2011-04-28 08:00:00 CEST
2011-04-28 08:00:13 CEST
REGULATED INFORMATION
Finnair Oyj - Interim report (Q1 and Q3)
FINNAIR GROUP INTERIM REPORT JANUARY 1 - MARCH 31, 2011
Turnover up 10.8%, operating result down due to higher fuel prices and the
disaster in Japan
Finnair Plc. Interim Report April 28, 2011 AT 0900
Key figures
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Q1 Q1 Change
2011 2010 %
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Turnover and result
--------------------------------------------------------------------------------
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Turnover EUR 533,7 481,5 10,8
million
Operational result, EBIT EUR -43,1 -26,3 63,9
million
Operational result, EBIT % turnover % -8,1 -5,5
Operating result, EBIT EUR -43,1 -25,9 66,4
million
EBITDAR EUR 3,6 20,0 -82,0
million
Result before taxes EUR -46,2 -29,4 57,1
million
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Balance sheet and cash flow
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Equity ratio % 34,7 34,6
Gearing % 30,0 30,2
Adjusted gearing % 80,6 91,9
Capital expenditure, CAPEX EUR 30,9 68,7 -55,0
million
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Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Share price at end of quarter EUR 3,84 4,35 -11,7
Earnings per share EUR -0,28 -0,19 47,4
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Traffic data, unit costs and revenue
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Passengers 1,000 1 885 1 839 2,5
Available seat kilometres, ASK million 7 353 6 560 12,1
Revenue passenger kilometres, RPK million 5 339 5 251 1,7
Passenger load factor, PLF % 72,6 80,0
Unit revenue per available seat kilometre, cents/ASK 5,54 5,61 -1,3
RASK
Unit revenue per revenue passenger cents/RPK 6,78 6,30 7,6
kilometre, yield
Unit cost per available seat kilometre, cents/ASK 6,38 6,39 -0,1
CASK
CASK excluding fuel cents/ASK 4,69 4,82 -2,5
Available tonne kilometres, ATK million 1 133 940 20,5
Revenue tonne kilometres, RTK million 688 618 11,4
Cargo and mail tonnes 34 447 24 958 38,0
Cargo traffic revenue per available tonne cents/RTK 26,29 23,61 11,3
kilometre
Overall load factor % 60,7 65,7
Flights 20 530 19 267 6,6
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Personnel
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Average number of employees 7 470 7 681 -2,7
CEO Mika Vehviläinen on Q1:
Finnair air traffic volume grew significantly, particularly on Asian and North
American long-haul flights. There is once again overcapacity in the industry,
as our competitors, like Finnair, prepare for expected growth in traffic. Our
overall load factor was therefore significantly lower than in Q1 in 2010.
Our cost burden increased sharply due to a substantial and rapid rise in oil
prices, although we have otherwise succeeded in cost control fairly well. In
the current demand situation, we have not been able to transfer the fuel price
increase as such into flight ticket prices despite the positive yield
development.
The devastating disaster in Japan in March had a negative impact on our result,
as travel to the country fell dramatically. Finnair has, however, continued
daily flights to Japan, which we believe will benefit us in the long term.
We have determinedly continued to implement our Asian strategy and we are
currently preparing for the opening of our new route to Singapore. Alongside
the development of long-haul traffic, we are working to improve the
cost-efficiency of feeder traffic.
We have to work hard to turn the growth enabled by our strategy into
profitability. This will require the continuous enhancement of our operations,
the development of our route network and strategy and the re-evaluation of
structural solutions in the Finnair Group.
Our operations will be enhanced, for example, by investing in process and
automation development and by cutting overlapping activities. In feeder
traffic, our goal is to improve profitability through, among other things,
partnership arrangements. For example, in Finncomm Airlines' partnership
arrangements we are seeking a solution in which Finnair, in cooperation with
its partners, would create a cost-efficient production platform for certain
feeder traffic routes.
In addition, we have to determine what are our core businesses and in which
areas we could benefit from alternative solutions. One such area is our
Catering unit, where we plan to evaluate different further development
alternatives of these operations.
