Finnair chief urges global airline alliance to raise game in Asia
Finnair is operating at a disadvantage because the OneWorld alliance to which it belongs has failed to recruit members in China or India, says the carrier’s CE. Partners in the world’s two most populous countries are critical to Finnair’s long-haul business handling passengers travelling between Europe and Asia via its Helsinki hub, said Pekka Vauramo. Vauramo was pleased with some aspects of what OneWorld had brought his airline since it joined in 1999 but he was “not happy” in terms of China and India. Among the two other big global airline alliances, Star Team includes Air India and China’s Shenzhen Airlines, while SkyTeam includes four Chinese carriers. Vauramo said the issue was one of two facing Finnair, and called for the lifting of restrictions on its ownership to ensure participation in consolidation in the European airline market. “OneWorld doesn’t have a partner there,” Mr Vauramo said of China and India. “In the long run, we do need a partner in China if we want to continue to grow that business — and we want to continue to grow that business. We’re at a disadvantage because we don’t have that.” Vauramo noted that Qantas of Australia had gone outside OneWorld, of which it is a member, to form a strategic partnership with Emirates of Dubai, which belongs to no alliance. Finnair has been vindicated in its decision nearly 30 years ago to focus on Asia where its has gradually taken market share from larger competitors. The company benefits from Helsinki’s location nearly directly on many of the shortest natural routes between Europe and east Asia. Vauramo reiterated calls for the Finnish government, which owns 56% of Finnair, to scrap rules that oblige it to retain a majority of the shares. A change would prepare the airline for consolidation among European airlines.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-03-14/oneworld/finnair-chief-urges-global-airline-alliance-to-raise-game-in-asia
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Finnair chief urges global airline alliance to raise game in Asia
Finnair is operating at a disadvantage because the OneWorld alliance to which it belongs has failed to recruit members in China or India, says the carrier’s CE. Partners in the world’s two most populous countries are critical to Finnair’s long-haul business handling passengers travelling between Europe and Asia via its Helsinki hub, said Pekka Vauramo. Vauramo was pleased with some aspects of what OneWorld had brought his airline since it joined in 1999 but he was “not happy” in terms of China and India. Among the two other big global airline alliances, Star Team includes Air India and China’s Shenzhen Airlines, while SkyTeam includes four Chinese carriers. Vauramo said the issue was one of two facing Finnair, and called for the lifting of restrictions on its ownership to ensure participation in consolidation in the European airline market. “OneWorld doesn’t have a partner there,” Mr Vauramo said of China and India. “In the long run, we do need a partner in China if we want to continue to grow that business — and we want to continue to grow that business. We’re at a disadvantage because we don’t have that.” Vauramo noted that Qantas of Australia had gone outside OneWorld, of which it is a member, to form a strategic partnership with Emirates of Dubai, which belongs to no alliance. Finnair has been vindicated in its decision nearly 30 years ago to focus on Asia where its has gradually taken market share from larger competitors. The company benefits from Helsinki’s location nearly directly on many of the shortest natural routes between Europe and east Asia. Vauramo reiterated calls for the Finnish government, which owns 56% of Finnair, to scrap rules that oblige it to retain a majority of the shares. A change would prepare the airline for consolidation among European airlines.<br/>
