vi- sion “Best in the Industry 2010”. ­­Finnair’s he growing passenger streams transformation into a network airline also also mean growth in the amount presents many new challenges to ground T Via Helsinki means, in addition to handling operations. Achieving punctuality of baggage. The increasing number the shortest route, uncomplicated of flights and the diversification of targets requires more work and more effi- and convenient connections. ­­Finnair’s network are presenting new cient operations. logistical challenges for baggage han- “It is challenging to match the number dling. Bags must be moved quickly of employees with the amount of work, be- between aircraft, so that flight connec- cause ground handling activity is not in the tions go smoothly and flights keep to least distributed evenly throughout the day; their timetables. there are a number of peak times when most The cost estimate for Finavia’s inter- of the flights arrive and depart. The rest of national terminal extension project is the day can be very quiet,” says Northport’s 143 million euros. Over half of the Managing Director Jukka Hämäläinen. investment will be used for the con- The rush hours arise from the scheduling struction of a new baggage centre. of flights in traffic waves, which is important The baggage handling system to be for passengers, because then they avoid long acquired for the centre is based on the waiting times at the airport. The baggage handling system will be technology used at the largest inter- moved underground. This will ensure national airports. Additional space of uncongested passenger areas. around 20,000 square meters will be obtained for handling and sorting. Comment “Due to the additional space and ­­Finnair’s Asian new technology, the airport will be able traffic has grown in to handle over four million bags per parallel with the year more than the present facilities,” building of the new says Finavia’s Airport Director Juha- terminal extension. Pekka Pystynen of Helsinki-Vantaa. Temporary arrange- ments have been a big challenge for or the baggage centre, a 280 metre moving passengers and baggage through F long tunnel has been excavated at Helsinki-Vantaa from one flight to a depth of 22 metres below the inter- another. Punctuality and operational national terminal. It will connect the quality have improved, however. The The number of transit passen- international terminal’s present and completion of the extension and the new gers is growing fast, so still more new baggage facilities. The length of baggage system will ease the pressure. is being invested in service. the entire handling system will be over ten kilometres and the system will have Jukka Hämäläinen a maximum handling capacity of 7,000 Managing Director bags per hour. northport oy For service providers, the airlines will bring 13 million potential customers per year.

The airport will be required to The roller coaster itself and its loca- provide good basic services, but the tion would be so impressive and unique flight terminal of the future should also that every child and those young at Roller coaster have a host of luxury and special serv- heart would want to try it out. Add a ices. These might include an interna- skiing tube near by and there would be excitement tional casino, a luxury spa with saunas, more than enough for everyone to do. Moomin and Christmas Worlds, a com- These attractions would also be open, Column prehensive shopping paradise, cultural of course, to people other than flight offerings, perhaps in the form of an art passengers. christer haglund gallery, and conference and exhibition 000 SV P Commu n icat ions facilities. In this way, Chinese who like (with a passion for roller coasters) to gamble, Indians presenting prod- The next extension of Helsinki-Vantaa ucts, Japanese who love spas and the Airport will be completed in 2009. The Finns are a modest nation. We don’t Moomins, as well as Americans focused extension will have a spa at least, and sing our own praises, and in Finland on shopping would be in no doubt hopefully some more of the above- we haven’t invested at all in unique that their international travel should mentioned attractions. Now, however, projects to attract tourists. be done via Helsinki. would be the time to consider the next 000 000 step and to bring into the discussion interested partners to design a new, In globalised competition, however, For service providers, the airlines will more imposing airport of the future unique wonders and phenomena are bring 13 million potential customers and its diverse services. what’s needed. Let’s take tourism as an per year. Thus there should be suffi- Implementing the new vision just example and how people choose their cient customers knocking on the shop depends on us Finns. travel destinations. Some fly toR ome to doors every day of the year. see the Coliseum, some to Paris to gape 000 at the Eiffel Tower, others to London to admire the London Eye Millennium As added spice to this, there should also Wheel. be something unique, something that top 000 will distinguish Helsinki in a crystal- clear way from the rest. Helsinki lacks an international attrac- At the airport we could build a roller tion, namely a specific reason to come coaster, and not just any roller coaster, The most stunning to Helsinki. This is a pity, because trav- but overwhelmingly Europe’s best roller coasters ellers are increasingly passing through roller coaster, with a myriad of twists Helsinki, thanks to ­­Finnair’s successful and wild spirals. The roller coaster 1 OIL PRICE, Brent crude oil in Asia strategy. would be open all year round, would 2008, barrel price at its highest in July (USD 146) 000 operate mostly indoors – in the dark underground chambers illuminated Kingda Ka, Six Flags Great 2 Adventure, Jackson Township, Now, therefore, would be an oppor- by the Northern Lights, competing New Jersey, USA (139 m) tunity for a bold vision, and here is with an overtaking Santa’s sleigh – my proposal. Via Helsinki should be but also partly outdoors, to everyone’s Top Thrill Dragster, Cedar 3 Point, Sandusky, Ohio, USA refined into air travel concept and at surprise. (130 m) the same time Helsinki should become Imagine the astonishment of an Steel Dragon 2000, the most natural and desirable transit Indian boy, when he would surprisingly 4 Nagashima Spa Land, Mie, location when travelling in the north- accelerate in his khaki shirt for a few Japan (97 m) ern hemisphere. seconds into 20 degrees of frost. Millennium Force, Cedar 5 Point, Sandusky, Ohio, USA (94 m) Finance 25 For an airline, starting-up a new long-haul route requires a huge amount of planning, pure hard work and, of course, time. Everything begins from sniffing the winds, painting the horizon and proceeding via diverse nego- tiations and market analyses to the point where the flight is ready for sale. Before the first flight departs on its way, catering and marketing are planned, pilots trained for the new airport, and staff proficient in the destination language and culture recruited for cabin work. Edited by Senja Larsen

A new route arises by painting the horizon

innair has opened a new long- The idea of a new destination is Route strategy goes hand in hand ­F haul destination every year, so it hatched in the Scheduled Traffic with capacity planning. New destina- has ­accumulated lots of experience and Network Planning Unit. tions are opened and timetables modi- expertise on the start-up of new routes. “Our work is long-term vision- fied according to how demand develops. Every destination is individual, however, ing, and it is closely connected with Over the long term, route and network so up to a decade can be devoted to the company’s strategy. We examine strategy also directs the acquisition of negotiations and preparation. markets and passenger streams, from new aircraft. Flights began to the newest desti- which we identify possible routes for “We look up to ten years or more nation, Seoul in South Korea, in June ­Finnair. The most important prerequi- ahead. An important checkpoint is 2008. Due to ­­Finnair’s effective network site is that the route is geographically 18 months before a new destination structure, Seoul can be reached from suitable in terms of Finland’s loca- opens, when we plan the timetable around 60 route destinations. The tion and that the passenger stream is models that will best serve the passen- opening of one new destination there- growing,” explains Vice President Route ger streams and profitability calcula- fore gives rise to around 200 new route Strategy and Traffic Planning Petteri tions,” says ­Kostermaa. combinations, i.e. products. Kostermaa. 26 Logbook ir traffic agreements and -over egotiating agreements is very “We check the emergency proce- A flight permits are negotiated by N long-term work. New route dures for the flight paths to be used in the department responsible for alli- opportunities, according to ­­Finnair’s case of loss of cabin pressure and engine ances and international relations. An vision, have been considered all the failure. We classify and check the des- air traffic agreement is always between way to 2017. Rights are currently being tination airport and alternate airports. two states and is often restricted, for negotiated for additional flights to We also order the necessary informa- example, in terms of the number of China and India. tion about the field for all traffic,” says flights. “Negotiations take lots of time, even Sales Operational Planning Manager “Air traffic agreements are generally years. For us the company’s Vision 2017 Heikki Viitala. made by the Civil Aviation Authority, is a work list,” says Koli. The necessary basic data is created sometimes the Ministry of Transport In negotiations, cultural knowledge for the flight planning system and pos- and Communications. Often ­Finnair and patience are real assets. sible adjustments to flight paths nego- participates in the negotiations,” says “In all countries winning people’s tiated with the authorities. Vice-President Alliances and Interna- trust is always important. The details Technical support for the aircraft tional Relations Kari Koli. of an agreement are usually settled to at foreign destinations is agreed with a large extent before the actual nego- partners six months before the flights tiations. In this work the assistance of start. Every destination is ­­Finnair’s local employees is absolutely “At every long-haul route destina- individual, and up to a irreplaceable,” explains Koli. tion there are nominated engineers who decade can be devoted A year before flights begin, informa- handle ­­Finnair’s aircraft. During stopo- to negotiations and tion about the new route is published, vers they perform a technical inspec- preparation. and six months before opening the tion in which they check the condition flight’s arrival and departure times, of the fuselage, doors, engines, landing i.e. slot, are confirmed at the destina- gear and cabin. They also confirm that Flight routes cross the airspaces tion airport. Slots at the best operat- the engine oil levels and tyre pressures of many states. There is generally no ing times are limited and really sought- are OK and that systems have sufficient need to apply for overflight permits after, so there has to be a number of fluids and pressure,” says Juha Hiissa of separately, because they are defined timetable models. Scheduled Passenger Traffic’s Technical within the framework of the UN’s Services. International Civil Aviation Organisa- n the Flight Operations Group an The engineers check for possible tion (ICAO) Convention. In an eastern I ideal routing is planned for the new faults, make necessary repairs and clear direction, the convention does not flight, one that utilises variations in the the aircraft for the return flight. cover all states, however. For example, upper winds in different seasons of the ­Finnair must always discuss overflight year as effectively as possible. fter timetable planning, the focus issues with Russia, because the air- A of preparations shifts to sales and line’s routes to Asia pass over Finland’s marketing, crew planning, pricing and eastern neighbour. traffic planning. “Crew Planning and ­Finnair Techni- cal Services check that the timetable is operationally feasible,” explains Traffic Planning Manager Mattias Wickholm. The Revenue Management & Pricing Department creates booking classes for the flights and determines prices from everywhere on ­­Finnair’s route network to the destination and vice versa. Price levels and price rules are determined so that they are competitive in the country of sale, and they are published in distri- bution systems worldwide. “Demand forecasts are created for the flights. The forecasts determine for each flight the availability of booking classes and prices. They are made for every flight, day and booking class one year before departure. Forecasts are monitored and continually updated during the entire life cycle of the flight all the way to departure day,” says the Director Revenue of Management & Pricing Lassi Rönkkönen. Finance 27

TOKYO

HELSINKI

ales and marketing preparations ales need the support of visibility, n ­­Finnair’s long-haul routes, deli- S begin long before the flights are S so marketing communications O cious dishes from the cuisines of even in the booking systems. initiates its own campaign when the different countries are served. ­Finnair “We analyse how much of the air- route is announced. The objective is Catering prepares the meals for the craft’s capacity will be sold in the des- visibility in as many places as possible, flights. For the return flights from long- tination country and how much world- whether it be business travel, internet haul destinations, meals are purchased wide. The passenger structure, namely sales, various groups or single travel- from local suppliers. the ratio of business to leisure travel, is lers. Based on the demand forecasts, it Each nationality is very particular an important aspect for us,” says Heidi is decided to which market areas the about the food it likes. Foreign chefs Ahonen, who is responsible for Central messages will be directed. are invited to Finland to train ­Finnair European and Asian sales. Catering’s kitchen staff. It is the entire route network that is on sale, not only individual routes. For ­­Finnair’s message is clear: cheduled Traffic’s Ground Han- example, from all European destina- our biggest advantage in S dling reviews the destination air- tions flights are sold to Asian destina- traffic between Asia and port’s ground services and identifies tions and from there return flights to Europe is the speed and the location’s special characteristics. everywhere in Europe. shortness of the journey. Ground handling includes check-in, In good time before traffic begins, gate and lounge services, as well as ­Finnair opens a sales office in the desti- loading and cargo work. nation country. Local staff are recruited “Through the Asia strategy, the “Agreements with a ground han- and trained. focus of marketing communications dling company are finalised around “Companies are a significant cus- has shifted from Finland to the inter- three months before flights begin. Local tomer group for us. Last year we con- national market,” says Jarkko Kont- staff are familiarised with ­­Finnair’s cluded thousands of new corporate tinen, who is responsible for ­­Finnair’s operating practices. Passenger service agreements. Travel agencies are gener- marketing communications. preparedness is ensured in terms of ally the third party in the agreements. “The message of ­­Finnair’s market- both operations and visibility,” says Among the first tasks when opening ing communications is clear: ­­Finnair’s Jukka Rahko of Scheduled Traffic’s a new destination is to contact those biggest advantage in traffic between Ground Handling. responsible for travel management in Asia and Europe is the speed and “The sole aim is for ground han- companies as well as travel agency and shortness of the journey. Helsinki is a dling services to work smoothly accord- tour operator representatives,” says fast transit airport and ­Finnair offers a ing to ­­Finnair’s quality targets from the Ahonen. modern fleet and good service.” very first flight – for passengers, cargo and the aircraft itself.” 28 Logbook he crews of all of ­­Finnair’s Asian “Group Communications visits the T flights have two local cabin staff destination around six months before members. This is important both for the route opens. We take hundreds of service and safety reasons. The English- pictures and write texts, which are then language proficiency of local passengers used on websites and in press articles,” may be very limited. A European airline says Communications Manager Senja is a desirable employer in many Asian Larsen. countries. But the destination must be seen and Finnish flight personnel are also publicised even more widely. Awareness familiarised with the local culture, is raised throughout the full extent of customs and cuisine of the destination ­­Finnair’s route network. The message is country. also spread by ­­Finnair’s network of PR “We prepare the opening of a route offices located in 30 countries. in cooperation with Catering and those “To stimulate media visibility, we responsible for service product devel- arrange press flights for European opment. The objective is a customer journalists in collaboration with a local service concept which is as effective as tourism promotion organisation. We possible and respects the local culture. also bring journalists from the new des- Arle retires An interesting challenge is presented by tination country to visit Finland and the fact that we are a European airline European locations,” says Larsen. Senior Vice President Henrik Arle, who retired that wishes to serve a multi-cultural at the end of 2008, was known for his special clientele while preserving our Finnish- uch has happened before the sense of humour. Arle, who had a dry wit, en- ness. Customer feedback suggests that M wheels of the first flight touch joyed a 30-year career in ­Finnair. we have succeeded in this,” says Riitta the new destination’s runway. Nothing He joined the company at the beginning of Vuorelma of Cabin Service Depart- is known of the backgrounds of the pas- 1979, at the then head office in Töölö, Helsinki. ment’s long-haul traffic team. sengers along for the ride. But, due to The CEO at that time was Gunnar Korhonen, all of the attention to detail, the journey after whom the company has been led by Antti t ­Finnair Cargo destinations, goes smoothly and comfortably. Potila, Keijo Suila and now Jukka Hienonen. A cargo sales are handled by a sales The most important thing of all, “I have learned something from them all,” agent. When starting a new route, nego- the customer experience, is the focus says Arle about his four bosses. tiations are held with partners that of ­­Finnair’s service planning, which If you ask the others, however, the lessons provide cargo terminal services and attends to the creation, development came more from the other direction, because truck transportation. and effectiveness of service concepts. if there is anyone in Finland who knows about “We take care of cargo transporta- “We offer our customers a highly the airline industry, it is Arle. tion to destinations all over the world. competitive service environment and Arle had a legal education and he joined Connections exist, even if we don’t comfortable travel experience in our ­Finnair as a company lawyer. He later became fly there ourselves. Goods streams, new Airbus A340 long-haul aircraft. We Chief Financial Officer, in 1985. Before his re- however, are accelerated when we have can, among other things, offer movies, tirement, Arle led the Scheduled Passenger our own direct connection,” explains music, magazines and newspapers as Traffic business area, which generates two ­Finnair Cargo’s Japan Manager Pertti well as personal service in local lan- thirds of the Group turnover. Mero from Tokyo. guages,” says Markku Remes, who is No direct successor to Arle has been ap- “The passenger side and Cargo work responsible for passenger experience pointed, rather his work will now be handled by together as closely as possible when development. a dedicated management team, led by Presi- it comes to marketing. Together we Passengers on the opening flight dent & CEO Jukka Hienonen. ensure a good take-off, whether people get to enjoy a celebration meal into the For the profitability problems encountered or packages are involved,” says Mero. bargain. A local chef flies on the first by air transport, Arle considers there to be sev- flight to the destination and a Finnish eral reasons, of which one relates to unrealistic p to this point, each department’s colleague flies back to Helsinki – in the ideas held about flying. U experts have worked on the destination country’s culinary speciali- “The airline industry attracts the kind of opening of the route. Now the whole ties there are sufficient joint topics of companies that haven’t thought their deci- of ­Finnair must know what is going on. interest for the passengers, irrespective sions through properly. That’s how overcapac- The Communications Department tells of culture. ity arises,” says Arle. about the new destination both to per- Refining the overall service package Now Arle is turning his attention elsewhere: sonnel and to external target groups, never ends. Flying is a process of con- to learning Russian, spending time at his sum- particularly potential customers. Pas- stant learning and of finding new mer cabin, and playing with his grand­child. sengers are also informed of the new approaches to improving service. A Arle also intends to spend more time at destination in the inflight magazine chain of a thousand links carries the equestrian events. As a judge approved by the Blue Wings. passengers on their journey. International Federation for Equestrian Sports, Arle will be seen more often judging champi- onships in Finland and around the world. Logbook Leisure

