Man annoyed by mobile phone use stabbed a teenage girl in Nokia

Man annoyed by mobile phone use stabbed a teenage girl in Nokia

A man born in 1957 stabbed a teenage girl in the upper body ...

Government to invest in bio-economy and education

Government to invest in bio-economy and education

The Government is set to step up its efforts.

The Governmen...

New central library is now under construction

New central library is now under construction

The construction of the new Helsinki Central Library began y...

Sanoma to close its printing plant in Forssa

Sanomapaino announced on Monday that it has wrapped up consu...

Exports of major industries picked up in June

Exports of major industries picked up in June

The exports of major industries in Finland picked up conside...

VR forced to cut prices

VR forced to cut prices

VR Group will overhaul its operations in an attempt to adapt...

  • Most Read

Short-haul carriers struggle with weak profitability

Finnair and Flybe announced on Wednesday that they have reached an agreement on the sale of their joint venture, Flybe Nordic.

The providers of short-haul domestic flights have struggled with weak profitability for several years.

The most recent indication of the financial woes came on Wednesday when Flybe, a British carrier, announced that it will pull out from its joint venture with Finnair, Flybe Nordic. Flybe Finland, a subsidiary of Flybe Nordic, has been responsible for operating the majority of short-haul routes in Finland – some independently and some as a service provider for Finnair.

Flybe owns 60 per cent and Finnair 40 per cent of the shares in Flybe Nordic.

Pekka Vauramo, the CEO at Finnair, said on Wednesday that a new majority shareholder will be sought for the joint venture due to its weaker-than-anticipated performance. If one is not found, Finnair will buy out the stake of Flybe for a nominal fee of one euro.

The weak profitability of short-haul flights has been a concern for years.

Mikko Saariaho, the director of corporate communications at Finavia, points out that passenger numbers on domestic flights have dwindled steadily already for ten years, at an annual average rate of 1.7 per cent. On international flights, passenger numbers have contrastively increased by 5.2 per cent per annum since 2004.

Heikki Arola – HS
Aleksi Teivainen – HT
© HELSINGIN SANOMAT
Photo: Antti Aimo-Koivisto / Lehtikuva