Tag Archives: 6083

Finnair to lease four Airbus A321s, updates its fleet plans, E170s to be retired

Finnair Airbus A321-231 WL OH-LZL (msn 6083) (Sharklets) PMI (Javier Rodriguez). Image: 922730.

Finnair (Helsinki) has entered into a Memorandum of Understanding (MOU) with BOC Aviation Pte Ltd (Singapore) to lease four new Airbus A321-200 narrow-body aircraft.

BOC Aviation is a subsidiary of Bank of China, specializing in aircraft leasing. The aircraft are scheduled for delivery to Finnair during the first half of 2017. The lease agreements have a minimum term of eight years.

The airline continued;

In November, Finnair had announced the temporary damp-lease of two A321 aircraft from summer 2016 onwards. This arrangement is intended to cover the transitional period until the delivery of the four A321 aircraft now dry-leased from BOC Aviation for the longer term.

The transactions are part of Finnair’s fleet renewal, the first phase of which consists of replacing aging long-haul A340 wide-body aircraft with modern A350s. With a view to the growing long-haul traffic, feeder capacity is increased by adding seats to existing narrowbody aircraft and replacing some smaller aircraft with larger ones over the next few years. The A321 is Airbus’ largest narrow-body passenger aircraft, and the Finnair configuration will feature 209 seats.

The sale of four surplus aircraft

In the same context, Finnair sells surplus aircraft in accordance with its fleet plan to various buyers. The agreements or MOUs concern one ATR turboprop aircraft used in regional traffic, and two Embraer E170 regional jet aircraft, which will be retired from Finnair and Norra’s traffic in January-February 2016 and subsequently delivered to the buyers.

In addition, Finnair will sell an old A340 wide-body aircraft for part-out in the first half of 2016.

The sale transactions do not have a significant impact on profit and loss.

Copyright Photo: Javier Rodriguez/AirlinersGallery.com. Airbus A321-231 OH-LZL (msn 6083) lands at Palma de Mallorca.

 

Finnair aircraft slide show: AG Airline Slide Show

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Finnair becomes the first European airline to achieve IATA Environmental Assessment Program certification

Finnair (Helsinki) has issued this statement:

Finnair is the first airline in Europe and one of only two global carriers (South African Airways) to be certified as a Stage 2 operator in IATA Environmental Assessment (IEnvA) program, an environmental management system designed to independently assess and improve an airline’s environmental management.

Finnair has set ambitious environmental performance targets for its operations:

40% reduction of anti-icing fluid usage in 2014–2016.
20% reduction of CO2 emissions in 2009–2017.
10% reduction of energy usage in corporate facilities in 2007–2016.
10% decrease of the non-EU waste/passenger in 2014–2016.
40% noise reduction in 2014–2017.

IEnvA Stage 1 —which Finnair reached in June 2013 along with a small pilot group of other airlines—ensures an airline has developed the foundation and framework for its environmental management system. Stage 1 also certifies an airline has identified and complied with its environmental legal requirements.

IEnvA Stage 2 – This ensures that an airline has implemented all of the IEnvA Program Standards, identified and mitigated its significant environmental impacts and has set performance targets. Stage 2 also certifies that an airline has developed processes for monitoring and reviewing its performance against its targets and objectives, thus driving environmental efficiency.

The environmental standards that underpin IEnvA are based on recognised environmental management system (EMS) principles (such as ISO 14001) and have been developed by a joint team of environmental consultants and airline experts, including some Finnair personnel. Airline assessments—including Finnair’s—are undertaken by independent accredited Environmental Assessment Organisations that have demonstrated competencies in aviation and environmental auditing.

The scope of IEnvA is limited to flight operations and corporate activities, but modules covering ground and MRO operations are currently under development.

IEnvA has been developed in conjunction with airlines so that it addresses industry needs and specific concerns. IEnvA assesses environmental performance against sustainability standards across a broad range of disciplines, including (but not limited to) the management of air quality and emissions, noise, fuel consumption and operational efficiency, recycling, energy efficiency, sustainable procurement, and biofuel utilization. As a result, IEnvA helps airlines to simplify regulatory compliance, demonstrate good governance and achieve financial savings from the better use of resources. IEnvA implementation followed a phased approach due to the complexity and global presence of airlines as well as the number of role players and touch points. There are two implementation phases:

Stage 1:

Stage 1 which ensures an airline has developed the foundation and framework for its environmental management system. Stage 1 also certifies an airline has identified and complied with its environmental legal requirements.

Stage 2:

IEnvA Stage 2 assessment, the highest level of IEnvA achievement, ensures that an airline has implemented all of the IEnvA Program Standards, identified and mitigated its significant environmental impacts and has set performance targets. Stage 2 also certifies that an airline has developed processes for monitoring and reviewing its performance against its targets and objectives, thus driving environmental efficiency.

Copyright Photo: Keith Burton/AirlinersGallery.com. Finnair Airbus A321-231 WL OH-LZL (msn 6083) with the “Official Airline of Santa Claus – Santa Claus Finland” markings arrives in London (Heathrow).