In leisure the emphasis is now on quality. On their vacations, people are increasingly choosing hotels with more stars, and on flights they are ordering extra space and festive meals. In a flight kitchen the size of a football field, it’s possible to take into account not only cultural differences and special wishes, but also what tastes good at an altitude of ten kilometres. Above the clouds, one million bottles of wine are consumed with meals – and the world’s finest champagne.

TOKYO

7,843 km 5,932 km BEIJING HAMBURG 1,162 km 6,340 km

5,229 km

HELSINKI MUMBAI DELHI 7,081 km 7,940 km

HONG KONG SEOUL

The shortest and most direct route between Europe and Asia runs via Helsinki. 30 Logbook Compared with scheduled passenger traffic, leisure travel is less sensitive to the economic cycle: the ups and downs are more gentle. Leisure travel is not static, however. The sector is shaped by contemporary phenomena and trends, which influence how Finns travel on their holidays and what they expect of a vacation.R ecently, the emphasis has increasingly been on quality. Text Eva Lamppu

Holidaymakers favour quality

When the price of oil rose sky-high in “Quality. The clearest trend in the summer and the financial crisis tourism is Finns’ growing emphasis on was knocking on the global economy’s quality. Around 40 per cent of those door, ­­Finnair’s SVP Leisure Traffic and going on a holiday choose a four-star Travel Services Kaisa Vikkula could hotel for their accommodation,” reveals feel slightly more relieved than her col- Vikkula. leagues; leisure traffic is actually less The idea of spoiling oneself has sensitive to economic fluctuations than spread among holidaymakers. Nowa- scheduled traffic. days, price is the most important selec- “The effects of the recession will be tion criterion for only a fifth of­Finnair visible in leisure flights with a delay of customers. For an increasing number, around six months,” says Vikkula in her the priority is more roomy accommo- office at the beginning of November. dation and privacy. This has boosted, The winter timetable, which runs among other things, the popularity of from November to April, is just begin- apartment hotels. On flights, moreo- ning. Advance sales, including the ver, customers want more leg-room and new destinations Fort Lauderdale festive meals, which can be ordered by and Malaysia, went well according to paying extra. Vikkula. The SVP is not promising, Individuality is a strengthening however, a record result like last sea- trend. An indication of this are growing son’s – ­Finnair Leisure Flights’ best sales of flights alone. season for sales in its history: “People are increasingly arranging “Business is slowing down, but by accommodation at the destination on how much is difficult to say at this their own, for example with friends or stage. Despite fluctuations, demand relatives. For us, on the other hand, the has generally remained more or less the selling of individual seats on flights is same from one year to the next.” an excellent way to fill our aircraft,” Finns will simply not give up their explains Vikkula. holidays. According to Vikkula, up to At the same time, communality is Kuala Lumpur in Malaysia with its skyscrapers is a new destina- 75 per cent of Finns travel abroad at also rising. tion in Aurinkomatkat’s winter least once per year. Over a third makes “Many travel not only with their season 2009–2010. at least two trips per year. In Finland family but also with a group of working and Sweden the focus of leisure travel colleagues or friends.” is on winter – people long to escape the cold, and as a result the travel kilo- metres rapidly accumulate. Elsewhere 75 per cent of Finns in Europe the summer is more impor- travel abroad at least tant for airlines and tour operators. once per year. However, for ­Finnair the summer sea- son’s sales also went well: poor weather gave leisure travel a boost. iven Vikkula’s analysis of ever- Besides the sun and warmth, what increasing adventure and inde- At Punta Cana in the G Dominican Republic, the are Finns currently looking for in a pendent travel, it is pertinent to ask beaches are like paradise. holiday? how on earth one can keep up to speed in this business. As the clientele frag- ments, there seem to be as many trends as destinations – or perhaps as many as individual travellers! Leisure 31

Lyhyille reiteille suunniteltu päästötön lentokone, joka nousee kiitotietä pitkin tai suoraan ylöspäin. Aluksessa tarvittava sähkö tuotetaan Due to its fine climate, sen ulkopinnan . ­Thailand is a popular beach holiday destination.

At Krabi in Thailand, the scenery is breathtaking.

The traveller to Japan can stay overnight or have lunch in the shade of the majestic Mount Fuji. 32 Logbook “Customer segments are no longer “The environmental perspective defined on the basis of traditional back- is undeniably important. We invest ground factors, such as age and living in it even though to date consumer location. Nowadays the target groups interest has been relatively low. People are divided, for example, into adventure- are not yet ready to compensate for seeking, open-minded travellers who the emissions caused by flights, nor head for Laos and Cambodia, culture- has Aurinkomatkat’s environmental loving city visitors, or holidaymakers classification in accommodation, for just looking to relax,” says Vikkula. example, been a primary criterion for ­Finnair tests habits by interviewing customers,” says Vikkula. focus groups and analysing trends. “Nevertheless minimising the eco- “The challenge is to reach every logical footprint is on everyone’s ’to do’ potential customer. Services and prod- list, so things will change. An annual ucts must be developed to suit every dose of sunlight is important for Finns, taste,” says Vikkula.” however.”

nd what about environmental A values? How are they evident in leisure travel at the moment?

EASTERN focuses on quality, has particularly strong de- mand for package tours. The trend is acceler- GROWTH AREAS ating as this demographic group expands. Compared with the Finns and people in During the past year, ­­Finnair’s SVP Leisure the other Nordic countries, Russians decide Traffic and Travel Services Kaisa Vikkula has to travel at short notice. become familiar with the travel habits of the “The Finns’ travel culture includes plan- Russians. At the beginning of the year, Au- ning in good time. The same goes for Es- rinkomatkat-Suntours, which in 2007 ex- tonia. In Russia, however, plans are made panded its operations in the Baltic countries significantly later and the decision to travel by purchasing Estonia’s largest travel agency, might be made only a couple of weeks be- Horizon Travel, also established a subsidiary fore departure,” says Vikkula. in Russia. In St. Petersburg, Aurinkomatkat For the tour operator spontaneity is a risk. now operates as a tour operator under the Among the other peculiarities of our eastern name Calypso – World of Travel, and has 60 neighbour that affect business are certain employees. sector rules: in Russia tour operators can fly “Russia has huge potential. Measured only on local aircraft. In addition, the Rus- in volume terms, the eastern market might sian compulsory visa system restricts the grow to be even greater than domestic op- comprehensive offering of destinations and erations,” says Vikkula, pondering future op- services. Currently the only visa-free destina- portunities. tions are Turkey and Egypt, and that’s why Calypso is specialised in tailored leisure they are popular among last-minute deci- and business travel. Package tour volume in sion-makers. Russia has grown to date at an annual rate of “Thailand, too, is becoming a very popu- 15–20 per cent. The upper middle class, which lar choice in Russia.” 33 South Korea’s vibrant capital In the heart of Seoul, a metropolis of ten serves up a deliciously surprising million people where ancient shrines nes- mix of tradition and technology, stylish tle beneath soaring skyscrapers, a sym- fashion and fabulous food. Text Senja bolic stream flows for several kilometres. Larsen For many years the waterway was a vic- tim of rapid ­urbanization, paved over by a congested road. Then, the green winds of change blew through Seoul; in 2005, Soulful a restored ­Cheonggyecheon Stream was ­unveiled. Seoul HELsinki Though not controversy-free – the project cost an estimated 900 billion won seoul (about 660 million euros) – this symbol of + the city’s new soul offers a perfect intro- duction to Seoul and South Korea, which has gone from being one of the world’s four other poorest countries to one of the richest dur- ing the last 50 years. topical travel The stream is a public gallery, with many different works including the Wall of Hope, destinations a massive ceramic tile artwork created by

South Korea has developed in five ­decades from being one of the world’s poorest countries to become one of the richest. 34 Logbook 20,000 Koreans that expresses sentiments home to the residences of Joseon Dynasty bibimpap comes with gochujang (red chili about Korea’s North-South divide. (1392–1910) officials, extended royal families, paste) to spice up the dish. and the yangban aristocratic class. Further along Insadong-gil, the area’s To experience Seoul’s dichotomies, for it is a These days you’ll find narrow winding main street, is a corner marked “Temple city of stark contrasts, head to the Top Cloud alleyways teeming with traditional tea- Dining.” Follow the winding alley until you Grill Cafe, located on Jongno’s 33rd floor. The houses and authentic Korean restaurants see the The Old Tea Shop on your right-hand view, especially at night, gives you a sense and small shops selling handicrafts such as side. Atop a set of steep wooden stairs is a of just how wired the city is, with its endless fans, masks, lacquer ware, pottery, paper cosy teashop where small birds fly free and sea of buzzing neon LED signboards below. goods and antiques. Reportedly, the coun- the choice of teas is extensive. Top Cloud is a must, not only for its spec- try’s largest concentration of antique shops At the end the same alleyway, Sanchon tacular panoramas and design bathrooms is located here. Korean Temple Cooking, raved about by the (step on the washroom floor’s footprints Ssamziegel, which means “pocket” in Ko- New York Times, serves up a healthy meal in to activate the sink’s taps), but also for a rean, is a courtyard complex with a multi- a soothing milieu. Founded by Yun-Sik Kim, peek at how well-heeled locals dine and wile storey building hosting individual boutiques a former Buddhist monk, Sanchon is an ex- away the early evening by listening to jazz selling one-off pieces of clothing and acces- perience not to be missed. at the cafe. sories. Tucked away in Ssamziegel’s base- A vegetarian meal is placed before you, ment is Gogung, which is one of the best served in about 20 small bowls containing Return to ground level by navigating to Korean restaurants in town, where you can seasonal porridge, kimchi (Korea’s national nearby Insadong, one of central Seoul’s sample bibimpap, the Korean version of fast dish of spicy pickled vegetables), kelp, wild best-preserved historic neighbourhood. Insa- food, a mix of rice, noodles, vegetables and mountain roots, soybean stew, small po- dong and the area surrounding it were once meat with an egg on top. Served in a bowl, tatoes glazed with soy sauce, mushrooms,

In the evenings, Seoul is an endless sea of brightly coloured illuminated LED panels. Leisure 35 peppers and other vegetables wrapped in a Koreans are among the world’s biggest Gyeongbokgung; you must join a 90-minute thin vermicelli pancake, rounded out with tea drinkers and typical Korean choices in- tour. Changdeokgung was originally built rice cakes and tea for dessert. It may not clude nokcha (green tea), insamcha (gin- in 1405 as a secondary palace. Yet when be the tastiest meal you’ve ever eaten, seng tea), boricha (barley tea), omijacha Seoul’s principal palace Gyeongbokgung but it will leave you feeling sated. One of (berry tea) and yujacha (citron tea). was in disrepair, Changdeokgung served the principles of temple dining is that food as the main palace for almost 300 years. is medicine; if you eat properly, you don’t To get a better understanding of Korean Its highlight is Biwon, the rear secret gar- need to take medicine. Almost every night history, visit Gyeongbokgung, the Palace den where kings once relaxed, studied and at Sanchon there’s a traditional Korean of Shining Happiness. Originally built by wrote poetry. show with dancing, theatre and drumming King Taejo, founder of the Joseon dynasty, About 20 minutes away stands the “Eif- at eight pm. Gyeongbokgung was the grandest of Seoul fel Tower of Seoul.” The city’s highest view- The South Korean kitchen prides itself palaces until 1592 when it was burnt down point, the N Seoul Tower tops Mt. Namsan. on fresh ingredients from vegetables to sea- during Japanese invasions. It lay in ruins for Here, you’ll get a sense of how vast Seoul food, poultry and meats. Among the most nearly 300 years until rebuilding started in is. The onsite giftshop, like those in many popular dishes is the Korean grill, bulgogi. 1868. The National Folk Museum is on the galleries and museums, has a neat selection Fresh meat such as beef or pork is brought Palace grounds and there’s an excellent on- of design mugs, notebooks, bags and other to the table, which has a grill. You and your site folk museum for children. charms that are decidedly un-touristy. guests grill the meat and then it’s placed in Seoul’s other major palace is Chang- a piece of lettuce, condiments are added to deokgung, the Palace of Illustrious Virtue, Everywhere you look, there’s some kind spice it up, and the whole package is wrap- but you can’t wander around this World He- of a new gadget, whether it’s the mobile ped up and eaten by hand. ritage site independently as you can with phones that neatly fold out into mini-tel-

Seoul is a surprising mixture of traditional and modern city life with its skyscrapers. 36 Logbook evisions that are popular among subway Inside the nearby Baseball Stadium is the end Grand Hyatt Seoul near Itaewon is pop- riders, or the doors that open with a wave Pungmul flea market. ular with visiting American presidents and over a sensor. businesspeople. While the prices for electronics are not On the south side of the Hangang river, you’ll If you make one trip outside of Seoul, the world’s cheapest, there are some deals find fashionista-central: Apkujeong. Known make it to the DMZ (Demilitarized Zone). to be had on domestic favourites such as as the Beverley Hills of Seoul, this is where Fifty-five kilometres north of Seoul, the four- Samsung and LG. Yongsan Electronics Mar- luxury labels all have flagship stores. kilometre wide zone was established on the ket at Yongsan Station offers one of the big- Around the corner is Rodeo Drive, where ceasefire line at the end of the Korean War gest selections of everything electronic at the prices are much more affordable and the in 1953, and divides Korea into North and lower prices than elsewhere in the city. boutiques funkier. Visitors to Seoul are often South. It’s possibly the world’s most heav- referred to Itaewon, where shoes and cloth- ily guarded border. You can only visit the DMZ For a traditional market, try Namdaemun ing in larger sizes are available and tailors can by participating in an organized tour, and you (also known as Southgate market), which is turn out custom-made shirts and suits. must take your passport with you and follow about a ten-minute drive from Seoul Tower. the rules about where photography is per- The huge day and night market dates back Given the size of Seoul, location is important. mitted. Many guides recommend that you to the 15th century and vendors sell every- Upscale Hilton Millennium Seoul offers an avoid wearing casual clothing, as you may thing from furs to fish, fruits, sunglasses, excellent central location at the foothills of be turned away from a tour. furniture and building supplies. the Seoul Tower. The Grand Hilton Seoul is Dongdaemun Market is known for the not as centrally located, but it’s perched on ­Finnair flies to Seoul four to five times a week depending on a season. thousands of small fashion shops that are the top of a hill that offers good services for in four adjacent high-rise shopping malls. the active traveller and the golfer. The high-

