|
|||
2007-04-03 09:49:11 CEST 2007-04-03 09:49:11 CEST REGULATED INFORMATION Finnair Oyj - Company AnnouncementFINNAIR DETERMINES SCHEDULE FOR THE INVESTMENT PROGRAMMEFINNAIR PLC STOCK EXCHANGE RELEASE 3 APRIL 2007 FINNAIR DETERMINES SCHEDULE FOR THE INVESTMENT PROGRAMME Finnair's annual net investment level will be over 300 million euros in the years 2007-2009. The previously announced investment programme of around two billion euros consists primarily of new Airbus wide-bodied aircraft for Asian traffic. The investments also include Embraer aircraft used in European and domestic traffic. The intention is to implement the aircraft acquisitions in the coming years as purchases, but leasing alternatives will also be utilised to an increasing extent in acquisitions at the end of the decade. The main sources of finance for the acquisitions will be internal financing and borrowing. “A growth company's primary ability to fund investments is based on healthy internal financing. The goal of the 80 million euro efficiency programme, which we initiated last year, is a significant improvement in profitability and operational cash flow,” said Chief Financial Officer Lasse Heinonen, at an analysts seminar organised by Finnair in Kuusamo. The investment programme exerts pressure on the balance sheet's key figures. One of the key indicators on Finnair's balance sheet is adjusted gearing, which also takes into account the company's leasing liabilities. “We are exploring opportunities to strengthen our capital structure to ensure the smooth implementation of our extensive investment programme. The main options are a share issue or various forms of mezzanine financing, for example a subordinated debt. In this way, we will clearly remain on the better side of our own limits and those set by our financers,” explained Heinonen. Finnair has ordered ten wide-bodied aircraft, of which four Airbus A340s will be delivered during this and next year. In 2009 four A330 or A340 aircraft will join the Finnair fleet, in 2010 two more. In addition, Finnair has options for four additional aircraft. “The agreement gives us flexibility to develop our long-haul fleet in line with the growth rate of the market. The acquisition programme for new aircraft will allow us to discontinue the use of our present long-haul Boeing MD-11s more quickly. The first of these aircraft will leave Finnair's service at the end of next year, before the start of the winter timetable. During 2009-10 three MD-11 planes will be decommissioned annually,” said Heinonen. Finnair's traffic growth is coming above all from Asia-Europe traffic, which will grow this year by over 30 per cent from last year. Asian traffic growth is also reflected in the development of Finnair's European network. “We have opened new destinations in Europe for the needs of our Asian traffic. Our new European destinations have sold well, and Bucharest, Lisbon and Ljubljana are particularly important,” added SVP Communications Christer Haglund. Finnair Plc Communications 3 April 2007 Further information: Lasse Heinonen, SVP and CFO, tel. +358 50 393 4950 Christer Haglund, SVP Communications, tel. +358 40 555 1007 Taneli Hassinen, Director, Investor Relations, tel. +358 40 504 3321 |
|||
|