Lufthansa
Topic Author
Posts: 2306
Joined: Thu May 20, 1999 6:04 am

Is IAG The Next Step For Finnair?

Fri Nov 09, 2012 7:53 am

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?
 
QANTASvJet
Posts: 81
Joined: Mon Sep 24, 2012 11:25 pm

RE: Is IAG The Next Step For Finnair?

Fri Nov 09, 2012 9:37 am

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.
 
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teme82
Posts: 1216
Joined: Fri Mar 23, 2007 6:38 am

RE: Is IAG The Next Step For Finnair?

Fri Nov 09, 2012 9:45 am

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
 
FI642
Posts: 992
Joined: Sat Mar 12, 2005 9:48 am

RE: Is IAG The Next Step For Finnair?

Mon Nov 12, 2012 5:55 pm

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!
737MAX, Cool Planes for the Worlds Coolest Airline.
 
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teme82
Posts: 1216
Joined: Fri Mar 23, 2007 6:38 am

RE: Is IAG The Next Step For Finnair?

Mon Nov 12, 2012 8:12 pm

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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