Fresh ingredients ranging from vegetables to seafood, chicken and other meat are the basis of Korean cuisine. Leisure 37 Portugal’s mystical mountain-top If fairytales were real, they would be set in a summer refuge for Portuguese royalty. town captivates visitors with its Sintra. The Portuguese hilltop Eden, com- Along with the palatial retreats of the palaces, museums and surreal setting at plete with three palaces and a castle, has royal family, the homes of the aristocracy mainland Europe’s most westerly point. been a source of creative inspiration for art- sprung up in the mountains that are lush Text Senja Larsen ists and travellers alike for centuries. with green forests of eucalyptus trees, fra- Danish author and poet Hans Chris- grant bougainvillea and gardenias. tian Andersen, who is best known for clas- These days the charming small town has

HELsinki sic tales such as “The Ugly Duckling” and a population of slightly more than 20,000 “The Emperor’s New Clothes,” described people. Start by walking or driving to the Sintra as the “most beautiful place in Por- mountain top, where several kilometres tugal,” when he kept house here during the from Sintra’s main square the road winds

lisbon 1860s. up past stone cottages and mansions to Pena Palace (Palacio da Pena). Sintra, a UNESCO World Heritage Site, is A fantastically wild mix of architectural one of the oldest towns in the country. styles and colours such as pink and yellow, When the crusaders captured it in 1147, they Pena Palace is complete with a drawbridge, fought bitterly against the Moors who were towers, battlements and exquisitely fur- firmly entrenched in their hilltop castle, the nished royal chambers. Originally built in Under Sintra’s ruins of which remain today. the 19th century from the ruins of the 16th- For five centuries the village, which is century monastery, it was intended to ful- ­Magical Spell less than 30 kilometres from Lisbon, was fill the romantic fantasies of King Consort

For five centuries Sintra was a summer refuge for Portuguese royalty and aristocracy. 38 Logbook Fernando of Saxe Coburg-Gotha, the Ger- decor that was reportedly inspired by gos- with Portuguese cuisine adapting to Asian, man husband of then-Queen Maria II. siping courtiers. Legend holds that King European and Latin American culinary styles. Nearby, the Moorish Castle built in the Joao I ordered the painting of magpies, the Sintra’s top hotels also have excellent res- 8th or 9th century AD is on two peaks of the chattering bird, as a message to the ladies taurants. Serra de Sintra. The views from the walls and of the court whose whisperings of intrigue towers over Sintra and of the Pena Palace were distressing both him and his English For the fitness-minded traveller, Penha are unforgettable. Queen, Philippa of Lancaster. Longa offers a variety of activities including two golf courses on the estate – the 18-hole Down through the winding cobblestone al- There are numerous cafes and restaurants Atlantic, which has hosted many interna- leyways and on Sintra’s main square, is the dotting the streets of Sintra. Some charge tional tournaments, and the nine-hole Mon- National Palace (Palacio Nacional de Sintra). slightly higher, touristy prices but many, astery course. The health spa combines local Dating back to the 14th century, the Palace especially those that are not on the main treatments with Asian ones. Meditation, T’ai combines Moorish, Gothic, and Manueline square, are less expensive. Cafe de Paris Chi and yoga classes are also available. styles. (Praca da Republica 32) is perhaps the town’s Entering the palace, which is Portugal’s most romantic restaurant and cafe. Finnair flies to Lisbon two to three times a week depending on a season. From Lisbon, Sintra is a best-preserved mediaeval royal palace, is like A little further away from Sintra’s centre, 45-minute train ride from the Estação do Rossio stepping into the pages of a Gothic fairytale. side streets such as Rua das Padarias, Rua station. By car from Lisbon, head west along A1, The palace houses many unique rooms. The Fonte da Pipa and Rua da Ferraria feature which becomes Route 249 on its eastern approach to Sintra. Room of Swans features a panelled ceiling many lively bars and cafes. Sintra’s restau- decorated with paintings of swans, while rants offer a variety of cuisines and wines the Room of Magpies features an intricate to match. There are many types of seafood,

Breathtaking view captivates ­visitors in the most westerly point of mainland Europe. Leisure 39 Heading off inquisitively into Every working day morning a little after 11 am distribution networks in the world. Each day Mumbai’s back streets is the best at Mumbai’s Churchgate Station, an extraor- hot packed lunches or tiffins are prepared way to explore an exhilarating and dinary spectacle takes place. It starts when a by city workers’ wives and collected from interesting city. Text Tim Bird slender white-clad man steps from a subur- their suburban homes by a wallah. ban train, balancing a long tray on his head. There is no better metaphor for the The tray holds a row of steel containers. method that underlies Mumbai’s appar- The man makes his way to Maharshi Karve ent madness. An estimated 175,000 meals Road, plunging into the traffic, occasionally are delivered each day; only one meal goes HELsinki shouting “Lafka, lafka!” (Get a move on!) be- astray in 16 million deliveries every two fore placing his load on the pavement. Sud- months. denly, the station area is full of similar figures weaving their way through the other passen- Such statistics seem all the more incred- mumbai gers, and the pavements of Maharshi Karve ible after a day or two immersed in the daily Road are a carpet of glinting tins bearing col- frenzy of Mumbai’s streetlife. This is the oured codes and numbers. At the wave of an city renowned for its multi-billion-rupee invisible wand, another team appears and Bollywood movie industry, for glitzy Indian loads the containers onto carts and bicycles to chic night clubs. At the other end of the be delivered to the appropriate workplace. glamour spectrum is an enthralling hubbub Mumbai’s street­ You have just witnessed the Mumbai of activity of which the Tiffinwallahs are Tiffinwallahs – also known as Dabbawallahs just one example. life magıc – who make up one of the most efficient Nobody really knows Mumbai’s popu-

Hot packed lunches or tiffins are prepared by city workers’ wives and collected by a wallah – a local delivery boy. 40 Logbook lation; and once you pass the ten mil- North of the Gateway of India, spanning and presence of wealth are similarly preva- lion mark, who’s counting? About half of the western side of the Fort area with its lent, treated with special reverence. these are crammed together in some of the administrative colonial buildings and mu- world’s biggest slums, whose resourceful seums, a cricket match is starting up on the It’s time to head for the cool streets on Mala- occupants are oblivious to the shiny high- Oval Maidan. bar Hill, a headland forming the northern rim rises and hotels at their run-down door- of broad Back Bay. Find the rectangle of water steps. The extremes of wealth are clear, Tucked away in the nearby bazaars sprawl- tucked between the buildings at the western but the backstreets are friendly, bustling ing north to Grant Road, incense drifts from tip: the Banganga Tank, a kind of swimming and full of surprises. the Mumbadevi Mandir temple, devoted to pool and open laundry combined. Head down to the Gateway of India in the goddess from whom Mumbai takes its Take in the late afternoon view of Marine the early morning and you’ll be greeted by name. Drive from the Hanging Gardens and Kamala howls of laughter from a small park. This is When you emerge from the nearby Nehru Park before heading down to Chow- one of Mumbai’s laughter clubs, followers flower markets and bazaars, escape to the patty Beach to enjoy the golden sunset in the of a yoga creed founded by Dr Madan Ka- other side of the central isthmus. Head for midst of a relaxed and friendly beach party. taria on the assumption that a good hoot the rocky bay at Breach Candy and cross the There’s only one way to finish your can relieve spiritual and physical stress. causeway to the Haji Ali Dargan mosque, Mumbai adventure, and that’s with a Bol- A short walk towards the southern tip of built on an islet and isolated at high tide. lywood movie at the art deco Regal or Eros the island from the Gateway of India is the For one more religious experience, walk cinemas. Colaba Causeway with its cafes and hippy jew- up to the Mahalaxmi Mandir, a Hindu temple ellery shops. This is also where you’ll find the overlooking the sea, dedicated to the goddess ­Finnair flies nonstop from Helsinki to Mumbai three times a week. colourful fish market at the Sassoon Docks. of wealth and, in a city where the absence

The frenzied streelife of Mumbai ­quiets down at the sunset. Leisure 41 Japan’s most famous mountain is Seeing Japan’s highest mountain (3,776 me- Paved roads lead to the fifth station, in Fuji-Hakone-Izu National Park, tres or 12,388 feet high) for the first time, it’s which is about 2,000 metres above sea an area known for its hot springs. easy to understand its mystique. In its perfec- level. There are four major routes from the Text Katja Pantzar tion, Mount Fuji, which has been worshipped fifth station (buses run to the fifth station by the Japanese as a sacred place since antiq- starting July 1st): Kawaguchiko, Subashiri, uity, looks gentle and approachable. Gotemba, and Fujinomiya. It’s also one of the most-hiked moun- The Kawaguchiko route is the most pop- tains in the world, owing to the fact that ular, having about a dozen mountain huts HELsinki you don’t need to be in extrodinarily good between the seventh and eighth station. shape to hike it, or portions of it. For those who would like to experience waking up on Mount Fuji, this basic style tokyo Depending on which route you take, and of of ­accommodation comes highly recom- course, your personal level of physical fit- mended. ­However, during peak season the ness, ascent can take between three to eight huts are booked solid, so advance booking hours; descent from two to five hours. is essential. Mount Fuji is officially open from July Mount Fuji has been dormant for 300 1st to August 27th, and there are many ap- years, but it is a volcano. proaches to the top. The mountain is com- prised of ten stations and the distance Ensure that you have good, sturdy walking Majestic between the first and tenth is about 21 kilo- shoes and that you take along water and Mount Fuji metres. snacks. While mountain huts along the way

Fuji is a popular destination for both locals and foreigners wishing to escape the city life. 42 Logbook offer various meals and drinks, some trails (a futon for sleeping on is rolled out at night) offers many services catering to visitors. have few huts. As well, prices increase with and communal baths. Against the backdrop of Mount Fuji, there the altitude. are sightseeing boat cruises with English- Even at the height of summer, it can be Most inns have an onsen, a hot spring, ei- language narration. chilly (below zero degrees Celsius) at the sum- ther indoors or outdoors in the form of a Hakone has several curious museums in- mit so take along warm clothing and gloves. communal bath. The Japanese believe that cluding the Hakone Open-Air Museum, Ja- each spring holds different healing proper- pan’s first open-air art museum. Opened in Hakone forms the centre of the Fuji-Hakone- ties: some prevent arthritis and pain in the 1969, it features more than 100 masterpieces Izu National Park, which is less than 100 kilo- joints, others skin rashes, and so on. by world-renowned masters of modern and metres from Tokyo and easily accessible The rules for bathing are similar to those contemporary art including Rodin, Miro and from Nagoya and other Japanese cities ow- of the Finnish sauna. Guests are expected to Moore. ing to the highly efficient system of Japanese wash before entering the communal same- high-speed trains, called shinkansen. sex bath nude. No trip to the area is complete without a Set in a series of craters formed 400,000 Most ryokans serve breakfast and din- visit to mountainside Owakudani, a volcanic years ago by volcanic eruptions, Hakone is a ner, which are often included in the price of hotspot full of sulphurous hot springs. Ow- popular place for both locals and foreigners the room. Kaiseki, Japanese cuisine featuring akudani is frequented by the Japanese, who wishing to escape the city life, and to embrace seasonal and regional specialities served in believe that eating eggs boiled in the springs the fresh air, hot springs, and healthy food. small, varied dishes, is often served. increases longevity. Numerous ryokans, Japanese-style inns for travelers, dot the area. Ryokans still fea- There are several lakes near Mount Fuji, in- ­Finnair flies nonstop to Nagoya, Osaka and Tokyo. ture the traditional tatami-matted rooms cluding Lake Ashi (ashi means “reed”), which

Fresh air and historic sites set the scene for a healthy and inspiring holiday. Leisure 43 The joie de vivre of the beginning Perhaps it’s an indication of the increased an equivalent adventure in other capitals, of last century returns to the quantities of income in the pockets of sec- too, although prices are edging upwards. If Romanian capital, whose wild night life tions (but by no means all) of its citizenry; you are unfairly loaded with cash, the city is resounds with beauty and excitement. perhaps it’s the increasingly cosmopolitan also well-equipped with casinos to help you Text Tim Bird character of the place; perhaps it’s a natu- lighten your load. ral tendency for the country that gave us There’s a seedier side as well. So beware Dracula, the ultimate creature of the night. if you venture into a place advertising itself Whatever the reason, Bucharest is crammed as a strip club: not only will the drinks prices HELsinki full of late night venues of varying degrees soar for you and your unsolicited, scantily of eastern European chic and kitsch. clad companion, but you may also be under The Bucharest party crowd has a pretty pressure to part with more cash for other Bucharest robust collective stamina too: several places ‘services’. are open 24 hours, while the music thumps away until four, five or even seven in the The nightlife scene is as fluid and fickle as morning in many clubs. anywhere else, so call ahead to the places If you are looking for romantic company, mentioned in the following summary to a night of frantic dance, a big TV to watch a make sure they haven’t relocated or been game, a quiet chat in a darkened corner or totally deserted by the in-crowd. Alterna- a toe-tapping jazz band, Bucharest’s fast- tively, simply set off and take your chances Bucharest expanding nightlife has a venue for you. A by following the music and bright lights. The by night night on the tiles is likely to cost less than music you will hear clearly enough; the bright

A city that doesn’t sleep. In Bucharest an increasing number of places are open round the clock, or at least until five or seven in the morning. 44 Logbook lights may be harder to spot, since many bars self stuck here for the rest of the evening. at weekends. If you just want a straightfor- and clubs are tucked away in basements or There’s a good concentration of bars and ward party, come here on Saturday; if you’re are a little off the beaten track. Thankfully, clubs: Revenge at Str. Selari 9-11 plays mu- looking for something a little more offbeat, taxis are cheap (as long as you make abso- sic for every taste, an open-minded approach turn up on Monday in your mini-skirt (girls lutely sure the driver uses the meter) and that is appreciated by a casual, unpreten- only, that is) for a free drink. There’s a For- so is the Metro. tious crowd. It’s also open until seven in the bidden Fruit night on Tuesday, a Transves- So where to kick off? You could do worse morning at weekends. tite night on Thursdays, and male strippers than sample one of the hotel bars to ease For a touch of typically eastern European on Sundays. yourself into a wild night out. The Centro Bar decadence with a Russian twist, move on to and Lounge in the lobby at the Howard John- Deja-Vu, a ten-minute stagger away at B- Tone things down a bit at Club A (Str. Blănari son hotel (Calea Dorobantilor 5–7, Howard dul Nicolae Balcescu 25. Wild and sometimes 14), a Bucharest institution which stages Johnson Grand Plaza, tel. 201 50 30) has wide eccentric music, a very crowded dance floor plays, foreign movies and jazz as well as windows for early evening people-watching, open from midnight until 4am at weekends, dance music every night. If that sounds too for example, and good cocktails. The Klein and an unconventional range of cocktails ru- sedate, you can up the pace again to some- Bar and Bistro (Str. Smardan 11, tel. 313 93 moured to involve fire will make your visit thing frantic at Gossip (Str. Lanariei 90), with 15) at the Rembrandt hotel is a similarly re- unforgettable. As long as you don’t overdo house and breakbeat DJs, many of them re- laxed place to meet up and brace yourself it with the cocktails, of course, in which case cruited from top foreign clubs abroad. This for the rigors of the night ahead. you might not remember anything. is the last stop for many party animals and Now you’re ready to take the plunge. stays open to six in the morning. Planter’s Head for the Lipcsani area, in the south of Bavaria (Str. Orhideelor 19) is big enough to (Str. Mendeleev 8-10) is another established the central district, and you might find your- handle the huge crowds that descend on it favourite, in spite of its relatively high drinks