Business environment and development of Finnair's flight operations
The beginning of 2011 saw a sharp rise in fuel prices and increased flight
capacity. The airline industry is preparing for expected growth, which has
resulted in overcapacity in the market and intense competition. Nevertheless,
the price level, unit revenue per revenue passenger kilometre, improved
compared with the corresponding period of the previous year. Due to the market
situation, the company has not been able to transfer the oil price rise into
flight ticket prices during the seasonally weak first quarter. Excluding fuel,
Finnair's costs have developed according to expectations. As fuel costs account
for over a fifth of total costs, however, their rise had a significant impact
on the company's operating loss in the first quarter. Finnair's fuel hedging
worked well in the first quarter. Finnair adheres to a conservative fuel price
hedging policy and its hedging ratio in April-June is 77%.
Finnair's turnover increased by 52.2 million euros compared with the
corresponding period of the previous year. Asian traffic developed particularly
positively, with revenue growing 23% compared with the corresponding period
last year. The company has increased its capacity in Asian traffic in line with
its strategy and it is continuing to evaluate further opportunities for
expansion. In May, Finnair will begin daily direct flights to Singapore, which
is expected to improve the company's load factor when aircraft introduced at
the turn of the year are transferred to this route.
Since mid-March, Asian traffic has been affected by the devastating disaster in
Japan, as a consequence of which demand from Europe to Japan in particular has
fallen significantly. Finnair has continued to operate its daily flights to
Japan, however. The company expects travel to Japan to recover longer term when
reconstruction gets fully under way. Reconstruction is expected to have a
positive impact, particularly on business travel to Japan.
Finnair's profitability deteriorated and its operating result was a loss of
43.1 million euros, compared with a loss of 26.3 million euros in the
corresponding period last year. The company has continued efficiency measures,
as a result of which operating costs, excluding fuel, remained on the target
level and were 448.0 million euros, compared with 405.8 million euros in the
corresponding period last year. Unit costs, excluding fuel, fell by 2.5%
compared with the previous year.
In January 2011, employee consultations were initiated in the Finnair Technical
Services companies, with the objective of reducing personnel by 450 people. The
first-quarter results include a non-recurring personnel expense item of 18.4
million euros for the restructuring of Technical Services.
While Finnair's focus is on Asia-Europe traffic, the company is striving to
develop alternative production platforms for European and domestic feeder
traffic to reduce unit costs and increase flexibility. In the second quarter of
the year, Finnair aims to finalise Finncomm Airlines' negotiations in
cooperation with an industrial partner. To improve the cost-efficiency of the
company's own feeder traffic, the cabin configurations of the Airbus A32S fleet
(incl. A319 and A320 aircraft) will be retrofitted. This modification work will
begin in the second quarter of 2011. The retrofitted configurations will reduce
unit costs and bring increased capacity while maintaining passenger comfort. In
addition, the company will strive to further improve the utilisation efficiency
of its narrow-body fleet through cross-utilisation of resources in scheduled
and leisure traffic.
Cargo demand continued to develop positively, and Finnair Cargo's turnover grew
57% compared with the corresponding period last year. In March, Finnair and
Neff Capital Management LLC announced their intention to establish a cargo
traffic joint venture, Nordic Global Airlines Ltd (NGA), which will begin cargo
traffic with MD11 aircraft after the necessary licences have been obtained.
The Group has a number of process development activities under way to improve
cost-efficiency. With respect to the lowering of unit costs, purchasing
activity is one of the key development areas. A new head of purchasing will
start in his position in the second quarter.
The company has continued the identity renewal announced in the final quarter
of 2010. One of its key areas is the renewal of service identity, practical
measures towards which were begun in the first quarter of 2011 and were well
received. Finnair's goal is to create added value through customer service and
thereby achieve a competitive advantage over its key competitors. To achieve
this ambitious goal, the company will implement a substantial service training
programme during 2011.
Key Factors and Risks
Finnair's results are mainly affected by, in addition to operational activity,
the development of the market price of oil, because fuel purchases are one of
the largest cost items alongside personnel costs, accounting for over 20% of
total costs. The result is also affected by exchange-rate fluctuations of the
US dollar and the Japanese yen. Due to strong Japanese business, the yen is a
significant revenue currency for Finnair, and fuel costs, on the other hand,
are linked to the dollar.
