Indian Aviation News: Finnair sees India as crucial market for transit, tourism

Nordic carrier Finnair sees India as a strategic market not just for inbound tourism into Finland, but to also serve as a convenient hub for transit to other European nations and North America, said Mika Vehvilainen, Chief Executive, Finnair.

But the carrier, which currently flies to New Delhi, has no immediate plans to look at other Indian cities or re-introduce passenger operations to Mumbai. The airline had suspended operations to Mumbai some years ago, IANS reported.

"India offers a lot of potential. It is a growing and important market for us. But the aviation market there faces lot of competition," Vehvilainen said, on the margins of Finnair's annual global press meet in Helsinki recently.

"In fact, the Asian economy is growing very fast and we are very keen to grow with it. Our team has also spotted 10-12 destinations there. But for the moment, we don't have any expansion plans. We want to consolidate," he said.

According to Gregory P Kaldahl, Senior Vice President - Resource Management, Finnair, fast economic growth in Asia is driving the market for Finnair's Asia-Europe traffic. In fact Asia, led by India and China, accounts for nearly half of the carrier's traffic.

"India is a growing market, but it is unstable. We are not sure when we would be able to expand. It can happen next year. We know we have to grow with the Indian economy - it's a billion-people country. We need to serve their needs properly," Kaldahl said.

Finnair also wants to cash in on the potential the strategic location of its hub at Helsinki offers. As the crow flies, the shortest flights to North America from India are via Helsinki; the route can be covered in 15:30 hours with a 30-minute stopover.

Not new to India, with chartered flights to Goa for nearly three decades, Finnair flies six times a week to New Delhi. The airline is also keen on Chennai and Bangalore - thanks to some 100 Finnish firms having bases there.

The carrier is also upbeat on attracting Indian tourists to Finland, and has deployed its most modern fleet for its India operations.

The Nordic carrier was hoping Kingfisher Airlines would become a member of OneWorld, an airline alliance among 12 global carriers, including Finnair, by this year to offer greater synergies. But the Indian carrier is facing tough times itself.

"We had a partnership with Kingfisher Airlines, but now they are facing difficulties. It has made the current state full of challenges. But we have future plans for India as it is an important market for us," Vehvilainen said.

http://www.travelbizmonitor.com/finnair-sees-india-as-crucial-market-for-transit-tourism-16643