It’s easy to get around Bucharest on foot, plus inexpensive taxis and the extensive metro network are also available. Leisure 45 prices – so popular in fact, the place is packed The last word goes to – who else? – the to overflowing at weekends. top boss when it comes to Romanian nights top For live music, head for Music Club (Str. out. For a glorious taste of kitsch, dine out Baratiei 31) for top Romanian musicians who at the Count Dracula Club (Spl. Independ- sometimes augment the more than com- entei 8A ) and take in the Dracula show. It Local sights at petent resident band. Bucharest shares the sounds tacky and it is tacky, but food and ­Finnair destinations common eastern European fondness for drinks (try a Transylvanian Night) are good, all things jazz, and Art Jazz Club (B-dul N. and the Count himself is sure to put in an 1 moorish castle (Castelo dos Bălcescu 23A) is one top venue. It’s a little appearance. Mouros), c. 800, Sintra, Portugal. on the earnest side, though, so for some- thing trendier head for the Green Hours 22 ­Finnair flies to Bucharest 10 to 13 times a week Bran Castle (Castelul Bran, depending on a season. 2 Dracula’s castle), 1337, Bran, Club Jazz Café (Calea Victoriei 120); just make Romania. sure to reserve a table. Romanians are football balmy, and im- Gyeongbokgung Palace, 3 1394, Seoul, South-Korea. promptu celebrations break out after big international matches in the Universitajii square. If you want to follow big matches mumba devi mandir temple, 4 1675, Mumbai, India. in congenial and knowledgeable company, with reasonably priced beer and excellent bar food, try the Offside Pub (Str. Gabroveni 14) Tokyo Tower, 1958, 5 Tokyo, Japan. in the Lipscani area.

Bucharest’s busy night life offers many options, whether you’re looking for a romantic ­restaurant, a dance floor, a sports pub with widescreen TVs or a shadowy jazz bar. 46 Logbook The intense competition between airlines is also evident in business class equipment levels: for example, the life cycle of seats is shortening and new innovations are introduced at intervals of five to seven years. ­­Finnair’s fifth Airbus A330 long-haul aircraft, arriving at the end of 2009, will have new fully horizontal lie-flat bed seats, with­Finnair being one of the first airlines to introduce them. Maintaining the interface between airline and customer is vitally important. Text Maria Mroue

Every contact with the customer is a moment of truth

A brand arises from all the information, “With the new seats, long-haul busi- The look of the cabin tells customers experiences and images that customers ness class customers receive more space, that ­Finnair is developing and renew- have about a product or company. privacy and table space as well as, for ing itself. Through visual elements, the “Customer contacts continually most of the seats, direct aisle access,” airline strives to make the travel experi- create for us millions of moments of says ­­Finnair’s Development Manager ence as pleasant as possible. truth in which our brand is measured. Tero Lohimäki. “Clean and fresh surroundings How we wish our brand to be must be The new Thompson Solutions’ communicate that we handle things internalised in all of our operations, Vantage seats recline to completely hori- well here. Fabric patterns have been and it must be seen and recognised in zontal so, when resting, passengers can designed so that their rhythm and rep- the customer’s experience,” explains lie down without feeling that they are etition are easy on the eye throughout ­­Finnair’s SVP Commercial Division slipping or tense because of their ori- the entire cabin,” adds Lohimäki. Mika Perho. entation. The overlapping arrangement The company’s investment in service of the seats gives them more space and evelopment work is continu- quality is clearly visible, because at the aisle access. D ally done to improve customer beginning of 2009 ­Finnair rose to “It is really unbelievable how seats comfort and service quality. Because become a four-star airline in the Skytrax continually develop. The seat we have the work is done for customers, they classification. Skytrax ranks the service now introduced has been designed so also have a say in the process: of the world’s commercial airlines. In that there can be more seats in a certain “Frequent flyers participate in the ­Finnair, Skytrax evaluated more than area, but even so the passenger’s own working groups in which we choose the 750 details on 22 different flights in private space is bigger. By minimising new look. They also familiarise them- Europe and Asia. wasted space, environmental values selves and assess the models built in the are also taken into account,” says training centre,” says Lohimäki. ircraft interiors are an important Lohimäki. In addition to external values, A part of the customer’s experience ­­Finnair’s own criteria include the fire of ­Finnair. The seats are the customer’s n addition to long-haul traffic busi- safety and weight of materials. physical contact surface with the airline I ness class seats, the appearance of “Fire safety is the most important during the entire journey, so the best ­­Finnair’s entire fleet is being revamped: of the selection criteria: official regu- way to influence this contact is precisely seat fabrics, carpets, curtains and inte- lations and standards define certain by investing in the seats. rior panels will be replaced. The renewal safety requirements for materials. The will begin in March, when the first attention then turns to the different Airbus A330 aircraft arrives. Then the weight options. Lightweight materials new look will be extended to ­­Finnair’s consume less fuel during flight. They Embraer, Airbus A320 and Airbus A340 therefore produce less emissions and aircraft. are more economical,” says Lohimäki. “The cabin look must succeed in Cabin textiles are also chosen to communicating the brand values, just ensure they are durable and easy to as staff must be able to interact with wash. the customer correctly in a service situ- “Seat fabrics, for example, can with- ation. The new look will bring fresh- stand around ten washings. Ordinari- ness and brightness to the aircraft,” ly they are washed once or twice per says Lohimäki. year. Carpet use varies from month to The design of the look is based on month; in muddy weather they must At the beginning of 2009 ­Finnair rose to become a certain Finnish characteristics: Finns’ be washed often and we naturally use four-star airline in the Skytrax strong relationship with nature, the more of them,” says Lohimäki. service classification. integration of high technology into everyday life, and extreme climatic conditions serve as an inspiration and point of departure for designing the cabin interior. Leisure 47

The look of ­Finnair’s fleet and long-haul traffic A sauna with a view this dream will come true, and around it ­business class seats is we are also building a magnificent range of being renewed. Thompson of the runway high quality spa and wellness services,” adds ­Solutions’ Vantage seats Virkkunen. recline to horizontal. ­Finnair is flying more and more passengers The ­Finnair lounge and spa are being built via Helsinki, i.e. from Europe to Asia and in the airport’s non-Schengen terminal ex- back again through Helsinki. For these pas- tension. Design and material choices will be sengers, part of the ­Finnair experience arises based on ­­Finnair’s success factors: Finnish- at Helsinki-Vantaa transit airport. ness, freshness and creativity. “In 2001, 282,400 passengers flew on “In the lounge will be placed display ­­Finnair’s flights between Europe and Asia. cases presenting Finnish design,” contin- In 2008, this figure had grown to nearly 1.3 ues Virkkunen. million passengers. It’s clear therefore that “The Spa & Wellness complex will have it’s beneficial for us to invest in the ser- saunas, a mineral water pool, cold water vices offered to this passenger group,” says baths and rooms offering various wellness ­­Finnair’s VP Customer Concepts and Market- treatments,” says Esa Ranta, who is respon- ing Paavo Virkkunen. sible for designing the spa. In autumn 2009, ­Finnair will open a Spa & The wellness services will be provided by Wellness complex next to the new via.­Helsinki the German Paul Haslauer, who is a long- In autumn 2009, it will be Lounge at the Helsinki-Vantaa terminal ex- standing designer of spa products and ser- possible to watch aircraft tension. Planning of the spa was founded on vices. He has implemented a number of spa take-offs and landings from the Finnish concept of wellbeing: projects, the latest being in Montenegro. sauna benches. “We thought that it would be great if The lounge and spa are open to ­­Finnair’s customers could see the aircraft taking off and oneworld’s three highest tier customers and landing from the sauna benches. Now and also to other customers for a fee. 48 Logbook

­Finnair Catering is not only Finland’s biggest kitchen but also a logistics company that moves a huge amount of raw materials, equipment and sales goods. Leisure 49 Finland’s biggest and most international kitchen makes 18,000 meals for the sky every day. With the food is served one million bottles of wine per year, and the world’s best champagne. Catering’s most visible activity is providing inflight meals, but it is also the source of all those fine bottles, jars and chocolates that are given as homecoming presents. Text Senja Larsen

Fine cuisine at altitude

meal is an essential part of a flight. “In Japan they use sticky rice, in he logistics chain for inflight food A On flights to Japan stylish sushi India simmered basmati rice, and T is a long one. It sets special require- is served; on the Korean route spicy in Thailand fried rice is preferred,” ments for raw materials as well as trans- bibimpap. On longer flights there is explains Asplund. port and serving equipment. A portion time to enjoy a more extensive menu. Menus are planned with a panel of might be made up to a day before it In business class up to three starters experts. Twice a year candidate meals is served. It is also consumed in com- and main courses may be offered. are proposed and the menu for the pletely different conditions from where “Each nationality values the fact coming timetable season is selected. So it is prepared – literally at 10 kilometres that local tastes are catered for,” says that passengers travelling often on the up. ­Finnair Catering Vice President Kris- same route receive some variety, each Flight cuisine is also an art in itself, tiina Asplund. destination’s menu has a number of because food that tastes good on the Every new route opening is a learn- meal options, which are rotated regu- ground, may not necessarily work above ing experience in ­­Finnair’s kitchen. larly. the clouds. Catering’s chefs and cooks are har- Airlines compete intensely on all “Our customers are of all the world’s nessed to explore the myriad aspects fronts. ­Finnair believes that meals, nationalities, religious persuasions and of new cuisines under the guidance of and the drinks selection that goes age groups. The food must be universal, local chefs. with it, represent a significant means but at the same time tasty. This is about of competing. ­­Finnair’s wine list has as challenging as cooking can get,” says he challenges of inflight meals received international recognition. Asplund. T begin with the basics. For example, Last year, for example, Global Travel- Not to mention the passengers who as simple a task as cooking rice and ler magazine ranked ­Finnair business have special diets or some food restric- its varieties is completely different at class champagne and white wine as the tion. ­­Finnair’s various Asian destinations. world’s best.

For every new route, ­Finnair Catering learns the secrets of the local food culture. 50 Logbook “The number of special dishes is The total floor area of the new Cater- always growing; they can account for up ing building is nearly 14,000 square to ten per cent of the meals we prepare. metres, i.e. equivalent to two football For some destinations they may be pitches. The freezer is the size of a ordered for nearly the entire aircraft, three-room flat, i.e. 75 square metres, such as on Indian flights, where veg- and the refrigeration space 760 square etable dishes are extremely popular.” metres, i.e. the size of around three one- From Finland, food is provided to family houses. most of ­­Finnair’s European flights – Catering never sleeps. Flight meals always for the outbound flight, but are prepared 24 hours a day, all year nowadays very often for the return round. A total of 18,000 meals are flight, too. delivered daily to more than 200 flights operated by ­Finnair and many other air- lines. Food that tastes good on the ground, may not nvironmental friendliness is necessarily work above E emphasised at every work stage. the clouds. Energy efficiency was part of the plans from the very beginning of the design of the new Catering building. Much “The return flight meals are taken was invested particularly on sorting from the destination only if the flight’s waste and saving energy and water. overnight stay or long travel time “In connection with the move, one present challenges for storage.” in two equipment cleaning machines Even if the meals for return flights was decommissioned, which has signifi- are always purchased from the desti- cantly lowered consumption of water, nation, as is the case on Asian flights, electricity and detergent.” ­Finnair Catering checks the quality and Everything possible on flights is recy- inspects the hygiene standards of the cled. In the cabin, aluminium, glass and local kitchen. some plastic waste ends up at Cater- ing for recycling. On domestic flights he expansion of Asian traffic is energy waste is also recovered. T evident all over the airport area. Environmental work has been taken The old labyrinthine Catering build- seriously for a long time. ­Finnair Cater- ing gave way last spring to the termi- ing Oy was one of the first, and still one nal extension development of Helsinki- of the few, flight kitchens in the world Vantaa. to be awarded an ISO 14001 Environ- mental Certificate.

reparing for a long flight is no easy P matter. Nothing can be forgotten, An aircraft is a factory that produces because stocking up at cruising altitude only when it is in the air. During the is not an option. evening rush period, an aircraft must be “For example, Catering supplies for turned round and sent off to a new desti- one wide-bodied flight around 45,000 nation within one hour. This is a process individual items, ranging from forks that has been honed to perfection. The and knives to coffee cups and children’s loading truck is driven to the door of the toys as well as perfumes and sweets for aircraft, the used materials are pulled out sale,” says Asplund. and new items slotted in. The machine that would do all of Catering’s work has not yet been he price of fuel is evident in many invented, so manual work is invalu- T ways in Catering. A rising price able. A significant part of the price of increases the prices of foodstuffs and inflight food consists of its transpor- other items, and purchasing contracts tation. Catering uses specially-made have to be reviewed. Chef Juha Stenholm prepares Korean bulgogi. A bulgogi recipe elevator vehicles, each of which costs can be found on the following 200,000 euros. During the rush periods double-page. for traffic, every member of the elevator vehicle guard shuttles back and forth between the Catering building and the departure gates. Leisure 51 ­Finnair Catering employs 700 people, among whom are 30 nation- alities. The Catering building echoes with a spectrum of languages, because the company is one of Finland’s most multicultural working communities. “We have invested greatly in job satisfaction and effective interaction. In our highly diverse working envi- ronment we have learned that teams formed with common ground rules produce the best possible quality. Success is measured using many indi- cators, which are all promoting change in a positive direction,” says Asplund with pride.

ir traffic is susceptible to disrup- A tion and flights are sometimes late. Punctuality is affected, among other things, by the weather, conges- tion at airports and movement of other traffic. One place is always open when the airport has customers: the ­Finnair Shop outlets. “We extend our opening hours according to the flow of traffic when- ever possible, so that we can offer passengers somewhere to spend their time and the opportunity to buy our quality products. For many customers, airport shopping is an important part of travel,” explains Magnus Hannu- kainen, who is responsible for trading operations.