Finnair operations are associated with a number of strategic, economic and
operational risks, and these have been comprehensively outlined in the 2010
Annual Review and consolidated financial statements
http://www.finnairgroup.com/investors/investors_9.html
Due to the short booking horizon in passenger and cargo traffic, long-term
forecasting is difficult. The situation in Japan will continue to adversely
affect turnover in the second quarter and it is difficult to forecast when
demand will return to pre-earthquake levels and continue its earlier positive
trend.
In March 2011, Finnair became one of the first airlines to deliver to the
authorities certified Tonne kilometer and emissions reports for 2010. The
company has prepared for emissions trading, but preparations have been
adversely affected by the fact that the proportion of emissions rights to be
allocated free to individual airlines will not be known until autumn 2011 at
the earliest.
Moreover, passing on emissions trading costs into prices will be difficult as
emissions trading will not apply to all international airlines equally, which
will distort competition. This results from EU's unilateral commitment to
emissions trading.
Outlook for 2011
Finnair expects that the second-quarter result will be negative.
Therefore the company continues to expect that it will be unable to achieve a
positive result in 2011 unless there is a substantial improvement towards the
end of the year in the oil price trend and in the situation in Japan. At the
same time, the company expects that the results of the second half of the year
will be positive.
Finnair continues to expect that its turnover will grow by more than 10% in the
full year.
Finnair will continue measures aimed at restoring operational profitability and
will explore new means of increasing cost-efficiency.
Financial Result, January 1 - March 31, 2011
In January-March, the Finnair Group's turnover was 533.7 million euros (481.5
in the corresponding period the previous year), which is 10.8% higher than the
previous year. The Group's operational result, i.e. EBIT excluding
non-recurring items, capital gains and changes in the fair value of derivatives
and maintenance currency changes, was a loss of 43.1 million euros (26.3 loss).
The result before taxes was a loss of 46.2 million euros (29.4 loss).
Changes in the fair value of derivatives had a 14.4 million euro positive
effect on the result reported for the first three months. The corresponding
item in the previous year had a positive effect on the result of 0.4 million
euros.
A weakening of the US dollar in relation to the euro is positive for Finnair,
but owing to a high degree of hedging the impact on the operational result in
first quarter was not significant. At the end of March, the degree of hedging
for a dollar basket over the following 12 months was 68%.
In the first quarter, euro-denominated operating costs were 580.8 million euros
(511.1). Fuel costs, including price hedging, rose by 26.1%. The company's
personnel costs were 116.8 million euros (111.9). Fleet material purchases,
maintenance costs and depreciation totalled 60.2 million euros (56.0). The
company's result included an 18.4 million euro non-recurring personnel expense
item for the restructuring of the Technical Services unit.
Net cash flow from operating activities in the review period was -38.0 million
euros (-17.9).
Return on capital employed (ROCE) for the last 12 months was -1.5% (-8.3) and
return on equity was -4.2% (-13.4). Earnings per share in January-March were
-0.28 euros (-0.19).
Balance Sheet
The Group's balance sheet total at the end of March was 2,481.4 million euros
(2,438.2). At the end of the reporting period, shareholders' equity totalled
849.6 million euros (832.1). Equity attributable to owners of the parent on
March 31 was 849.0 million euros (831.2), i.e. 6.65 euros per share.
Shareholders' equity includes a fair value fund related to hedge accounting,
the value of which is affected by changes in the oil price and foreign exchange
rates. The size of the item on the closing date was 65.6 million euros, after
deferred taxes, and it includes foreign exchange and fuel derivatives as well
as, to lesser degree, other items (1.8).
A change in value of Norwegian Air Shuttle ASA shares in January-March had a
negative impact on Finnair's shareholders' equity of around 1.6 million euros
after deferred taxes. Finnair owns around 5% of Norwegian's shares.
Cash flow and Financing
Net cash flow from operating activities in January-March was -38.0 million
euros (-17.9). Cash flow before financing activities was 31.7 million euros
(179.2). Financial expenses in the first quarter totalled 6.3 million euros
(6.0) and financial income 3.1 million euros (2.5).
Advance payments related to fixed asset investments were 31.4 million euros
(51.4). On March 31, interest-bearing debt was 742.6 million euros (774.6). The
equity ratio was 34.7% (34.6) gearing 30.0% (30.2). Adjusted gearing was 80.6%
(91.9).
