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Is IAG The Next Step For Finnair?  
User currently offlineLufthansa From Christmas Island, joined May 1999, 3224 posts, RR: 10
Posted (2 years 1 month 1 week 3 days 23 hours ago) and read 1589 times:

I have been following recent developments at Norwegian and it looks highly likely,
that it is going to pick up the traffic that SAS has long been neglecting out of both ARN and OSL to Asia. Of course Finnair has benefited greatly from SAS's lack of getting their act together which got me thinking, Finnair has a lot to lose by Norwegian having any serious asian presence ex ARN.

So that got me thinking, what is the next step for Finnair? They have a good hub, how do they defend it? And the best Answer I could come up with was become part of the IAG group, and strengthen their operations deeper inside europe and make HEL the primary gateway for Asian traffic outside the huge london market. They could quickly reconfigure and transfer some BA 744s on key routes, or get upgage to the 77W if they had greater feed to get their CASM and with some product improvements, that would give IAG group a very good way to combat the middle east factor. IE - one stop avoiding the congested LHR from everywhere from Scottland to italy to spain to just about anywhere in Asia with a quick layover in HEL. HEL of course has heaps of room to expand and unlike MAD is perfectly located for Asia flights. They would probably need to see soft product upgrade in J to appeal to a greater European market (one that expects more luxuries etc than Scandinavians generally do), and at the same time this would enable them, by operating larger aircraft to get their CASM right down. Or Increase A330 frequencies. Or both. It would boost its competitiveness with Lufthansa and KLM on these kinds of flights and probably increase the percentage of business travellers on Finnair which should help increase yields. What's does everybody think?

4 replies: All unread, jump to last
 
User currently offlineQANTASvJet From United Kingdom, joined Sep 2012, 81 posts, RR: 0
Reply 1, posted (2 years 1 month 1 week 3 days 21 hours ago) and read 1593 times:

My guess is that Finnair are at the top of IAG's shopping list. The problem is that the list is probably torn-up and lying on the floor. Heathrow as a North Atlantic hub, Madrid as a South Atlantic/Africa hub and Helsinki as an Asia hub makes a lot of sense. But if you cant feed these 3 with an integrated internal pan-European network that at least washes it face, rather than bleeding cash, then none of it works.

User currently offlineteme82 From Finland, joined Mar 2007, 1637 posts, RR: 0
Reply 2, posted (2 years 1 month 1 week 3 days 21 hours ago) and read 1593 times:
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There is the issue of the Finnish private shareholders that aren't keen to see and clearly don't got a clue how airline industry works. I've been share holder of AY for long time now and there is always a bunch of people asking stupid questions in the annual general meeting. Anyways if IAG wants to buy AY they need to talk to our Government. They have the majority of the shares. And to sell those shares they need permission from our parliament. So it's not a easy task.

ps. Me wants 2:1 exchange ratio in shares if IAG is going to buy AY  



Flying high and low
User currently offlineFI642 From Monaco, joined Mar 2005, 1079 posts, RR: 2
Reply 3, posted (2 years 1 month 1 week 13 hours ago) and read 1591 times:

Quoting teme82 (Reply 2):
ps. Me wants 2:1 exchange ratio in shares if IAG is going to buy AY

Value for your investment!

It will be interesting to see how this pans out!



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User currently offlineteme82 From Finland, joined Mar 2007, 1637 posts, RR: 0
Reply 4, posted (2 years 1 month 1 week 10 hours ago) and read 1591 times:
Support Airliners.net - become a First Class Member!

Quoting FI642 (Reply 3):

Value for your investment!

It will be interesting to see how this pans out!

Yeah! I'm not so greed. If I would I would have 10:1 exchange ratio  



Flying high and low
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