The machine that would do all of Catering’s work has not yet been invented, so Carrying every gram across the sky Flight catering depends a lot on manual work is invaluable. costs money. Work aimed at optimising tools and equipment. The passenger the weight of aircraft is never-ending. sees perhaps one or two food and Serving dishes are always made out of drinks trolleys at a time, when they are Although the tax-free system has the lightest possible manufacturing pushed through the cabin. The equip- ended in Europe, airport shop prices are material. The amount of equipment is ment cycle that streams through the still lower than in city centre stores. kept under scrutiny. Catering building has around 4,000. And a further competitive asset is “The aircraft might be in the air There are nearly 20,000 individual sales staff that know their products. every day for up to 18 hours. It is easy to plates, glasses and items of cutlery. One glance at a customer and the right calculate how big a sum a weight reduc- Around 400,000 items of disposable product is quickly found. There’s no tion of one hundred kilos, for example, cutlery are consumed per month. need to get lost among the rows of will save on fuel costs.” brands. A catering item streamlining project innair Catering is actually a profes- “Our product range is renewed is currently under way. The equipment ­F sional in three fields. Firstly, it is a really quickly,” says Hannukainen. “Our required on a flight is being jointly huge logistics company, which orders shops always have the latest cosmetics reviewed by cabin staff and service vast amounts of raw materials, equip- and seasonal products. The latest thing planning. There’s no desire to carry ment and sales goods. Secondly, it is is a battery-operated eyelash curler.” anything­ extra. the biggest kitchen in Finland making airline food. Thirdly, it handles retail sales at the airport and on flights. 52 Logbook ales are made on the ground, but S also in the air. Inflight sales in particular are planned in cooperation with the cabin service department. It is usually part of the flight programme. Inflight sales are considered part of the service. Passengers can select chocolates and gifts, for example, that they had no time to buy at the airport. “For almost all of the return legs of international flights, passengers can take advantage of the preorder bag service. For our customers, this is the easiest, most trouble-free option of all; there is no need to worry about awkward liquid rules or carrying the purchases on to the aircraft.”

Passengers can select chocolates and gifts that they had no time to buy at the airport. Bulgogi – Korean grilled beef If for some reason there is no time during the flight, the Arrival Shop pro- Bulgogi – grilled slices of beef, Bulgogi beef sauce Korean style vides one last opportunity to remember Serves four to buy that important homecoming Serves four present. 600 g strips of beef fillet “Passengers can therefore buy our 600 g marbled sirloin of beef 5 dl bulgogi marinade: see previous recipe products at any stage of their journey. Marinade Sauce Before departure, on the flight and on arrival,” says Hannukainen. 320 g soya sauce (low-salt) 5 dl bulgogi marinade: see previous recipe And what could be better than arriv- 2 dl water 20 g corn flour 30 g chopped onion 4 dl water ing, after a fine meal on the aircraft, to 100 g nashi (apple pear) in small cubes 50 g teriyaki sauce treat oneself to some Finnish chocolate. 40 g chopped spring onion 15 g sesame oil It’s the world’s best! 100 g sesame oil 2 g sesame seeds 60 g garlic paste 30 g ginger paste 1. Marinate the strips of beef in the bulgogi 30 g sesame seeds marinade for a few hours. 30 g beef bouillon powder 2. Prepare a sauce from one half of the bulgogi COmment 60 g granulated sugar marinade, to which is added water, teriyaki sauce ­Finnair Catering’s and sesame oil. Boil the sauce and thicken with 1. Mix all the marinade ingredients together. corn flour. After thickening cook for a further 10 business is divided 2. Cut the beef into thin slices. Add the bulgogi minutes. into meal prepara- marinade to the slices of beef and mix well. Let the 3. Brown the marinated strips of beef in a hot pan tion and related mixture marinate for a few hours hour. and add to the sauce. Bring to the boil. 3. Dry the slices of beef and brush them lightly 4. Finish the ready sauce with sesame seeds and logistics as well as with oil. serve with Korean rice. sales to customers on 4. Grill the beef on a hot grill or barbecue. flights and at the airport. The new Korean grilled meat is served with fresh, thin slices Korean rice product premises have enhanced the or strips of vegetables and various lettuce leaves and mixed green. 2.5 dl Korean or Japanese rice efficiency of our logistics chain. Inflight 3.5 dl water sales provide opportunities to expand the business. 1. Rinse the rice a few times and leave to swell for half an hour. kristina inkiläinen 2. Boil the rice for c. 20 minutes. Managing Director ­Finnair Catering Oy The flight deck crew, More than 20 working Sales of seats for the Ground handling The catering depart- aided by the flight dis- hours are devoted to flight begin around one personnel try to ensure ment delivers the food patcher, review factors aircraft maintenance year before the flight that everyone receives and drinks that will relating to the flight. for every hour of flying. itself. Seats might be the seat of their choice be served during the The flight is executed The aircraft’s technical booked and cancelled on the flight. Informa- aircraft as well as according to a flight condition is examined on several occasions. tion from the check-in inflight sales products. plan. The crew knows before every flight. The pricing of seats is system is transferred to ­Finnair Catering makes what the flight load will Different levels of main- influenced by supply the aircraft’s balance up to 18,000 meals per be. The captain decides tenance are performed and demand. calculation, which is day. The meals travel how much fuel will be on the aircraft at delivered to the flight in a cold chain from required. certain intervals. captain. kitchen to aircraft, where they are heated before serving.

Flight deck Maintenance Seats Check-in Catering/sales

Cabin Loading Refuelling Water/hygiene Cleaning

The cabin staff have The loading crew The tanks in the The aircraft’s water The aircraft is cleaned prepared for the flight loads the passengers’ aircraft wings are tanks are filled and after every flight and by reviewing the safety baggage, as well as filled with fuel for the the toilet waste tanks ­­Finnair’s Blue Wings factors. During the cargo and mail, into flight. In addition, the emptied. To ensure magazine is placed in flight the crew’s task is the aircraft hold so aircraft has enough hygiene, these tasks the seat pockets. to be responsible for the that it does not pose fuel for flying to a are done by different passengers’ safety and a risk during the back-up airport and people. They even comfort. flight. for holding in the air have separate dressing before landing. and rest facilities.

One thousand Daily air traffic requires an unbelievable ployed by the airline and its partners. Ensur- number of functions to work with seamless ing a safe flight for every passenger is the and one flight efficiency. Many aspects related to flying are common purpose of their work. also precisely regulated by international reg- ­Finnair has around 250 flights per day. operations ulations and agreements. In a network airline like ­Finnair, every one A process beginning with the sale of a of them is an individual, just like every pas- flight ticket and ending at the journey desti- senger. Flights are linked together when the nation involves numerous professionals em- passenger makes a transit connection. BEIJING

SHANGHAI

HONG KONG

BANGKOK

DELHI

MUMBAI

TOKYO

OSAKA

NAGOYA

SEOUL

THE BEST CONNECTIONS TO ASIA.

THE FAST AIRLINE BETWEEN EUROPE AND ASIA

FINNAIR_Vuosikertomus_200x270.indd 1 17.2.2009 10:06:47 Leisure 55 ­Finnair invaded the world’s streets, shopping centres and airports to tell people about its operations. The campaigns brought ­Finnair lots of attention in the international media. Text Fredrik Heinonen

A good story is never forgotten

Young visitors enjoy the small airline has to work much The challenge is to cloak the message interactive activity points A harder than others to become in a way that will interest the consumer during the Europe Travel ­known as an international operator. and the media. At the centre of the Show event. Even though ­Finnair is well known in campaign were international media Finland and neighbouring countries, relations, word-of-mouth and utilisa- the company is still an unknown quan- tion of new media. Interesting ploys tity in many international markets. and good stories were harnessed to In recent years, ­Finnair has also the task, as the airline communicated directed resources to PR-driven cam- its message in a memorable but, at the paigning. In 2008 ­Finnair conducted, same time, cost-effective way. in collaboration with Miltton, dozens of campaigns in various European and he first event was organised in Asian countries with the aim of increas- T Manchester in summer 2007, after ing recognition of the company and which strong campaigning continued in supporting sales. different parts of Europe. The goal was to tell about ­­Finnair’s unique position in traffic betweenE urope and Asia. 56 Logbook The world’s longest table tennis n Italy, ­Finnair focused on an event rally was played in Manchester – and I in the heart of Milan. it qualified for entry to the Guinness The street event was a big surprise to Book of Records. The campaign was Milanese businessmen. ­Finnair-branded covered by many sections of the media, Vespas carried them to restaurants rep- for example in BBC North’s morning resenting the cuisines of various Asian programme and on the streets of the countries. city. The outcome was a significant rise The goal in Milan was to remind in ticket sales. consumers of ­­Finnair’s efficient con- nections: one point offers a handy con- nection to many Asian cities. An inter- The campaign’s goal was national press conference was attended to communicate ­­Finnair’s by Italian Vanity Fair and other promi- unique position in traffic nent media representatives. between Europe and Asia. he biggest campaign package, T the Europe Travel Show, toured A campaign was also held in St. Peters­ Nagoya, Osaka, Shanghai and Beijing burg to increase awareness of Asian flight in October-November 2008. connections. The world’s largest chop- The Europe Travel Show reached not Street events and informa- sticks were erected in a shopping centre. only potential passengers but also local tion reminded the public The giant chopsticks also entered the representatives of the travel industry, that the world is not a Guinness Book of Records. The event companies and media. pancake. was witnessed by 10,000 consumers and 50 media representatives.

PR events were attended by travel industry professionals and corporate customers around the world. Leisure 57

top

­­F i n n a i r ’ s media visibility

Joong Ang Ilbo and Chosun Ilbo, 1 South Korea: First direct route to Northern Europe. 5 August 2008

Pekingin BTV5, China: Jukka 2 Hienonen and ­Finnair in a tele- vision broadcast. 11 August 2008

Class CNBC, Italy: ­Finnair and 3 Silver Bird in Class Life TV pro- gramme. 23 September 2008 The Hindu Business Line, 4 India: ­Finnair intends to uti- lise route between India and the USA – article. 3 March 2008

ZukunftsBranchen, Austria: 5 Future flying – article. 19 December 2008

The three-day events attracted fas- All of the 2008 campaigns were To achieve media visibility, one must cinated visitors at airports, fairs and highly visible in the media. A total of dare to try bold and untested solutions. shopping centres. The big draws of the 2,500 travel sector decision-makers and It is vital to present messages concretely events were various interactive activity 400 media representatives heard what so that ­­Finnair’s competitive asset points. ­Finnair had to offer in traffic between remains in the mind of every potential Particularly popular was a virtual Europe and Asia. passenger. travel photo booth, which enabled visi- Press articles covering ­Finnair had It is rewarding to take ­­Finnair’s tors to place themselves in European hundreds of millions of readers. This is message out into the world. Excellent landscapes. The picture was processed a significant number for a small Finnish connections, Helsinki’s unbeatable with Photoshop so that visitors found operator in a hard international com- location in traffic betweenE urope and themselves pictured in a Finnish lake- petitive environment. Asia, ­­Finnair’s long and impressive tra- land vista or at the foot of the Eiffel ditions, not to mention its Finnishness, Tower. The enthusiasm for this attrac- are excellent assets in international tion was tangible. In total, 90,000 contacts campaigning. Good stories have endur- were made during the PR ing power. he Europe Travel Show campaign campaigns. T achieved around 30,000 direct consumer contacts. In total, the 2008 PR campaigns resulted in more than n summary, the events can be said 90,000 contacts. I to have received an enthusiastic Press articles on the Europe Travel reception. New approaches are neces- Show were read by around 100 million sary in the face of intensifying inter- people. The events were attended by national competition, as are new ideas 100 media representatives and 400 and the courage required to implement travel sector decision-makers. them. With creative thinking, the news threshold is more easily crossed. As conditions change, vital minutes are added to the time required to turn aircraft around from one route to another.

2. Ground operations at the airport The answer is that this just isn’t pos- slow down. Fleet movements, the sible on a big scale in regular scheduled In the eye of driving of vehicles to new places and traffic. Traffic programmes and through physical human work done by staff them the schedules of tens of thou- to turn aircraft around all slow down. sands of customers cannot be painlessly a snowstorm At worst, loading vehicles may find it adjusted according to weather forecasts. impossible to get through the snow to An airline cannot tell its passengers to Column reach the aircraft. eat their breakfast more quickly because 3. In the event of a snow storm, a their flight departure time has been VIlle iho new work stage becomes necessary for brought forward because of de-icing. Vice President ground handling: de-icing. As condi- The dynamic, unfortunately, works PrTaneliod ucHassinention Management tions change, vital minutes are added only in the direction of delays. Xxxxxxx to the time required to turn aircraft 000 Snow is part of a Finnish airline’s life. around from one route to another. De- Big blizzards descend on Helsinki- icing takes between 5 and 20 minutes The effects of the latest storm for Vantaa at least a couple of times each depending on the conditions and air- ­Finnair in Finland were nine redirected winter and they can leave the best- craft type, and it can’t always be done flights, 15 cancellations, 55,000 delay planned schedules in tatters. in parallel with other departure sched- minutes, 3,000 disrupted connections, The public complaint “winter took ules. 3,000 delayed items of baggage, and a them by surprise again” is of course an 4. One delay leads to another. When fall in overall punctuality for the month international favourite used to accuse flights start to fall behind schedule, from an excellent 85.7 per cent to an inappropriate snow-clearing resources great pressure is exerted on transit ordinary 79.5 per cent. or infrastructure. But in all seriousness, traffic in particular. Although staff ­Finnair has become one of the best why does a snow storm weaken service working rotas are planned with flexibil- performers among European airlines performance? ity in mind, they can’t cope in extreme for punctuality. Many airlines struggle There are four main reasons: conditions. If there are delays during with airspace congestion, for example. 1. Traffic is reduced in line with what a peak period, it’s likely that there will ­­Finnair’s special challenge is harsh can be handled by air traffic control. probably be a shortage of labour some- winter conditions and periodic snow. Air traffic is based on a wave structure: where along the line. planes arrive and depart around the 000 same time to allow transit connections to be made. If capacity has to be reduced From the perspective of the ordinary during a “main wave”, there may be citizen, delay- and trouble-free flying dramatic knock-on effects. During the would be similar to a car driver digging latest winter storm, air traffic control a car out of the snow, cleaning it, driving closed the airport completely during an icy Helsinki ring road from one and the evening peak period. to the other, first with one lane closed and then the road completely closed for an hour. All this should pass as easily as in fair summer weather. And the return journey in the same fashion. One of the frequently asked ques- tions that follows is, why airlines and airports don’t give themselves more time and make allowances for special situations. Logbook Responsibility

Operating in accordance with the principles of sustainable development is vital for the whole industry. ­Finnair’s ability to bear its responsibility begins with its finances. A competitive and profitableFinnair ­ is able to invest in a modern fleet, which is the biggest environmental act an airline can make. ­Finnair takes environmental aspects into consideration in all of its actions. Social responsi- bility begins from inside: safeguarding jobs and the wellbeing of personnel is important for ­Finnair and is at the same time a prerequisite for success.