The Group's liquidity remained good. The Group has an option for a loan-back of
employment pension fund reserves amounting to 380 million euros. The use of
this option requires bank security. In addition, Finnair renewed in June 2010
for three years a 2010 million euro syndicated credit facility, intended as
reserve financing, which has not been used to date. Financial flexibility is
also achieved through a 200 million euro short-term commercial paper programme,
which at the closing date was completely unused.
Capital expenditure
In January-March, the Finnair Group's total investment, excluding advance
payments, totalled 30.9 million euros (68.7). Total investment in 2011 is
expected to be around 70 million euros. Fleet investments account for around 23
million euros (27.5) of total investment.
Fleet
The Finnair Group's fleet is managed by Finnair Aircraft Finance, a
wholly-owned subsidiary of Finnair Plc. At the end of March, the Finnair Group
had a total of 65 aircraft in flight operations. The average age of Finnair's
entire fleet is just over seven years.
In the first quarter, a second Airbus A340 wide-bodied aircraft from Air France
joined the Finnair fleet. The first aircraft was received at the beginning of
December 2010 and it entered service at the end of the year. The narrow-bodied
fleet was supplemented by one Embraer 190 aircraft. In addition, one MD11 and
one Embraer 170 aircraft were sold during the review period. One Embraer E190
aircraft will be received during the second quarter. No aircraft deliveries are
planned for the latter part of the year.
Business Area Development
The segment reporting of the Finnair Group's financial statements is based on
business areas. The reporting business areas are Airline Business, Aviation
Services and Travel Services.
Airline Business
This business area is responsible for scheduled passenger and charter traffic
as well as cargo sales, customer service and service concepts, flight
operations and activity connected with the procurement and financing of
aircraft. The Airline Business segment comprises the Sales & Marketing,
Operations, Customer Service and Resources Management functions as well as the
subsidiaries Finnair Cargo Oy, Finnair Cargo Terminal Operations Oy, Finnair
Aircraft Finance Oy and Finnair Flight Academy Oy.
Key figures
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Q1 2011 Q1 2010 Change %
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Turnover and result
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Turnover EUR million 452.3 403.2 12.2
Operational result, % turnover % -9.7 -6.1
Operational result, EBIT EUR million -43.9 -24.6 78.5
Personnel
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-----------------------------------------------------------------------
Average number of employees 3 505 3 600 -2.6
Passenger traffic
The average price weighted by passenger kilometres flown (RPK) rose in the
first quarter by slightly over 8%. Development was positive in all types of
traffic. The fastest growth was in Asia.
Total capacity grew more than demand in the key market areas during the first
quarter, which adversely affected Finnair's load factor. Load factors for Asian
passenger traffic in March were also adversely affected by the natural disaster
in Japan and its after-effects. The first-quarter passenger load factor fell by
eight percentage points.
Despite the rise in average price, poorer load factors led to a 1.3% fall in
unit revenue per available seat kilometre (RASK).
Corporate sales developed favourably in the first quarter, growing by 19%
compared with the corresponding quarter the previous year. Growth was mainly in
sales outside of Finland which grew by 43%. Corporate sales in Finland grew by
7%. Corporate sales grew most strongly in Japan, Hong Kong, Sweden, Norway and
Germany. Global corporate sales accounted for 26% of total scheduled traffic
sales and grew by 2.1% compared with the corresponding period last year.
In January-March, Finnair's charter flights carried approximately 230,100
passengers, which is 8.2% less than during the corresponding period of the
previous year. This was due to unrest in Egypt, Tunisia and Libya, which led to
the almost complete cancellation of leisure traffic to Egypt and Tunisia at the
end of the season. It was possible to redirect released capacity only partly to
other destinations. The passenger load factor of charter flights fell slightly
to 91.5%.
Finnair's market share increased compared with its main competitors in
scheduled traffic between Asia and Europe, and its market share on operated
route pairs was 5.4% (5.2). In terms of market share, Finnair is the sixth
largest network airline in this market. Finnair's share in terms of flights
departing from Finland is around 54%.
