Iksu
Posts: 23
Joined: Tue Nov 29, 2011 10:25 am

Finnair Joins Tatl JV With AA/BA/IB

Thu Mar 07, 2013 7:50 pm

Hi,

I think this is really significant for Finnair as currently they have only their own HEL-JFK route and by the end of the year it will be over 100 trans Atlantic flights with AY flight number with joint venture partners! After all the focus into Asia I see this as an excellent way to move forward into west and not only east. It's great to see this kind of cooperation and I only wonder if AY will have even deeper bonds with IAG in the future?

Quote from the press release:

American Airlines, British Airways and Iberia celebrate a key milestone today as fellow oneworld® alliance member Finnair announces its intent to join the transatlantic joint business, established by the three airlines in October 2010.

Once Finnair joins the transatlantic joint business later this year, customers in North America and Europe will have increased choice of flights and services as well as more convenient connections to flights across the Atlantic.

Link to press release:

https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=545229&lang=en

What do you think?
 
okay
Posts: 604
Joined: Tue Dec 12, 2006 10:11 pm

RE: Finnair Joins Tatl JV With AA/BA/IB

Thu Mar 07, 2013 7:58 pm

Maybe this thread will last  
Quoting iksu (Thread starter):
I only wonder if AY will have even deeper bonds with IAG in the future?

If one is to believe that no small airlines of Europe will survive and AY will be bought by one of the big names, I'd put my bet on IAG.
 
Iksu
Posts: 23
Joined: Tue Nov 29, 2011 10:25 am

RE: Finnair Joins Tatl JV With AA/BA/IB

Thu Mar 07, 2013 8:01 pm

I find it interesting that this happened now when the government after so many years of not wanting to sell AY stocks, have recently been talking about selling stocks for AY to find a partner   Just my personal conspiracy theory  
 
toobz
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Joined: Mon Jan 18, 2010 6:33 am

RE: Finnair Joins Tatl JV With AA/BA/IB

Thu Mar 07, 2013 8:52 pm

Very interesting! So how does this work? AY doesn't have that many flights of its own. AY gets 100 new flight numbers..what does IAG get in return but a a handful of Asian flights??
 
GCT64
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RE: Finnair Joins Tatl JV With AA/BA/IB

Thu Mar 07, 2013 10:28 pm

As the JV means joint sharing of profits and losses (based presumably on the proportion of the business that they are responsible for) then it means:

A. Finnair will only be exposed to a small part of the P&L on its own flight(s).
B. Finnair will benefit (in a very small percentage) from the totality of AA/BA/IB/AY TATL profits or lose (in a very small percentage) if the totality of AA/BA/IB/AY TATL makes a loss.

Essentially they are moving their risk/exposure from being focused on the P&L of their own flight(s) and spreading that risk thinly across the whole of the JV's TATL flights.

The positive/negative effect on IAG and AA will be negligible.

But I think the bigger message, as noted above, is "expect IAG to buy/try to buy AY"
Flown in: A30B,A306,A310,A319,A320,A321,A332,A333,A343,A346,A359,A388,BA11,BU31,B190,(..54 more types..),VC10,WESX
 
toobz
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Joined: Mon Jan 18, 2010 6:33 am

RE: Finnair Joins Tatl JV With AA/BA/IB

Fri Mar 08, 2013 8:06 am

Thanks for explaining that GCT!
 
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teme82
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RE: Finnair Joins Tatl JV With AA/BA/IB

Fri Mar 08, 2013 11:38 am

Quoting GCT64 (Reply 4):
But I think the bigger message, as noted above, is "expect IAG to buy/try to buy AY"

The only problem is the government. They can't sell the shares at the moment.
Flying high and low
 
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HELyes
Posts: 1238
Joined: Mon Oct 25, 2010 4:26 am

RE: Finnair Joins Tatl JV With AA/BA/IB

Fri Mar 08, 2013 3:13 pm

Quoting teme82 (Reply 6):
Quoting GCT64 (Reply 4):
But I think the bigger message, as noted above, is "expect IAG to buy/try to buy AY"
Quoting teme82 (Reply 6):

The only problem is the government. They can't sell the shares at the moment.

Government is ready to give up its majority holding, according to minister Heidi Hautala, timing is an other question.