DELHI

11,800 km

HELSINKI

11,800 km (6,600 + 5,200)

NEW YORK

Long flights of more than eight hours generate less emissions and consume less fuel when a connection is made in the right place. 60 There has been demand both within the company and in the world out- side for the expertise of ­­Finnair’s VP Sustainable Development Kati Ihamäki, who began her work in February. In public debate, the entire aviation sector has been a scapegoat for climate change, and there has been a longing for genuine facts, a wider overall picture of sustainable development, fresh per- spectives and a realistic approach. Text Maria Mroue The environment as part of social responsibility

lying is the best form of trans- It has been calculated that air F port for travelling long journeys, transport carbon dioxide emissions because it is efficient and does not need represent around two-three per cent of much land area or infrastructure. Thus carbon dioxide emissions generated by flying does not spoil natural diversity humans. or valuable landscapes. Over long From the standpoint of sustainable distances, moreover, other forms of development, flying is easily the best transport cannot compete with flying form of transport for long journeys. in terms of speed. With three kilometres of runway, one Flying is easily characterised as an can travel anywhere in the world. How unnecessary luxury and wasteful con- far can one travel with the same length sumption. Yet at the same time, experts of road or rails? around the world travel to climate con- “Very little infrastructure is needed ferences to Bali and Japan – by air. Why? for flying, unlike road and rail, which Because more is achieved when issues need networks covering the journey. are discussed face-to-face. Very few non-renewable resources are “Airlines and the sector as a whole consumed,” adds Ihamäki. must, of course, take responsibility for The debate surrounding climate their emissions and environmental change has also led to demands to limit impact. But the impact of flying on the and reduce flight traffic. economy and social wellbeing must also “Some flying can, of course, appear be taken into account,” says Ihamäki. unnecessary, but who will draw the line and why? Would it still be like winning the lottery to be born in Finland, if The environmental impact leisure travel were prohibited? If only a of flying is not at all restricted elite were allowed to fly “nec- unreasonable in terms of essary flights”, entirely new class differ- its efficiency. ences would arise between people. According to Ihamäki it is to a large extent a geographical question, as to This is exactly what Ihamäki means where air traffic is needed. by focusing, instead of on a single issue, on a wider picture, namely social n ­Finnair, environmental work is not responsibility as far as companies are I a new subject, but Ihamäki brings a concerned. face to the issue and harnesses expertise “It’s clear that flying will continue to point everyone in the same direction. and that it is needed. The economy is ­­Finnair’s first environmental report was Travelling more global and production is being cen- published in 1997. tralised. The environmental impact of An airline’s most significant environ- sensibly flying, in terms of its efficiency, is not at mental choice is its fleet, but Ihamäki all unreasonable – on the contrary: for considers that the whole industry Many companies have recently announced example, when one examines the rela- should cooperate to reduce the envi- that they are reducing the amount of trav- tionship between carbon dioxide emis- ronmental effects. elling they do. sions and worldwide gross domestic continues on the next page • “Wouldn’t it be more sensible for com- product, it is difficult to find another panies to announce that they were reducing global industrial sector as efficient as the emissions caused by travelling by a third flying,” explains Ihamäki. rather than their travelling by a third? Reduc- ing travel will not necessarily reduce emis- sions, because uneconomical route choices, able resources and generates lots of emis- pere and Turku. From the airport we would the carrying airline and form of transport sions. Air transport consumes relatively low fly to other countries, where we could con- have a considerable impact on emissions,” amounts of non-renewable resources, but tinue our journeys once again by rail. observes ­­Finnair’s VP Sustainable Develop- does generate emissions to some extent. Every form of travel loads the environment ment Kati Ihamäki. “The nay-saying debate about the dif- in one way or another. More relevant than mu- The superiority of different forms of ferent forms of transport is pointless. The tual comparison is to compare and improve transport is continually debated: Rail trans- most important thing is the sensible use of matters within one’s own sector. port is miserly in terms of its climate emis- all forms of transport: they should be inte- “If, in some corner of the world, there sions, but on the other hand consumes a lot grated appropriately, both in passenger and are no roads or rail network, it’s clearly most of non-renewable resources. Emissions from cargo traffic,” urges Ihamäki. sensible to fly. If, on the other hand, the in- ships into the sea and air are considerable, Ihamäki wishes that Helsinki-Vantaa frastructure already exists, it’s worth mak- and car traffic both consumes non-renew- would be reachable by train direct from Tam- ing some journeys by train.” 62 Logbook

• “Airlines must, of course, invest in a modern, low-emission fleet, but air traffic control, for example, also has a big impact on the volume of emissions created. In addition, airports should organise their activities so that unnec- essary taxiing of aircraft is avoided.” Integrated air traffic control in Europe could achieve emission reduc- tions of around 12 per cent. “This issue has been discussed at EU level for a couple of decades, but no progress has been made, even though it would have a direct impact on emis- sions. On the other hand, emissions trading was pushed through in short order.” By an EU decision, European airlines joined the emissions trading scheme in 2012. “Emissions trading in its current form punishes European airlines, because airlines coming from elsewhere can fly overE urope without paying for their emissions. We really hope that a Environmental work involves many expert tasks and sector agreement can be reached on participation in public discussion. the issue, namely a global agreement covering all airlines, at the Copenha- Companies’ ability to bear their “In this respect, European emissions gen Climate Conference in 2009. Oth- social responsibility begins with their trading will weaken European airlines’ erwise Europe’s competitiveness will finances. A competitive and profit- ability to bear their responsibilities: as weaken.” able company is able to make ecologi- their competitive position weakens, cally sustainable investment decisions, investment capacity will deteriorate, ustainable development means provide jobs and implement responsi- companies’ position as employers will s fulfilling present needs without bility projects. be endangered, and development and weakening future generations’ oppor- responsibility projects will have to be tunities to fulfil their own needs. All reassessed. As companies’ investment human activity generates emissions or Emissions trading in its capacity weakens, airline manufacturers waste, but according to the principle current form will punish will be reluctant to invest in product of sustainable development the advan- European airlines. development, delaying further reduc- tage derived from activity must exceed tion in aircraft energy consumption the disadvantages arising from it. The and emissions. Instead of imposing advantages and disadvantages may be penalties and undermining operating social, ecological and financial. conditions, a mechanism should be created that rewards those who handle their affairs in an exemplary fashion.”

Towards A better Finnish Association for the last 13 years. In the period 2006–2008, Nature Conservation the cash from the collection as well as the Future Great rivers grow from small streams. The money allocated to ­­Finnair’s Christmas gifts Finnish Association for Nature Conservation and cards were directed to work against AIDS A better tomorrow is a difficult goal. By tak- and ­­Finnair’s three-year waterway protec- in Vietnam. ing responsibility and showing a good exam- tion project in 2005–2008 focused on the ple we can head in the right direction. ­Finnair protection of the Baltic Sea, and its coastal Reel time cooperates with a number of parties, for ex- waters in particular. An essential part of the The Reel Time Film Festival’s crop of envi- ample to promote the state of the environ- project was environmental education. ronmentally themed short films, made by ment as well as the position of children in de- young people, will be shown on ­Finnair’s lei- veloping countries. With its partners, ­Finnair Unicef sure flights. Cooperation between ­Finnair invests in long-term cooperation. In the fu- ­Finnair has been working with UNICEF and Reel Time in environmental education ture, projects promoting natural diversity since 1994. The Change for Good collection began in 2008 and it will also continue this may be included. has been made every year at Christmas for year. Responsibility 63

Distorted environmental images of air transport

Finns’ images of the environmental effects were five or ten per cent. In reality, in Finn- ­­Finnair’s VP Sustainable Development Kati of flying often do not correspond with real- ish transport, more than 50 per cent of car- Ihamäki. ity, states a study carried out in spring 2008 bon dioxide emissions arise from passenger The second question related to the con- for ­Finnair by the market research company car transport. sumption of non-renewable resources in Taloustutkimus. “It was nice to discover that only 12 per Finland by different forms of transport. Taloustutkimus conducted a telephone cent of those responding believed that the Seventy-four per cent of those interviewed survey in which more than 1,000 Finns were proportion of emissions accounted for by air knew that the biggest consumer is passen- asked three multiple choice questions relat- transport was more than 20 per cent. In a ger car transport. Twenty-one per cent were ing to air transport and the environment. corresponding survey conducted in the UK, of the opinion that air transport consumes Sixteen per cent of Finns knew that air most of the respondents believed that air the most non-renewable resources. transport’s carbon dioxide emissions in Fin- transport generated more than a quarter “Not one of the Finns believed that rail land are less than two per cent. More than of carbon dioxide emissions. Finns, there- transport consumed the most non-renew- 60 per cent, however, believed that they fore, have a better grasp of the facts,” says able resources, even though in reality it is the second biggest consumer, immediately after passenger car transport. It is important Finns consider the environmental impact of to discuss the climatic effects, but at the air traffic to be as follows same time we should also pay attention to the ecological footprint of different forms of transport,” says Ihamäki. What proportion of Finland’s carbon dioxide emissions Finland has 75 kilometres of runway, 1 are caused, in your opinion, by air transport? along which more than 17 million Finns travelled to different parts of the world in No response or don’t know Less than 2 per cent 2007. Finland also has 6,000 kilometres of 9% 16% (the correct answer) around 20 Per cent railway track, on which less than 13 million 12 % long-distance passengers (not including traf- Around 10 Per cent Around 5 Per cent fic within the Helsinki Metropolitan Area) 28% 34% travelled during the same year. In the MIPS (Material Input Per Service Unit) research method, natural resources are related to service performance and in Which form of transport consumes, in your opinion, this way eco-efficiency figures, for exam- 2 the most non-renewable resources in Finland? ple, can be obtained for different forms of transport. According to the research in Fin- No response or don’t know 3 % land, only travelling by bus and the metro are Air transport Passenger car transport more eco-efficient than air traffic. 21% (the correct answer) ­Finnair is often asked why it does not of- fer its customers the opportunity to offset Bus t­ r a n spo r t 1 % 74 % the carbon dioxide emissions arising from their flights. Rail transport 0 % “We have purposefully communicated that ­Finnair itself bears the responsibility for the emissions it generates, and we are reduc- Who, in your opinion, is responsible for the carbon ing them, for example, by modernising our 3 dioxide emissions caused by a flight? fleet. We have not set out directly to offer our customers the opportunity to compen- sate financially for their emissions. Research No response or don’t know The airline has shown that we are on the right lines: 54 12% per cent of Finns are of the opinion that the airline is responsible for its own emissions,” The passenger 34% 54% says Ihamäki. Have a look at ­Finnair’s emissions calculator Taloustutkimus, at www.finnair.com/emissionscalculator­ telephone interviews, 31 March–3 April 2008, respondents 1,007. 64 Logbook ­­Finnair’s raison d’être in recent years, and in the future, can be summed up in two words: Asia strategy. Without it ­Finnair would have withered away, but because of it the company can develop into something bigger. Text Manti Väätäinen-Pereira

A bamboo- framed existence

Four years ago ­Finnair told of the reverse China phenomenon: jobs from Finland did not disappear to China; the opposite was the case. Asian traffic had tripled in four years and brought a thousand jobs to the Finnish airline. Now, after 85 years in existence, ­Finnair has circa 60 flights per week to ten destinations in Asia. By 2007, Asia had generated work for 3,486 people. This figure comes from research on the impact of ­­Finnair’s Asia strategy. The research was carried out by Professors Seppo Ikäheimo and Panu Kalmi of the Helsinki School of Economics and Pro- fessor Tomi Laamanen of the Helsinki University of Technology.

etween 2001 and 2007, the number B of passengers on international flights at Helsinki-Vantaa Airport grew by 3.8 million. The researchers calcu- lated that around 23 per cent of this • growth will come from Asian traffic. Part of the growth of other traffic 500% can also be attributed to ­­Finnair’s Asia strategy, because Asian flights increase feeder traffic: two out of three pas- Asian traffic has sengers continue from Helsinki on increased six-fold in six a connecting flight to somewhere in Europe. years and brought to The Asia strategy has generated ­Finnair nearly 3,500 jobs. around 38 per cent of the growth in international passenger numbers at Helsinki-Vantaa This is a huge figure and it will have early all of ­­Finnair’s growth in et’s look into the future with the a big impact, not only for ­Finnair but N the period 2001–2007 came from L professors’ help. By their calcula- for society as a whole. Prof. Ikäheimo growth in scheduled traffic revenue. tions, the effect of Asia on employment is of the same opinion. This growth is precisely due to Asian is stunning; several hundred people per “It was a complete surprise that the flights, and the researchers also cal- year may be recruited. impact to date has been so extensive, culated the value of this additional By 2015 the Asia strategy as planned primarily on ­Finnair, but also on its revenue – 609 million euros. will have employed 8,158 people, using partners. The growth due to ­­Finnair’s And what if ­Finnair did not have its the 2007 turnover/employee ratio as a Asia strategy corresponds to around 3.7 Asia strategy? Everyone probably has a reference point. After seven years, Asia per cent of Finland’s GDP growth in pretty good idea that things would be will have produced a cumulative 45,233 2002–2007,” explains Ikäheimo. looking rather grim. person working years. Responsibility 65

• 3.7% ­Finnair’s Asia strategy generated 3.7% of Finland’s GDP growth in 2002–2007.

The research trio calculated that if ­Finnair lost the 609 million euros generated by the Asia strategy it would mean that the company would need 2,650 fewer personnel on the present turnover/employee ratio or more than 4,000 fewer personnel if the 2001 figures are used as a reference point. Then ­Finnair would have shrunk to half its present size, into a seriously damaged regional airline from which one in two employees would have had to leave to make a living elsewhere. 66 Logbook he Asia strategy is highly signifi- ther companies than ­Finnair are T cant for making ­Finnair what it O also turning their attention to top is today. It also has a huge impact on Oriental riches. No matter how tight the operations of ­­Finnair’s partners. things are financially, the company’s Helsinki-Vantaa, for example, would gaze must remain fixed on its vision Effects of Asia be a much smaller and more modest and future earning opportunities. strategy airport than it is now. Some time ago ­Finnair achieved its goal “The Asia strategy has been a suc- of daily flights to Tokyo after a 20-year 1 3,486 people employed cessful choice, when one considers wait. The flights will begin in 2010. up to 2007 what is happening in other airlines. It Our ten-year mega-goal is for ­Finnair 2 23 per cent of Helsinki-Vantaa’s inter- has been a wise course to take,” praises to have built, in addition to the already national passenger volume growth Prof. Ikäheimo. established Europe–Asia axis, a second 8,158 people employed When one asks the professors, axis between North America and South- 3 up to 2015 whether some corresponding phenom- east Asia, from Bollywood to Broadway, Around 3.7 per cent of Finland’s enon has happened in Finland business if not all the way to Hollywood. 4 GDP growth in 2002–2007 life comparable to the path taken by 609 million euros in additional ­Finnair, the answer is startling: 5 revenue 2001–2007 “The Nokia of the 90s was a corre- sponding success story. ­­Finnair’s scale is just smaller.” • 23% As a result of Asian traffic, international flight passenger numbers have risen by almost a quarter.

Alternatives presented per cent, the cancellation of holiday pay or addition, the number of ­Finnair Group per- in long employee the relinquishing of pay rises already agreed sonnel fell through the ending of 400 fixed- were proposed to ­Finnair’s personnel groups term employment contracts at the turn of negotiations in order to avoid redundancies, but person- the year or during the spring. nel representatives did not accept these pro- "As a result of this exceptionally long Employee negotiations covering the whole posals. The employee negotiations process and thorough process, we managed to limit Group were initiated in June 2008; the cargo continued during the autumn in the various the number of redundancies. "We have de- companies joined the negotiations in Novem- units of the ­Finnair Group. The six-month- voted much time to finding genuinely new ber. The goal of the negotiations (statutory long negotiations were completed in Janu- constructive alternatives to redundancies. employer-employee negotiations under the ary 2009. The company’s financial situation was re- Act on Co-Determination within Undertak- The need for personnel reductions was vealed to personnel representatives in detail ings) was to achieve 25 million euros of sav- estimated in the summer 2008 at 500 jobs. and they were given the opportunity to give ings in personnel expenses, corresponding to Around 120 of these were implemented as their own views on the issues," says ­­Finnair’s around five per cent of total personnel costs. redundancies. The remainder of the savings SVP Human Resources Anssi Komulainen, In September, a temporary pay cut of five arose mainly through temporary lay-offs. In describing the negotiations. Responsibility 67

MOVE SMOOTHLY BETWEEN EAST AND WEST.