The arrival punctuality of flights improved from the corresponding period the
previous year by nearly 10 percentage points to 80.6% (71.4).
Cargo
In cargo operations, earnings continued to develop strongly in January-March.
Cargo's turnover grew by 57% in the first quarter. Nevertheless the situation
in Japan, the Middle East and North Africa slowed growth in cargo demand. Cargo
growth figures were positively affected by traffic growth between Europe and
Asia and also by the freighter service initiated last spring. Available tonne
kilometres grew by 62.4%. Sales also grew significantly, but demand in the
early part of the year is seasonally lower due to the Chinese New Year. Revenue
tonne kilometres grew by 42.5%.
Cargo unit revenue, excluding freighter revenue, grew by 5.5% per available
tonne kilometre. The amount of cargo and mail carried grew by 38%. Overall load
factor fell by 8.7%. The first quarter was weaker than expected due to the
situation in Japan and the Middle East, and as a result it was not possible to
fully utilise a significant increase of capacity.
The establishment of a new cargo aircraft company, Nordic Global Airlines Ltd
(NGA), in which Finnair is a minority shareholder, has proceeded well in
January-March. Finnair's goal is to invest in business growth areas in line
with its previously announced plan and strategy.
Flight Training
Demand for flight training is growing. The Finnair Flight Academy's (FIFA)
flight simulators operated at high utilisation rates in January-March.
Approximately half of customers are non-Finnair airlines.
Air Traffic Services and Products
The summer season began in Finnair's flight traffic on March 27, 2011. This
summer, Finnair will fly to Asia with a record number of 74 flights per week to
10 cities. Finnair offers the fastest connections in traffic between Europe and
Asia, with more than 200 route pairs. A new destination, Singapore, opens in
May and will be served by daily flights. In June, Finnair will add flights to
its Hong Kong route. A direct service to Chicago from Helsinki will also open,
when oneworld partner American Airlines starts operating on the new route at
the beginning of May.
Finnair and its oneworld alliance partner, the Australian airline Qantas, began
cooperation flights from Helsinki to Sydney via Bangkok in February.
Cooperation flights from Helsinki to Melbourne, Brisbane, Perth, Adelaide and
Sydney via Singapore will begin in May, when Finnair begins its daily service
to Singapore.
The previous leisure flights to Malaga and Toronto change in the summer season
to scheduled flights, and they are flown five days a week. Another leisure
flight service, to Nice in France, also changes to a scheduled service,
operating three times per week. In addition, Finnair opened a new direct
afternoon flight to Aarhuus in Denmark in cooperation with Sun-Air. There are
four flights per week to Ljubljana in Slovenia and a daily connection to Gdansk
in Poland. The Polish route is operated in cooperation with Finncomm Airlines,
and the intention is continue the flights during the winter season, too. There
is a service to Krakow twice per week and to Venice three times per week from
March 31. On April 17, the Stuttgart service grew to two daily flights instead
of the earlier 10 flights per week. Lisbon is served by three scheduled flights
per week from April 18. On May 13, a scheduled service of two flights per week
will begin to Pisa. A service to Bergen in Norway via Arlanda will be operated
with three flights per week from May 22. During the summer season, Finnair will
fly three times per week from June 15 to a new destination, Murmansk in the
Northern Russia.
Finnair has continued its daily flights to Japan and has transported
humanitarian aid on its flights. In addition Finnair offers its customers the
opportunity to donate their Finnair Plus points to the Finnish Red Cross to
assist the disaster relief effort in Japan.
At the beginning of the year, Finnair launched onto the market, in cooperation
with Diners Club Finland, a new kind of credit card, combining a Finnair Plus
membership card and a Diners Club credit card. The link allows Finnair Plus
members to accumulated points more quickly with daily purchases, thereby
enabling membership benefits to be achieved more easily.
In March, Finnair launched for mobile phone users a service environment which
gathers together travel-related services, guidelines and tips. The service
environment can be found at the address m.finnair.com.
Aviation Services
This business area comprises aircraft maintenance services, ground handling and
the Group's catering operations. In addition, most of the Group's property
holdings, the procurement of office services, and the management and
maintenance of properties related to the Group's operational activities also
belong to the Aviation Services business area. Aviation Services' business
consists mainly of intra-Group service provision. Of the business area's
turnover, one quarter comes from business outside of the Group.
