Finnair’s shares are collapsing today (down 24% as of the time of this post), as the airline has warned that its Asia route network is no longer sustainable.
Continue reading: Finnair Warns Of Russian Airspace Closure Impact
Share your questions, experiences, and thoughts below.
Yes it has an impact, but not an impossibility:
HEL - BUD - BKK : 6029 miles
HEL - BKK : 4890
it adds 23% to the distance
I don’t how Finnair shifting flights to North America helps them right now, yes they can fly there but surely the war is going to depress (already soft) demand to Europe, especially east and Central Europe where Finnair makes sense for North American connections.
Sure Ukraine is a big place but it’s only a little over 1000km from Vienna to Kiev; that’s going to weigh on summer tourist demand from the US to Europe.
Funnily enough, as a European airline with good links to Asia, demand for Finnair tickets isn’t primarily driven by USA residents (as difficult as that may be to comprehend for many Americans who seemingly forget that 96% of the world population isn’t actually American)… adding US routes was primarily for Europeans visiting the US. Europeans also travel y’know 🙂 Demand TO Europe, from America, may be low-ish, but demand FROM Europe is high to pretty much everywhere, primarily because people haven’t been able to travel for so long.
On an unrelated note, avoiding Vienna because Putin is terrorising Kiev is a bit like avoiding Toronto because the police in Minneapolis murder some of the citizens they are supposed to be protecting… It’s a long way away and in a different country.
If adding 23% to the distance adds 23% to the operating costs (which it probably does, roughly), it’s not sustainable or viable, given that many Finnair customers are already starting their journey elsewhere in Europe when they fly to Asia
On your unrelated note, it depends on your view point. But Ferguson, MO is long way away and in a different state. But that didn't stop Minneapolis police did it?
Finnair can wet leased from CX for their Asian routes. The only question is does their union contract allowed that?
Go look at a map again, that HEL-BUD-BKK path takes you into Russian and Ukrainian airspace.
Not to mention that BKK is already garbage for yields compared to someplace that’s even more impacted by losing Russian airspace like HEL-NRT.
You sir are a tool.
Your racist stereotypes have no business here. Please go back under the rock you call home.
Japanese carriers JAL and ANA will be massively affected as all their Europe-bound flights overfly Russia. JAL is a partner with Finnair on those routes too.
why are you only writing about non US airlines. Why not write about UA which is still flying over Russian airspace and other US carriers. So USA is profiting over the ban of its allies like the EU, CAN etc. but the USA will not put a ban over Russian carriers flying over US airspace!
Simply DISGUSTING! Now when we are in the verge of the WW3 suddenly the US Americans are tired and reluctant to lead as its has been doing for decades. It seems not only the Russians are becoming the disappointment. Trumptard attitudes of the last 4 years have made the Americans indifferent and egoistic.
The Russians will make them remember the Cold War sooner than they have wished for.
Having flown Finnair from Chongqing China to Düsseldorf via a short stop in Helsinki and then Frankfurt to Nanjing China also via a short stop in Helsinki, the news regarding Russian airspace closure is a huge blow to the airline, other passengers and myself who have discovered that on the Asia-Europe long haul, Finnair was up there with the best. Excellent inflight service and speedy transits through Helsinki all added up to create a go to choice. Let’s hope Finnair can find a way around the Russian problem and get back to being a really worthwhile airline choice for Asia-Europe-Asia routes
Japanese carriers can continue to fly via Russian airspace so if anything, they will be affected positively. JAL will probably get a lot of that Finnair demand shifted to them, with Finnair still providing connecting flights to elsewhere in Europe.
How much do you think Ukraine contributed to overal European tourism? Finnair will of course lose Russian tourists (who won't be allowed in and likely won't be able to afford the trip either, since ruble is collapsing) but the rest of the demand should remain relatively stable.
Jumped the gun. I bet you wish you waited 1 day for that analysis.
https://www.cnbc.com/2022/03/01/us-bans-russian-aircraft-from-american-airspace.html