Finnair fl ies the fast northern route between Asia and Europe, via Helsinki. This route is geographically the shortest.

THE FAST AIRLINE BETWEEN EUROPE AND ASIA

FINNAIR_Vuosikertomus_200x270.indd 2 17.2.2009 10:06:51 68 Logbook In ­Finnair Technical Services’ hangars, several aircraft are under maintenance and repair every day. The ­impressive doors of the huge hangars must be opened wide enough to allow the long-haul fleet’s wide-bodied aircraft, in all their grandeur, to glide inside. For this reason, property management was incorporated more fully into Technical Serv- ices environmental work last year. Text Maria Mroue

Energy under control in Technical Services

Jorma Salin of the Technical Services engine department’s electrical team services a turbine. Responsibility 69 innair Technical Services’ organisa- n addition to technical improve- ­F tion was significantly revamped in I ments, energy saving is also influ- 2008. Technical Services now consists enced by habits. of four main areas, namely: Technical “It is quite a challenge to begin Office and Maintenance Cost Monitor- changing people’s established working ing, Aircraft Repair and Maintenance, and consumption practices. But Engine and Component Services, and changes can be achieved when issues Logistics and Production Support Ser- are discussed sufficiently and sensi- vices. bly. Concrete issues, such as switching “The organisational reform is also off lights and engines and conserving evident in environmental matters, as water are easy to grasp, however,” says property management has been incor- Tepponen. porated more fully into environmental In autumn 2008 ­Finnair partici- work,” says Technical Services Property pated in an energy-saving week, during Manager Juha Tepponen. which the theme was discussed from many perspectives, for example in the he doors of the large hangars are personnel magazine, internal weekly T not opened unnecessarily, espe- bulletins and the intranet. The issue cially in winter. In the hangars there was also highlighted through posters are many ways to economise in energy and stickers. consumption without compromising “During the energy-saving week it on quality or speed. was clear that personnel were interested “We embarked on technical in the topic and stimulated to discuss improvements to properties in collabo- it,” says Tepponen. ration with YIT, which is responsible for our property management. With temperature regulation we achieved We got good results with good results, as we also did with a new precise regulation of lighting control board that enables us temperatures and lighting. to illuminate only the necessary areas at any given time,” explains Tepponen. Numerous other energy-saving nergy saving is also a financial solutions were also applied in Techni- E matter and the rising price of cal Services. For example, a system for energy is making it increasingly impor- keeping the hangar door rails unfroz- tant. en was updated by installing humidity “Technical investments made to detectors as well as temperature detec- reduce energy consumption cost money, tors. of course, but they finance themselves “With more precise information with the subsequent savings. Over the about the conditions, the de-icing longer term, the savings are significantly power can be regulated more suitably, greater than the costs,” concludes Tep- whereupon energy is not consumed ponen. unnecessarily on heating.”

Various paintings and tapings of ­air­craft, Aircraft components come in an impressive for example Moomin, Santa Claus and array of shapes and sizes. one­ world stickers, are also handled by Technical Services. 70 Logbook ­Finnair is in the middle of a long-haul traffic fleet modernisation. The European and domestic traffic fleet has already been renewed. At the turn of the decade ­Finnair will have one of the world’s most modern fleets. The in- tegrated fleet will have aircraft from only two manufacturers. Text Taneli Hassinen

Into a new decade with a modern fleet

­­Finnair’s modern passenger traffic fleet and reduces flight cancellations. Sta- With present orders, the ­Finnair is economical on fuel and it burdens tistics show that ­Finnair is one of the long-haul fleet will grow to a maximum the environment less than before. New world’s most punctual and reliable air- of 15 Airbus wide-bodied aircraft. By aircraft and their modern technology lines. the middle of the next decade, the back- reduce maintenance costs. In addition, The goal of the fleet modernisation bone of the long-haul fleet will consist the departure reliability of new aircraft is also to reduce further the number of of new-generation Airbus A350 aircraft, is higher, which improves punctuality aircraft types. It also cuts crew training of which ­Finnair has ordered 11. The costs and the need to uphold mainte- company has options for four more of nance preparedness for multiple types this aircraft. Relative fuel consumption and of aircraft. Aircraft can also be more ­carbon dioxide emissions per passen- flexibly exchanged from one flight to ger of different types of aircraft another in a fleet that contains fewer Crew utilisation is efficient, types of aircraft. as the same crews can fly both the long-haul and the fter the fleet modernisation is European traffic Airbuses. A completed in 2010, ­Finnair will have the aircraft of only two manufac- Boeing MD-11 turers in its scheduled traffic fleet. In innair has strengthened its balance 100 European and domestic traffic, Airbus ­F sheet for the coming aircraft acqui- A320 aircraft and Embraer 170 and 190 sitions. A share issue arranged at the aircraft will be used, while Airbus A330 end of 2007 attracted 244 million euros and A340 wide-bodied aircraft will be of new capital for investments in the used in long-haul traffic. The latter will next few years. In addition, ­Finnair has replace the remaining Boeing MD-11 credit facilities totalling 300 million Airbus A340 aircraft used by ­Finnair mainly during euros. Some of the wide-bodied aircraft 95 this year. will be acquired with leasing arrange- ments in order to limit residual value risk. A modern fleet is For its leisure flights, ­Finnair uses economical on fuel the most popular type of aircraft in and burdens the this traffic segment, theB oeing 757. In Airbus A330 environment less. terms of their annual utilisation rate, 86 ­Finnair Leisure Flights’ 227-seat air- craft are the world’s most efficient fleet The fleet can provide a suitably for this type of aircraft. The lease agree- sized aircraft in terms of seat numbers, ments of all seven of Leisure Flights’ selected according to demand, for each aircraft will expire at the beginning of individual route and flight. Crew utili- 2010, at which time the mutual harmo- Airbus A350 sation is efficient, as the same crews can nisation of the leisure flight and sched- 64 fly both the long-haul and the Euro- uled traffic fleets will be considered. pean traffic Airbuses.

Fleet modernisation achieves considerable fuel savings, which in turn cut costs. Emissions are reduced at the same time. Logbook Future

Last year ­Finnair celebrated the 85th anniversary of its founding. A proud history is a notable achievement, but looking to the future is even more important. In honour of the its 85th anniversary year, Finnair­ peeked as many years forward: How will we be flying in 2093? With the aid of experts, ­Finnair produced a book on the future, in which Airbus representatives, among others, envisioned what the flying in the future might be like. In a stimulating international discussion, the exploration of the future fulfilled its objective: around the world it has been covered by more than 1,000 media outlets, and in India alone around 200 million people were reached by a single press conference.

MOON

HELSINKI

2093 2008

DELHI

Alongside traditional holidays in the sun, the travel agencies of the future may also sell space vacations. 72 Logbook ­Finnair took to the air in the early days of commercial aviation and thereafter has constantly discovered new dimensions in travel. Now, a comprehensive European route network and growing Asian services have made ­Finnair a significant player in traffic between Europe and Asia, mentioned in the same breath as the larger European and Asian airlines. Text Taneli Hassinen

­Finnair time machine takes you to the future

In the 1950s Convairs represented the latest aircraft technology. The aircraft had a pres- surised and spacious cabin. Future 73 fter watching the flight of birds for ­Finnair has not delayed in making A thousands of years, humans finally the openings that have ushered Finland succeeded in learning their secret and into the world. The DC-8 fleet, with its gradually escaped the grip of the earth. new navigation technology, began to Initially it was surely only an exciting add destinations from completely new new element, and in fact for decades, continents to ­­Finnair’s route map. At after aviation had already changed that time, people were gently reminded from a hobby into a commercial from that the world is not a pancake but a of travel, flying still captivated those ball; an orange and a felt pen, with who managed to admire the ground which a line was drawn across the and the world with the eyes of a bird. northern hemisphere, were used in In the early days of aviation history, advertising to demonstrate the shortest among the very first people to sense the route between Finland and America. commercial possibilities of air transport was the Finnish consul Bruno Lucan- der, who in November 1923, together When opening routes with a few business partners, founded to new continents, the joint stock company Aero Oy, which people have to be reminded eventually, in 1968, changed its name that the world is not to ­Finnair. ­Finnair had first been intro- a pancake but a ball. duced as a marketing name in the early 1950s. Today, ­Finnair is the world’s fifth-oldest currently operating airline. he global geography was naturally Why has ­Finnair been able, time and T also the same in an eastward direc- time again, to offer new dimensions in tion. The restrictions were primarily air travel? political, however. The first barrier was Because for its customers ­Finnair the border between Finland and the is a time machine – a solution to its Soviet Union. Of course, ­Finnair flew customers’ time problems. A ­Finnair over the border to Moscow and Lenin- connection has been always faster, more grad, but beyond the Urals was another punctual and safer than the others. matter altogether. In Siberia there were ­­Finnair’s history as one of the long- no air traffic control systems or naviga- serving stalwarts of its industry is also tion rights. the development of the Finns’ world Japan’s transport policy, moreover, view during the last century or so. Of restricted direct connections. Never­ course, ­Finnair itself has been strongly theless, ­Finnair eventually opened direct involved in promoting the opening of flights from Europe to Japan, the first doors and windows to the world from European airline to do so. The persist- one of Europe’s outlying states. ent Finn flew to Tokyo over the North The first­Finnair – then Aero – route Pole using extra tanks, which carried network connected the capital cities of the fuel required for the additional neighbouring countries around the three hours of flight. In the 1990s, Gulf of Finland. Similarly, the opening flight paths over Russia to Asia were of flight connections to Sweden was a finally opened. Long-term transport natural next step. policy work produced results. The opening up of Europe to Finland The political situation in China took place very much in step with the also changed decisively during the extension of the Aero/­Finnair route map. 1990s, and the country opened up to In the early decades, this particularly foreign tourism and business. Barriers involved strengthening economic and to ­­Finnair’s eastern conquest had for political links to the centres of Europe. the most part been removed. Those who represented Finland interna- A comprehensive European route tionally increasingly did so by flying. network and growing Asian traffic have It was not until the 1970s, however, made ­Finnair a more significant player that ordinary people gained access to in traffic betweenE urope and Asia than air travel. This opportunity was offered in its domestic market, and it is men- above all by charter flights, which were tioned in the same breath as the large cheaper than scheduled services. The European and Asian airlines. ­­Finnair’s road to cultural exchange between Asian traffic growth has been in a class Finland and the southern holiday des- of its own in recent years. tinations was irrevocably opened. 74 Logbook ­Finnair has already set its next In the technical development of Currently, ­Finnair is modernising its targets. Vision 2017 outlines ­­Finnair’s aviation, ­Finnair has travelled on the long-haul fleet with two-engine Airbus future as a quality inter-continental leading edge throughout its history. A330 wide-bodied aircraft. By the airline of the northern hemisphere. The latest aircraft technology innova- beginning of 2010, ­­Finnair’s fleet will Achieving this position requires good tions have been utilised through the be the most modern in the world. By connections between Europe, Asia and decades for the benefit of ­­Finnair’s the middle of the next decade, more- North America. business and customers. over, new-generation Airbus A350XWB The shortest routes from Europe to aircraft will form the backbone of the Asia, as from many North American long-haul fleet. areas to Asian centres, run via Finland. Helsinki and its airport therefore offer modern fleet is important to the a convenient place to transfer from one A airline for financial reasons. The flight to another. For Finns this means Vision 2017 outlines fuel price is permanently at a higher direct connections to various parts of ­Finnair’s future as a level than it was even a few years ago. the world. ­Finnair carries passengers quality inter-continental The fuel economy of new aircraft is and cargo on the shortest route to airline of the northern clearly more efficient than previous their destination with no unnecessary hemisphere. generations’. complications. Hand in hand with fuel consump- tion are carbon dioxide emissions. New engine technology and lighter materials reduce emissions significantly. ­Finnair will cut the emissions produced by its long-haul aircraft by one third. Air traffic generates worldwide about two per cent of greenhouse gases. Despite low environmental loading, eight per cent of the world’s domestic product is dependent on air transport services. The International Air Trans- port Association has set as the target of making air transport an emissions neutral sector by the middle of the century.

ll the conditions for air traffic A growth exist. Growth will even accelerate significantly as zero-emission technology is commercialised and widely introduced. A proviso, however, is a com- mitment to sustainable development. This will require from airlines a healthy financial condition and an ability to invest in the latest technology. Air transport has long-term opera- tors such as ­Finnair. Others come and go. ­Finnair knows its strengths and it is building the future on their founda- tion. Last November ­Finnair celebrated the 85th anniversary of its founding. The visionaries of the 1920s saw – or at least envisioned – something that their contemporaries did not see. We in ­Finnair also envision that air trans- port is just at the beginning of its road. In the early 1960s, ­Finnair entered the jet age with the Caravelle We are already planning what ­Finnair (above). At the end of the decade, the company was already will look like 85 years from now. Then using DC-8 aircraft to fly the Atlantic. our task will be to solve people’s time problems and offer a time machine for our customers’ use. Welcome aboard our flight to the future! Future 75 In 85-year-old ­­Finnair’s anniver- sary year, we witnessed the beginning of a very stormy time for the entire airline industry, with the oil price climbing to record highs and global economic conditions depress- ing demand. Text Maria Mroue A stormy anniversary

ith its modern fleet and direct W flights, ­Finnair carries millions of passengers and kilos of cargo to a total of more than 120 destinations around the world. The investment in Asian traffic and efficient transit travel via Helsinki, which began at the turn of the millennium, is continuing strongly. During the anniversary year, the airlines’ struggle for survival claimed numerous victims, and in ­Finnair, too, preparations were made to survive the storm. The company did celebrate its distinguished history, however, but at the same time turned its gaze further to the horizon, towards a brighter future. To mark the company’s anniversary, passengers who travelled by blue-and- white wings were served birthday cake and traditional rowanberry sweets.

Gaze fixed on the horizon, towards a brighter future.

rom the end of July, ­­Finnair’s F gleaming silver retro aircraft revis- ited history. The Airbus A319 aircraft was painted in the livery of a ­Finnair Convair aircraft, which began operat- ing in the 1950s. During the anniver- sary year, the aircraft’s crew were also dressed in uniforms from the 1950s, on around 60 retro flights. The retro aircraft, named the Silver Bird, made its first flight to Copenhagen on 30 July. The surface of the Silver Bird is a gleaming silver, with blue stripes on its At the retro aircraft’s turbine: side and the text Finnish Airlines. The Captain Vesa Mattila, Flight retro theme was also adopted inside the Attendant Annika Lepola cabin in the food, drinks and in-flight and Purser Meri Liukas. entertainment. The aircraft will operate within the ­Finnair fleet in its retro livery for several years, because the company does not wish to load the environment with extra painting. 76 Logbook “Since the days of the Convair, ­Finnair has moved completely into the jet age, and our annual passenger numbers have increased 90-fold. But certain points of contact with the 1950s can be found: the Convair in its time represented the leading edge of development, just like ­­Finnair’s present young and eco-efficient Airbus fleet inE uropean traffic,” explains ­­Finnair’s now retired SVP Scheduled Passenger Traffic Henrik Arle. During Managing Director Leonard Grandell’s time in the 1950s, ­Finnair was the first airline inE urope to acquire the Convair. The aircraft was unique in terms of passenger comfort, because for the first time it had a pressurised cabin.