Key figures
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Q1 2011 Q1 2010 Change %
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Turnover and result
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Turnover EUR million 114.5 110.7 3.4
Operational result, % turnover % 2.4 1.4
Operational result, EBIT EUR million 2.8 1.6 75.0
Personnel
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Average number of employees 2 646 2 679 -1.2
Catering business is the most profitable of the Aviation Services. Operations
are divided into meal production and related logistics as well as travel retail
functions, which include inflight sales, preorder services as well as airport
shops in Helsinki, Tampere and Turku.
Catering's turnover declined from the corresponding period of the previous year
by 2.6%, mainly due to changes in airline customer concepts and the
refurbishment of Finnair Tax Free Shop's main outlet. An expanded Finnair Plus
Tax Free Shop was opened in March 2011 in Helsinki-Vantaa Airport's Terminal 2.
The operational result developed inline with the turnover decline. However,
Finnair Catering managed to adjust its cost structure to the turnover decline.
Finnair Technical Services' results were close to break even in the first
quarter. The Technical Services unit is undergoing a restructuring, as the
company has decided to discontinue the heavily loss-making aircraft base
maintenance service offered to external customers. Service provision will in
future be focused on line maintenance of the company's own aircraft. Employee
consultations within Finnair Technical Services were completed at the end of
March. A reduction of around 450 jobs will be implemented by the end of the
year. As part of the restructuring, Finnair Technical Services Oy and Finland
Transval Oy have signed a letter of intent on a possible transfer of business
of Finnair Technical Services' Helsinki-Vantaa warehouse services. Around 75
people work in these warehouse operations.
Northport Oy, which provides ground handling services, came close to break even
in January-March.
Travel Services (tour operators and travel agencies)
This business area consists of the tour operator Aurinkomatkat-Suntours and its
subsidiaries operating in Estonia and Russia, and also as the business travel
agencies Matkatoimisto Area and Finland Travel Bureau (FTB) and FTB's
subsidiary Estravel, which operates in the Baltic countries. Amadeus Finland
produces travel sector software and solutions. Aurinkomatkat focuses on serving
leisure travellers, offering customers a full range of leisure travel services
in addition to package tours. The leisure travel operations of Area and FTB
were merged into Aurinkomatkat in December 2010. Area and FTB are nowadays
purely business travel agencies.
Key figures
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Q1 2011 Q1 2010 Change %
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Turnover and result
-----------------------------------------------------------------------
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Turnover EUR million 106.6 100.1 6.5
Operational result, % turnover % 1.0 0.4
Operational result, EBIT EUR million 1.1 0.4
Personnel
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Average number of employees 1 025 1 164 -11.9
Demand for winter package tours picked up after the economic downturn.
Aurinkomatkat sales grew in Finland by 10% and in Russia and Estonia even more
strongly. Due to unrest in the Middle East, flight series to Tunisia and Egypt
were interrupted in February. Aurinkomatkat was able to arrange replacement
holiday packages to some of the customers, but thousands of trips were
cancelled, which adversely affected the result.
In the review period, business travel from Finland grew slightly, and in the
Baltic countries significantly, compared with the previous year. Finnair's
business travel agencies increased their market share. Cost-efficiency was
increased by systematic work to increase the proportion of online bookings and
to raise the travel agencies' degree of process automation. Travel agencies'
productivity improved and the result improved significantly into profit.
According to a survey conducted by the Nordic Business Travel Barometer, both
Area and Finland Travel Bureau are among the best in their sector in terms of
the customer satisfaction of Finnish business travellers.
Shares
Finnair's market value on the NASDAQ OMX Helsinki Stock Exchange at the end of
March was 492.0 million euros (557.4) and the closing share price was 3.84
euros (4.35). During the period January-September, the highest price for the
company share was 5.37 euros (4.40), while the lowest price 3.74 euros (3.61)
and the average price 4.66 euros (3.98). Some 4.8 million (4.5) of the
company's shares, with a value of 22.2 million euros (17.8), were traded. The
number of shares recorded in Finnair's Trade Register entry was 128,136,115 at
the end of the year. The Finnish State owned 55.8% (55.8) of Finnair's shares,
while 15.1% (16.3) were held by foreign investors or in the name of a nominee.
