This would help it to focus on profitable long-haul routes
Finnair is reported to be in talks with possible partners to set up a joint venture that will offer a greater variety of regional flights in Scandinavia, at a lower cost. This move would allow it to focus its investment on more profitable long-haul routes to Asia and elsewhere.
CEO Mika Vehvilainen: “The potential joint venture would expand our home base to cover the entire Nordic region. This requires a more cost-competitive business model for our short-haul traffic, and this is what the potential partnership aims at.”
Finnair recently posted a quarterly loss that was bigger than expected. It now wants to cut costs of €80 million in 2012, part of a total of €140 million in cuts by 2014.
[pictured: Airbus A330; courtesy Finnair]