market environment and strategy - finnair/media/files/f/finnair-ir/... · 2016. 11. 25. · india...
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Finnair Capital Market Day, 3 Dec 20121
Market environmentand strategy
Mika VehviläinenCEO
Finnair’s vision
Double our revenue between Europe and Asia by 2020
Become the most desired option in travel between Europe and Asia
Become number one airline and grow in the Nordic countries
Finnair Capital Market Day, 3 Dec 20122
over 50 European
destinationsTokyoNagoyaOsakaBeijingChongqingShanghaiHong KongSeoulBangkokSingaporeDelhi
11 Asian mega-cities
Finnair offers the fastest connections between
12 Asian mega-cities
Hanoi from June 2013
Finnair Capital Market Day, 3 Dec 20123
Manchester
London
Budapest
BrusselsRome
Oslo
BarcelonaMalaga
Vilnius
Moscow
St. Petersburg
HELSINKI
Stockholm
Gothenburg
Gateway to Europe for our Asian customers
Finnair Capital Market Day, 3 Dec 20124
Finnair has strong presence in Asian key economies, weekly frequencies*
Finnair Capital Market Day, 3 Dec 20125
27
50
34
2429
Finnair Lufthansa Air France KLM IAG
China Japan
Republic of Korea
6
13
7 7
Finnair Lufthansa Air France KLM
2428
2116
Finnair Lufthansa Air France KLM
7
12
7 7
Finnair Lufthansa Air France KLM
Singapore
• *Finnair is the 3rd largest carrier in its destinations, estimated market share of 5.9%. Winter schedule.• Market size of 20 million transfer passengers annually, globally one of the fastest growing traffic areas. • Traffic between Europe and China forecasted to triple during the next 30 years.
Air traffic remains a growth market
Finnair Capital Market Day, 3 Dec 20126
Source: Airbus Global market forecast September 2012.
20-year world annual traffic growth
4.7%
Global ASK traffic now growing at a slower pace after a strong recovery in 2010
Finnair Capital Market Day, 3 Dec 20127
Source: Airbus Global market forecast September 2012.
Growth is highest in expanding regions...
Finnair Capital Market Day, 3 Dec 20128
Source: Airbus Global market forecast September 2012.
ChinaIndiaMiddle EastAsiaAfricaCISLatin AmericaEastern Europe
EX
PA
ND
ING
R
EG
ION
S 6billion people
2012
Yearly RPK growth2012 -2031
Western EuropeJapanNorth America
1billionpeople2012
Billions of people increasingly want to travel by air
...following strong economic growth in theseareas – China is forecasted to continue as the fastest growing market in 2012-2013
Finnair Capital Market Day, 3 Dec 20129
Source: Airbus Global market forecast September 2012.
Main drivers for traffic growth in Asia
• More people, bigger cities, more wealth
• Emerging markets, more first time flyers and growing middle class
• Growing tourism and internationalisation will stimulate demand
• China average propensity to travel x4.6 in 2031 vs. 2011
Finnair Capital Market Day, 3 Dec 201210
Source: Airbus Global market forecast September 2012.
Change in the industry continues
• Alliance landscape is changing– Qatar to join oneworld alliance, Middle-Eastern airlines active in
partnering with legacy carriers
• Market exits in short haul traffic
• Legacy carriers continue to restructure their loss-making short haul operations
Finnair Capital Market Day, 3 Dec 201211
Finnair today
• Focus on core Airline business– Scheduled long and short haul traffic– Leisure traffic– Cargo traffic
• Partnerships in both corebusiness and in airline supportservices
Finnair Capital Market Day, 3 Dec 201212
51%
32%
5%5%
7%
Passenger Revenue splitin Q3 2012
Asia EuropeDomestic North AtlaticCharter
We are committed to adding value and increasing profitability
• Product development, for example:– Investments in Customer Service – Peace of Mind– Better meals through partnership– New ticket types– Marimekko partnership etc.
• Improved operational efficiency• Cutting costs and changing cost structure• Increasing revenues
Finnair Capital Market Day, 3 Dec 201213
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