On March 31, Finnair held 410,187 of its own shares, representing 0.3% of the
total share capital. In January-March, the company did not acquire nor dispose
of any of its own shares.
Senior Management
During the first quarter 2011 Finnair announced the following changes in its
management team:
-- In January Gregory Kaldahl joined Finnair as Senior Vice President,
Resources Management. He is also a member of the Finnair Executive Board
and Board of Management.
-- Arja Suominen was appointed Senior Vice President, Communications and
Corporate Responsibility, as well as member of Finnair Executive Board and
Board of Management as of March 14, 2011.
-- Christer Haglund, Senior Vice President, Communications, resigned his
position in Finnair on April 15, 2011.
-- As announced earlier, the Finnair Group's Deputy Chief Executive Officer
Lasse Heinonen will leave Finnair on May 15, 2011. Heinonen has been
responsible for Cargo business and Aviation Services, which include the
Group's technical services functions, ground handling and catering
operations. These units will in future report to other members of the
Executive Board.
At the Annual General Meeting held on March 24, 2011, the following former
members were elected as members of Finnair Plc's Board of Directors for a term
lasting until the end of the next Annual General Meeting: Harri Sailas
(Chairman), Elina Björklund, Sigurđur Helgason, Satu Huber, Ursula Ranin, Veli
Sundbäck and Pekka Timonen. In addition, a new member, Harri Kerminen, was
elected.
Finnair Board of Directors extends its warm thanks to Christopher Taxell, who
left his duties as the chairman of the Finnair Board of Directors at the Annual
General Meeting March 24, 2011.
Mr Taxell did valuable work for the good of the company in a difficult operating
environment and during an upheaval in the sector. His significant contribution
in the further development of the company has been undisputable.
Article 8 of the company's Articles of Association concerning the auditor was
amended to read as follows:
“The Company shall have one auditor which shall be an auditing firm certified
by the Finnish Central Chamber of Commerce. The auditor shall be elected by the
Annual General Meeting for a term of office that expires at the end of the
Annual General Meeting following the election.”
In accordance with the new Articles of Association, Authorised Public
Accountants PricewaterhouseCoopers Oy was re-elected auditor of the company.
PricewaterhouseCoopers Oy has notified that APA Eero Suomela will act as the
principal auditor.
Personnel
In January-March the Group had an average of 7,470 employees (7,681). Personnel
were distributed by business area as follows: Airline Business 3,505 (3,600),
Travel Services 1,025 (1,164), and Aviation Services 2,646 (2,679). The total
number of Group employees was 7627 in March 31, 2011.
In April, after the period under review, the company agreed a pay settlement
with Finnair Technical Employees' Association and concluded a year-long
collective agreement with the Finnish Aviation Employees' Association.
Corporate Responsibility
In April 2011, Finnair published its Corporate Responsibility Report for 2010.
The report can be read on the company's website at the address:
http://www.finnairgroup.com/group/group_12_4.html
FINNAIR PLC
Board of Directors
Link to the notes to the financial statement
Press conference
Finnair will have its media briefing at 11 a.m. and analyst briefing at 12.30
p.m. at World Trade Centre, Helsinki-Vantaa Airport, address Lentäjäntie 3, on
April 28, 2011.
Finnair Plc
Communications
Arja Suominen
Senior Vice President, Communications and Corporate Responsibility
For further information, please contact:
Chief Financial Officer
Erno Hildén
telephone +358 9 818 8550, fax +358 9 818 4092
erno.hilden@finnair.com
Senior Vice President, Communications and Corporate Responsibility
Arja Suominen
telephone +358 9 818 4028, fax +358 9 818 4092
arja.suominen@finnair.com
Investor Relations Officer
Kati Kaksonen
Financial Communications and Investor Relationstelephone +358 9 818 2780, fax +358 9 818 4092
kati.kaksonen@finnair.com
Financial reporting later in 2011:
- The interim report for January-June will be published on 5 August 2011- The
interim report for January-September will be published on 27 October 2011
Additional information relating to the interim report can be found on the
Finnair website at the address
http://www.finnairgroup.com/investors/investors_2.html
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