Agenda
• Finnair in a nutshell • Finnair operations & ground handling • Ground handling in Helsinki hub • Vision and targets for our hub • Where we are today • Experiences and expectations
3
On blue and white wings since 1923 • Over seven million passengers per year • Turnover two billion euros • 7,600 employees • Over 60 aircraft • Listed in 1989 • Market value 646 million euros • 12,500 shareholders
– Government ownership 55.8 per cent – Foreign ownership 15 per cent
Finnair Group organisation Travel Services
Oy Aurinkomatkat – Suntours Ltd Ab
Horizon Travel
Calypso
Takeoff/Matkayhtymä Oy
Finnair Travel Bureau Ltd (SMT)
A/S Estravel Ltd
Area Travel Agency Ltd
Amadeus Finland Oy
Airline Business
Airline
Finnair Cargo Oy
Finnair Cargo Terminal Operations Oy
Finnair Aircraft Finance Oy
Aviation Services
Finnair Technical Services
Northport Oy (ground handling)
Finnair Catering Oy
Finncatering Oy
Finnair Facilities Management Oy
Finnair´s growth story
• Focus on Europe-Asia traffic • Asian traffic growth was 30 per cent in 2007 and 16.5 per
cent in 2008 • Modern fleet • Financially sound, strong balance sheet
Finnairin kaukoliikenne 2001
New York 7
Tokio 2
Peking 3
Bangkok 4
Finnair’s long-haul traffic in 2001
Singapore 4
Kaukoliikenneverkosto keväällä 2011
Osaka 7 New York 7
Tokyo 7 Nagoya 7
Seoul 7 Beijing 7
Shanghai 7
Hong Kong 12
Bangkok 7
Delhi 7
Long-haul network in 2011
Toronto 4
Singapore 7
The shortest great circle route between Europe and Asia goes via Helsinki (i.e. Mercator is our enemy).
The shortest direct route looks longer on a map projection.
The globe is not flat
Asian capacity has grown rapidly • to China:
2001: 3 weekly flights 2009: 21 weekly flights 2011: 23 weekly flights
• to Japan: 2001: 2 weekly flights 2009: 15 weekly flights 2011: 20 weekly flights
• to India: 2001: 0 weekly flights 2009: 6 weekly flights 2011: 6 weekly flights
2001 2003 2005 2007 2009 2011
Helsinki is always on the way
• Approximately 30 million passengers travel between Europe and Asia.
• The market is growing 6-10% per year. Passenger numbers will double by 2015.
• Via Helsinki is a natural choice if you have to change aircraft, for example from Stockholm, Gothenburg, Oslo, Hamburg, Düsseldorf, Berlin, Stuttgart, Manchester, Tallinn or Krakow.
Ljubljana Pisa
Venetsia
Zürich
Pietari Oslo
Praha
Pariisi
Lontoo
München
Milano
Ateena
Madrid Barcelona
Mallorca
Malaga
Faro
Rovaniemi
Kokkola/Pietarsaari Vaasa
Tampere Turku Helsinki
Seasonal service
Scheduled destinations
Leisure destinations
Tallinna Moskova
Riika
Vilna
Tukholma
Göteborg
Kööpenhamina
Hampuri
Amsterdam
Düsseldorf
Rooma
Hania Heraklion Rodos
Bryssel Varsova
Berliini
Frankfurt
Geneve
Nizza
Wien Budapest
Manchester
Kiova Krakova
Verona
Funchal
Malta
Jerez
Kos
Larnaca Pafos
Las Palmas, Fuerteventura, Lanzarote
Ponta Delgada
European route network
Lissabon
Stuttgart
Insbruck
Teneriffa Enfidha
Rimini
Varna Burgas
Zakinthos
Catania Preveza Korfu Skiathos
Santorini
Antalya Dalaman
In addition, we fly numerous flights in Europe with cooperation partners
Gdansk
Bergen
Jekaterinburg
Ivalo Enontekiö
Kittilä
Rovaniemi Kuusamo
Kemi/Tornio Oulu
Kajaani Kokkola/ Pietarsaari Kuopio
Joensuu
Jyväskylä
Vaasa
Seinäjoki
Pori Tampere
Turku
Savonlinna
Varkaus
Finnair
Finnair & flybe flybe
Domestic route network
Finnair´s Vision 2020
• Finnair's vision is to be – Number one in the Nordic countries – The most desired choice in Asian traffic – Among the top three operators in Asian ’via’ traffic
• Fleet investments and route network development support the growth strategy
• Service offering is based on Finnair’s own high-quality production and also on a network of carefully selected partners
• Doubling our revenue from Asia-Europe
Finnair´s new identity
• A boldly distinctive customer experience – what we are:
Designed for you – how the customer is
encountered: Peace of Mind service identity
– how we act: quality, freshness and creativity
• World class service – Spa & Saunas airport spa – Skytrax ranked Finnair as
Northern Europe's best airline
oneworld – the quality alliance • oneworld has only quality members • Finnair, British Airways, American
Airlines, Iberia, Cathay Pacific, Qantas, LAN, Japan Airlines, Royal Jordanian, Malev, Mexicana, S7 Airlines
• Customers benefit from a global route network, common frequent flyer programmes, lounge services and travel services
• Airlines cut costs through different types of cooperation
A look into the future
• A long-term vision is needed, because the past is history, but we can influence the future
• Flying is an unbeatable form of transport on long journeys
• With a three kilometre runway, you can travel anywhere in the world, but how far with the same length of road or rail?