Finnair aircraft slide show:

Finnair celebrates the winter holiday season with a new Santa Claus video

Finnair (Helsinki) besides launching its two Airbus A321s decorated with the image of Santa Claus Finland (as previously reported), continues to celebrate the Christmas and winter holiday season with this new video and this announcement:

Finnair has been the Official Airline of Santa Claus since 1983. This year, two of Finnair’s Airbus 321 Sharklet aircraft take to the skies in Christmas livery (see OH-LZL below). They have already flown to many of Finnair’s European destinations, as well as other destinations such as Dubai.

Finnair A321-200 OH-LZL (14-Santa Claus)(Grd) HEL (Finnair)(LRW)

As a partner of the Santa Claus Foundation, Finnair’s blue and white wings fly Santa to many countries around the world to bring joy to children and adults alike. Santa’s world tour covers China, Japan and Korea, along with several European destinations.

Finnair has also increased its flights to Lapland in the early part of the winter travel season, particularly from Helsinki to Kittilä, Ivalo and Rovaniemi. Flights from these cities and Kuusamo have been scheduled to offer passengers even more convenient connections from Lapland via Helsinki to Europe and Asia.

“Santa Claus is a tremendously important element of Finland’s image in Asia as well as Europe, and Finnair is pleased to support this as the Official Airline of Santa Claus. Additional flights to Lapland give Finnish and international passengers the opportunity to experience Finnish Lapland as a Christmassy and wintry destination,” says Jarkko Konttinen, Vice President, Marketing & Product at Finnair.

The holiday spirit is also reflected on Finnair flights in a special Christmas menu by chef Pekka Terävä. The Christmas menu is served in Business class on long-haul flights from Helsinki between November 26 and December 30. The menu includes Christmas starters such as rainbow trout gravlax, with poached duck and roasted cod as the choices of main course. Mulled wine and gingerbread cookies are also served on flights.

Finnair´s Christmas Menu 2014 by Pekka Terävä (LRW)

Above Photo: Finnair. Finnair´s Christmas Menu designed by Pekka Terävä is served in Business Class on long-haul flights leaving Helsinki between November 26 and December 30, 2014.

Finnair has also launched a new video directed by Finnish writer and director Jalmari Helander featuring Santa Claus and the big secret of Christmas (see above).

Photos: Finnair. Airbus A321-231 OH-LZL (msn 6083) is decorated with the image of Santa Claus Finland and the “Official Airline of Santa Claus” sub-titles.

Video: Finnair: “You know how mysterious it is that Santa can get to every house and home around the world in just 24 hours? Well, we here at Finnair happen to share something with Santa and you seem like someone who can keep a secret. So here we are, ready to open the curtain hiding one of Christmas’s biggest mysteries.”

Video: In Finnish:

Finnair aircraft slide show: AG Slide Show

Finnair A321-200 (14-Santa Claus)(Logo) HEL (Finnair)(LRW)

Finnair decorates two Airbus A321s with Santa Claus, starts a contest for those taking pictures

Finnair A321-200 OH-LZL (14-Santa Claus Finalnd)(Finnair)(LR)

Finnair (Helsinki) took delivery of its new Airbus A321-231 OH-LZL (msn 6083) with Sharklets from Airbus on April 30, 2014. The new airliner along with another A321, has become the canvas for this large “Santa Claus Finland” emblem. The airline has long promoted Santa Claus on its aircraft.

The airline has announced a new contest to fly to Rovaniemi, Lapland. Contestants need to snap a photo pf OH-LZL (with the new emblem) to be eligible for the contest drawing:

Spot Santa’s aircraft and snap a photo for a chance to win flights for two to Rovaniemi, Lapland. Use the hashtag #officialairlineofsanta and post it on Twitter or Instagram until November 30. The winner will be announced in the first week of December.

As Santa’s offical airline, two of our newest Airbus A321 aircraft with Sharklets wear a special Santa livery. You can spot the special aircraft flying into some of Finnair’s European destinations.

Get your cameras ready. The competition is ready to start!

For more information: CLICK HERE

Finnair Official Airline of Santa

Images: Finnair.

Finnair aircraft slide show: AG Slide Show

Finnair’s board approves the incentive plan for its pilots

Finnair (Helsinki) as part of the agreement with its pilots announced last month, has received board of directors approval for a one-time, long-term incentive plan for its pilots. The company issued this statement:

The Finnair Board of Directors has approved a one-off long-term incentive plan for Finnair pilots. The plan is a part of the savings agreement between Finnair and the Finnish Air Line Pilots’ Association (SLL) that brings Finnair 17 million euros in permanent annual savings. The savings agreement was contingent on the realization of the incentive plan.

