Home News Finland should cut Finnair stake, minister says

Finland should cut Finnair stake, minister says

0
SHARE

Airline needs to make partnerships to fight competition

Finland’s minister responsible for state ownership of companies, Heidi Hautala, says she wants the country’s complicated six-party coalition government to agree in the coming months to cut its 55.8% stake in Finnair to below 50%. This would, she explained, give the airline freedom to create the partnerships it needs to battle competition from low-cost carriers.
“State-owned airlines have, one after another, ended up in very difficult situations,” she said. “Finnair must find new partnerships that could enable it operate in a more efficient way.”
Finnair has been cutting costs, focusing on profitable long-haul flights to Asia and recently gave operation of a third of its European routes to the low-cost airline Flybe. As a consequence, it says, it will probably become profitable again this year for the first time in four years.
Reuters
[photo courtesy Finnair]

LEAVE A REPLY

Please enter your comment!
Please enter your name here