• www.departure2093.com
Agenda
• Finnair in a nutshell • Finnair operations & ground handling • Ground handling in Helsinki hub • Vision and targets for our hub • Where we are today • Experiences and expectations
HEL GH short history
• Outsourcing of ex Helsinki ground handling and supervision throughout the 2000
• Struggling in finding the right shape and form for Helsinki ground handling
– Helsinki ground handling incorporated early 2000 with target to grow the business to Nordic region
– Dec 2009 Barona took over ramp services from Northport, major quality problems for several months
• Barona proved to be a wrong approach – Labor, quality and contract issues – No real internal process improvement
26. Oktober 2011 20
Agenda
• Finnair in a nutshell • Finnair operations & ground handling • Ground handling in Helsinki hub • Vision and targets for our hub • Where we are today • Experiences and expectations
New approach from 2010
• Target: total ovarhaul of our hub operations
– SmartHub hub management – Search for high quality outsourcing partner in
ramp handling – Customer experience process insourced – Total unit cost approach instead of subsidiary
EBIT approach
New approach from 2010
• Overall target to be the best Asia – Europe hub
– Punctuality – Connection success rate – Baggage reliability – Baggage delivery times – Customer experience – Unit cost of our handling
HEL costs HEL
26.10.2011 This material is for planning purposes only 26
52
54
56
58
60
62
64
66
2010 2011 2012 2013 2014
Total costs in HEL
1050
1100
1150
1200
1250
1300
1350
1400
1450
2010 2011 2012 2013 2014
GH costs HEL DEP
Agenda
• Finnair in a nutshell • Finnair operations & ground handling • Ground handling in Helsinki hub • Vision and targets for our hub • Where we are today • Experiences and expectations
SmartHub
• Five pillars
– Process design – Hub Control Centre – New system support – Common KPI:s & reporting – Set and agreed cross organisational
governance • Airline top priority – steering and involvement from the top
Agenda
• Finnair in a nutshell • Finnair operations & ground handling • Ground handling in Helsinki hub • Vision and targets for our hub • Where we are today • Experiences and expectations
Experiences & expectations
• Hub is the core of your operations - you have to have a very clear vision where to take it
• Hub ground handling is a good candidate for outsourcing • Unlearning is more difficult than learning • Outsourcing problems vs. partnering in solving those • Win – lose is not sustainable • Sprint or marathon
Experiences & expectations
• Good fit in corporate culture • Commitment in creating value for customer • Flexibility in turbulence • Continuous improvement and deployment of best practices • Risk and reward sharing • Integral part of Finnair operations
1. POINT OF DEPARTURE/DESTINATION 2. SEARCHING FOR INFO & BUYING THE TICKET & PLANNING Web / phone / advertising / travel agency / rumours 3. CHECK-IN SMS message 4. ON THE WAY TO THE AIRPORT Taxi / train / bus / car / metro 5. ARRIVAL AT THE AIRPORT Airport 6. CHECK-IN Ground services 7. CHECK-IN Automat 8. BAGGAGE DROP
Ground services 9. SECURITY CHECK Ground services 10. SHOPPING/LOUNGE/SPA Airport Shops, Lounge, Spa 11. PASSPORT CONTROL Border Guard 12. BOARDING THE PLANE Ground services 13. BOARDING IN THE PLANE Cabin Crew 14. BUILDING ONE'S OWN NEST & TAKE-OFF Cabin Crew 15. MEAL Cabin Crew
16. FINISHING THE MEAL Cabin Crew 17. WORK / ENTERTAINMENT / SLEEP / LEARNING Cabin Crew 18. SHOPPING Cabin Crew 19. LANDING AND ABANDONING THE NEST Cabin Crew 20. EXITING THE PLANE Ground services 21A. BAGGAGE CLAIM Arrival service 21B. TRANSFER 22. ON THE WAY TO THE DESTINATION Taxi / train / bus / car / metro 23. FEEDBACK Web / phone / fax / letter
In the end – there is only the end customer we work for