The plan period is 2015-2018 and the prerequisite for rewarding pilots based on this plan is the materialization of the agreed cost savings over this time period. In addition, the company share price must at least be 4 euros at the end of the incentive plan. If these conditions are met, the pilots are entitled to a cash payment. The amount of the payment is based on the Finnair share price. The total reward to pilots amounts to 12 million euros if the share price is 4 euros or a maximum of 24 million euros, if the share price reaches at least 8 euros. Divided over the four year period, the annual earnings potential for an individual pilot is equivalent to 5-10 per cent of annual base salary.

Finnair plans to hedge the additional costs above the 4 euro share price with a market-based call option. If the conditions of the plan are met, the associated total cost over the four year period is thus limited to approximately 12 million euros. The closing price of Finnair share was 2.39 euros on 10 October 2014.

The number of pilots eligible to participate in the plan is approximately 700. The cash reward will be paid to pilots in spring 2019, provided that the aforementioned performance criteria are met.

“With this incentive plan the savings agreement negotiated with pilots enters into force, which is essential to improve Finnair’s competitiveness. If the plan’s performance criteria are met, Finnair shareholders will have enjoyed a significant increase in the company’s valuation and the pilots will receive a one-time compensation for the permanent savings they have agreed on,” says Finnair’s CEO Pekka Vauramo.

“I am also very pleased that we reached a negotiation result with our cabin crew. With both pilots and cabin crew we negotiated significant savings agreements that support the company’s growth. In return for savings, Finnair gives its cabin crew protection from redundancies for the next two years, protection from outsourcing and a pension incentive as well,” says Vauramo. “The agreed changes in the collective labour agreements and other savings measures are not easy for our flying personnel or other employee groups with whom we have made savings agreements. I am grateful that our employees have responsibly contributed to the negotiated solutions. This is quite exceptional in our industry and demonstrates the kind of commitment to Finnair’s future that I am very proud of.”

The share prices for target and maximum level rewards are identified solely for the purpose of this incentive scheme, and they shall not be considered as guidance on Finnair’s share value.

Finnair used PCA Corporate Finance as an advisor in the planning of this incentive plan.

Copyright Photo: SPA/AirlinersGallery.com. Airbus A321-231 OH-LZL (msn 6083) with Sharklets departs from London’s Heathrow Airport.

Finnair Aircraft Slide Show:

Finnair: AG Slide Show

Finnair’s first quarter loss doubles from last year

Finnair Group (Finnair) (Helsinki) reported a first quarter loss of €34.2 million ($47.3 million). The loss doubled from a loss of €17.5 million ($24.2 million) in the same quarter in 2013. The decline was attributed to a falloff in leisure travel and a new weakness in business travel.

Read the full report from the Helsinki Times: CLICK HERE

In other news, Finnair is set to open a new Premium Lounge directly adjacent to the award-winning Finnair Lounge near Gate 36 in the non-Schengen area of Helsinki Airport. The Premium Lounge, designed by the Helsinki firm dSign Vertti Kivi & Co, complements the original Finnair Lounge and will be ready for Platinum and Gold Finnair Plus members and other oneworld top-tier customers by July 1, 2014.

Finnair HEL Lounge

The Premium Lounge showcases classic Nordic design in harmony with Finnish nature, with dynamic changes in light, colors and video projections synchronized with the seasons and time of day to create a calm atmosphere for travelers. High-quality complimentary meals and drinks, including wines and spirits, are plated on Marimekko tableware or served in Iittala Ultima Thule glasses – first designed for Finnair in 1968 by Tapio Wirkkala. The lounge features carefully selected furniture including legendary Tulip and Womb chairs created by Eero Saarinen. The 4380 foot space can comfortably seat up to 122 guests providing them with separate areas for work and relaxation.

As part of the overall upgrade in lounge services, the customers of both the Premium Lounge and the original Lounge will also enjoy access to completely new private shower suites and Finnish sauna. Towels and forest berry-based shampoos, shower gels and lotions from Finland will be provided.

“This new and exclusive lounge takes Finnair’s long association with Finnish design to a new level,” says Markku Remes, Finnair’s Manager of Lounge and VIP Services. “We will be delighted to welcome our most loyal and regular customers into this special space before their flight.”

“Our aim was to create a high-quality, even emotional experience for Finnair’s demanding clients,” says designer Vertti Kivi. “Different zones for work, refreshment, silence or bathing are unified with a light Scandinavian design touch, creating a space that clients won’t forget.”

The Premium Lounge is open to Finnair Plus Gold and Platinum members and their guests, as well as to frequent flyer cardholders with equivalent status at a fellow oneworld airline, including Finnair’s joint business partners American Airlines, British Airways, Iberia and Japan Airlines.

Other Business Class passengers are welcome to the original Lounge, which is directly adjoining the Premium lounge and is regularly featured in lists of the world’s top airline lounges.

Copyright Photo: Javier Rodriguez/AirlinersGallery.com. Newly-delivered Airbus A321-231 OH-LZL (msn 6083) with Sharklets lands in the leisure market of Palma de Mallorca.

Finnair: AG Slide Show