The Convair then represented the peak of development, just like ­­Finnair’s present European fleet.

n the original Convair, the cabin I had two rows of leather seats, tasty meals were eaten for the first time from real tables, and the aircraft even had a Philishave electric razor for the passengers’ use. The first Convair arrived in Hel- sinki on St. Valentine’s Day 14 Febru- ary 1953. Exactly two months later, the aircraft started flying on its first route, Helsinki–Copenhagen–Dusseldorf. At the same time, ­Finnair was introduced as a marketing name alongside Aero. It became the company’s official name in 1968.

An Airbus A319, named the Silver Bird, is The retro crew from top to bottom: Captain Vesa Mattila, painted in the livery of a ­Finnair Convair Flight Attendants Annika Lepola and Camilla Adams- aircraft, which began operating in the 1950s. Korvenoja, Purser Meri Liukas and Flight Attendant Sonja Mälkki. Future 77 After 27 years of service, the last Convair was donated to the Finnish Aviation Museum in November 1980. The aircraft is still exhibited today as one of the museum’s biggest attrac- tions.

he company’s longevity was also T celebrated in a modern spirit, with an exhibition of Asian contemporary art Drawn in Clouds, which ran from the beginning of November 2008 until February 2009. The exhibition, held in the Museum of Contemporary Art Kiasma, showed works by Japanese, Korean and Chinese contemporary artists. On 2 November, ­Finnair waived the admission fee for those who wished see the exhibition, and on that day the museum was visited by more than 4,000 people. It is more important at present to look towards the future. To mark the company’s anniversary year, it was decided to publish, instead of a history, a vision of the future, boldly looking 85 years ahead. In the book Departure 2093 – Five Visions of Future Flying, ­Finnair enlists the aid of experts to highlight fascinating perspectives on the future of air travel. These visions can also be read and shared on the website www.departure2093.com.

Read more about the visions of the future on the pages that follow.

A red carpet and gleaming classic car bring a dash of glamour. 78 Logbook Will we be flying faster than sound in 2093?W ill aircraft look like flying saucers?W ill they need fuel and produce emissions? And what about space? Will we be vacationing there? To mark the 85th anniversary of its founding, ­Finnair decided, instead of dwelling on the past, to grasp the future in a book: Departure 2093 – Five Visions of Future Flying. The discussion continues on the internet. Text Maria Mroue Illustrations Kauko Helavuo

Who wouldn’t wish to peek into a crystal ball some time? Already a glance at the newspaper advertising columns gives an indication of the services that people will like and the kind of busi- Check-in 2093 ness that will be profitable. The most cynical say that forecasting is impos- sible: one guess is as good as another. Others say that history repeats itself, while still others trust in the predictive power of statistics. Future 79 Precisely forecasting the future is irlines are currently battling In the book Departure 2093 – Five impossible and perhaps that’s why it’s A through perhaps the worst crisis Visions of Future Flying, published in so tempting. Justified views and sce- in their history. The only airlines to November 2008, ­Finnair enlists the narios that open up possible realities survive will be those that adapt best to aid of experts to highlight perspectives are necessary, however, both in business changes in the operating environment that are both essential and fascinat- and in social planning. and are able to invest in modern, energy- ing when addressing the future of air ”The future and the past are at least efficient fleet. Over time, however, new travel. Professor Sirkka Heinonen, a differentiated by the fact we can influ- technology and new business models future researcher, and Pascal Huet, who ence the future, but we can do nothing will create better conditions for sustain- is responsible for strategy at Airbus, about the past. That’s why envisioning able growth. consider the future and growth of air and looking towards the future are travel from the perspective of human so important,” says the father of the movement. Professor of Environmen- future book idea, ­Finnair SVP Commu- tal Change Atte Korhola and IATA’s nications Christer Haglund. Director of Aviation Environment Paul Steele, on the other hand, shed light on the environmental impact of flying.

The space hotel is positioned at an altitude of around 500 km, in an orbit that takes the hotel around the Earth every nine hours. Tourists’ average stay at the hotel is four days. During this time they orbit the Earth around ten times in a state of weightlessness. The space hotel is a very popular honeymoon destination. Service ships carry passengers directly to the space hotel. 80 Logbook There are as yet no correct answers to In reality, it is hard to find a more A wide-bodied, zero- the questions posed by the future, but eco-efficient global industry than emission supersonic aircraft, there are a host of captivating visions. flying. With around two per cent designed for long-haul routes. The fuselage is The significance of creating visions of carbon dioxide emissions, it produces constructed from ultralight the future in corporate strategy work around eight per cent of the world’s and ultrastrong nanocer- is examined by Sirpa Juutinen of the gross domestic product. Measured amic material. Intelligent auditing firm PriceWaterhouseCoo- by ecological footprint, flying is over- wings take speed and condi- pers. whelmingly the best form of travel on tions into account, thus ”An ability to see into the future is long journeys, because it needs practi- saving energy and reducing noise. Passenger comfort a prerequisite for success in the man- cally no infrastructure and is the fastest is top class. The aircraft is agement of any company. Few people, option. partly on two levels. however, possess a crystal ball, so outlin- “With a three kilometre runway, you ing the future is dependent on visions. can travel anywhere in the world, but This can succeed when, with an open how far can you travel with the same mind, one also utilises aspects and phe- length of rail or road?” asks Haglund. nomena from outside one’s own tradi- ”Air transport is, in principle, an tional operating models,” says Juutinen. extremely ecological way of moving around. It happens in the air, and doesn’t take up land space, weaken With a three kilometre natural diversity or spoil valuable land- runway, you can travel scapes,” declares Prof. Korhola. anywhere in the world, As a sector, air transport is, of but how far can you travel course, responsible for its emissions, with the same length of and the joint goal of IATA, announced rail or road? in spring 2008, is zero-emission flying within the next fifty years. ”Nowadays our aircraft have engines. n the public debate on climate In the future, thrust may be generated I change, air transport has become in many other ways, for example using a scapegoat. Attempts are made to the existing force fields in the atmo- portray flying as an unnecessary luxury. sphere,” envisions ­Rainer Von-Wrede But what would happen if there were of Airbus. no flying in the world? Alongside the social and economic consequences of this, the current financial crisis would seem like a gust of wind.

A zero-emission aircraft, designed for short-haul routes, which takes off along a runway or vertically. The electricity needed in the vessel is generated by solar panels on its outer surface. All materials are one hundred per cent recyclable. Under the aircraft are four large, turning engines and behind four smaller ones. Around half of the vessel’s 600 to 850 passenger places are 1 to 4 person cabins. Future 81

A charter vessel with turning engines located in front – designed for both gliding and vertical take-off. Passengers are accom- modated in 1 to 4 person cabins. The vessel has lots of different leisure and confer- ence services.

hen considering the tourism of In the book, a space hotel is men- “In the book, we present visions W the future, the destination list tioned as a popular future honeymoon that are hardly precise images of the also includes space. The first Finns have destination. The idea of a honeymoon future. Rather they may still be light- already bought their tickets for space: spent in weightlessness also became years away from reality in 85 years’ writer Heikki Haapavaara is one of news in the international media in time. The intention is not, however, to three Finnish men who will travel as November to December. predict or guess correctly, but to begin tourists to space in 2012 on a space- a debate on which the future will be craft operated by the company EADS built,” explains Haglund. Astrium. Space tourism will The book, Departure 2093 – Five In the book Departure 2093 – Five be possible alongside Visions of Future Flying, is on sale in Visions of Future Flying, Airbus experts traditional holidays in the Academic Bookstore and in ­Finnair Henrik Roesner, João Frota and Ingo the sun. Shops at Helsinki-Vantaa Airport. Wuggetzer visualise the development of aviation technology, and images of The debate continues at the address the aircraft of the future created by uture research as a scientific field ­www.departure2093.com artist Kauko Helavuo give flight to our F is based on the assumptions that imaginations, where we can continue future cannot be predicted and that it all the way to space in a Heikki Haa- is not predetermined, but that we can pavaara story. influence it. In accordance with these ”Space travel, moon vacations and principles, we can look into the future journeys to depths of the oceans will be also in the ­Finnair book. possible alongside traditional holidays in the sun,” explains Prof. Heinonen. ONE STEP AHEAD TO ASIA.

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FINNAIR_Vuosikertomus_200x270.indd 3 17.2.2009 10:07:8 ­­Finnair Group’s Board

Christoffer Taxell Kari Jordan SigurÐur Helgason Sat u H u ber b. 1948, LLM, former Government b. 1956, BSc (Econ), President b. 1946, MBA, CEO of Icelandair b. 1958, MSc (Econ), Managing Minister, Chancellor of Åbo Akademi and CEO of Metsäliitto Group; 1985–2005; Chairman of the Board Director of the Tapiola Pension Ltd; University; Chairman of the Board Chairman of the Boards of of Calidris ehf. 2005–2007 (Deputy Member of the Investment Council of the organisation Föreningen M-real Corporation, Metsä Tissue Chairman since August 2007); of Finnish Industry Investment Konstsamfundet and Åbo Akademi Corporation and Metsä Botnia Ab; Chairman of the Board of Skildingur Ltd; Deputy Member of the Board University Foundation; Chairman Deputy Chairman of the Boards of Investments ehf.; Chairman of of Svenska Handelshögskolan i of the Board of Stockmann Plc; Metsäliitto Group and VAPO Oy; the Board of Icelandair Special Helsingfors; Member of the Board of Member of the Board of Sampo Deputy Chairman of the Children Travel Fund and Member the Finnish Cultural Foundation’s Plc, Nordkalk Corporation, Luvata Confederation of Finnish Industries of the Board of The Einar Jónsson Support Association; Member of the Oy; and Member of the Investment EK; Chairman of the Board and Art Museum. Member of ­­Finnair National Emergency Supply Agency; Committee of the Society of Swedish Working Committee of the Finnish Group’s Board since 2007. and Member of the Expert Group on Literature in Finland. Chairman Forest Industries Association; State Ownership Steering. Member of ­­Finnair Group’s Board since 2003. Member of the Supervisory Boards of ­­Finnair Group’s Board since 2006. of the Finnish Business and Policy Forum (EVA) and the Research Institute of Finnish Economy (ETLA). Deputy Chairman of ­­Finnair Group’s Board since 2003.

Markku Hyvärinen Ursula Ranin Veli Sundbäck Pekka Timonen b. 1948, Chairman of the Board of b. 1953, MSc (Econ), LLM, in b. 1946, LLM, Executive Advisor of b. 1960, LLD, teaching and research Cooperative Tradeka Corporation; the service of Nokia Corporation Nokia Corporation; Secretary of State positions at the University of Helsinki Deputy Chairman of the Board 1984–2005, incl. General Counsel at the Ministry for Foreign Affairs 1984–2001; Secretary-General of of Mutual Insurance Company 1994–2005, Secretary of the Group 1993–1995; Deputy Chairman of the the Ministry of Trade and Industry’s Kaleva; Member of the Board of Executive Board 1992–2005, Board of the International Chamber Foreign Ownership Committee If Skadeförsäkring Holding AB; Secretary of the Board of Directors of Commerce (ICC) Finland; Chair- 1990–1991; Ministerial Advisor Member of ­­Finnair’s Supervisory 1996–2005; Member of the Board man of the Board of the Finland- in the Ownership Policy Unit since Board 1992–1997 and Chairman of UPM-Kymmene since 2006 and China Trade Association; Chairman 2001; Director-General of the Prime 1997–2003. Member of ­­Finnair Member of the Board of Nordea of the Board of the Technology Minister’s Office Ownership Steering Group’s Board since 2003. Bank AB (publ) since 2007. Member Industries of Finland Centennial Department since 2007; Chairman of ­­Finnair Group’s Board since 2006. Foundation; Chairman of the Board of the Board of Suomen Erillisverkot of the John Nurminen Foundation; Oy since 2007. Member of ­­Finnair Member of the Board of the Finnish Group’s Board since 2008. National Theatre; Chairman of Board of Huhtamäki Plc 1995–2005. Member of ­­Finnair Group’s Board since 2004.

Information on share ownership can be found in the financial report and at the address www.finnair.com/group­ Finnair GRoup’s management as of 1 January 2009

Jukka Hienonen Lasse Heinonen Christer Haglund Anssi Komulainen b. 1961, MSc (Econ), ­Finnair Plc’s b. 1968, MSc (Econ), Chief Finan- b. 1959, BA, SVP Communications, b. 1964, BA, SVP Human Resources, President and CEO, in ­­Finnair’s cial Officer,­Finnair Plc’s Deputy Member of the Executive Board, Member of the Executive Board, in service since 2005. Hienonen previ- CEO, Member of the Executive in ­­Finnair’s service since 2000. ­­Finnair’s service 1989–1999 and ously worked for Stockmann Plc, Board, in ­­Finnair’s service since Haglund has worked as a journalist since 2001. Komulainen has worked ultimately as a Senior Vice President. 2004. Heinonen previously worked and in the service of the Ministry in various management posts in Before this he held management as Chief Financial Officer for the for Foreign Affairs in various media the restaurant sector as well as in positions in marketing with e.g. Tim- Novartis pharmaceuticals company positions in Finland, Sweden and the ­Finnair Catering’s service, ultimately berjack Oy and Kaukomarkkinat. e.g. in Switzerland and Turkey. United States. as its Managing Director and SVP Catering.

Mika Perho Veikko Sievänen Kimmo Soini Kaisa Vikkula b. 1959, BA, SVP Commercial b. 1947, Flight Captain, SVP Flight b. 1958, MSc (Eng), SVP Technical b. 1960, DSc (Econ), SVP Leisure Division, Member of the Executive Operations, Accountable Manager Services, Member of the Executive Traffic and Travel Services, Member Board, in ­­Finnair’s service since referred to in the Airline Operator’s Board, in ­­Finnair’s service since of the Executive Board, in ­­Finnair’s 1985. Perho has held management Certificate, Member of the Executive 1983. Soini has held various posts service since 2006. Vikkula previ- posts in ­Finnair sales and marketing. Board, in ­­Finnair’s service since in the service of ­Finnair Technical ously worked in the finance and 1973. Sievänen has worked as a Services, e.g. Aircraft Maintenance capital markets, as an investment pilot of various types of aircraft, ulti- Manager. He has also been Manager relations and communications direc- mately as a Boeing MD-11 captain of ­Finnair Scheduled Passenger tor for Partek Plc and Managing and ­­Finnair’s Chief Pilot. Traffic’s Maintenance Unit. Director of Mascus Oy.

Finnair Goup’s Management Personnel Secretary to the also includes: representatives: Finnair Goup’s Board and Finnair Goup’s Management Kristina Inkiläinen Mauri Koskenniemi Sami Sarelius SVP Catering and Managing Direc- Purser, Chairman of the Finnish Vice President and General Counsel tor of ­Finnair Catering Oy Flight Attendants Association Jukka Hämäläinen Juhani Sinisalo Managing Director of Northport Oy Personnel Fund Representative Antero Lahtinen Timo Kettunen SVP Cargo, Managing Director Systems Analyst, Representative of ­Finnair Cargo Oy and ­Finnair of the Finnish Aviation Employees Cargo Terminal Operations Oy Association Tiina Sillankorva Purser, Chairman of ­Finnair in ylemmät ry

Information on share ownership can be found in the financial report and at the address www.finnair.com/group­

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