Finnair To Add Aircraft To Meet Demand

June 1, 2016

Finnair is considering adding more aircraft to its fleet as it attracts more passengers from Asia, with only a small impact on travel demand from recent terrorist attacks.

"We are currently looking for some additional (Airbus A321s)," Pekka Vauramo, Finnair chief executive said in an interview on the sidelines of the annual IATA meeting.

Finnair, which uses its Helsinki hub to bring Asian passengers to European destinations, said last month it would hit a target to double Asian traffic two years ahead of schedule.

The airline's need for new aircraft to boost its short-haul fleet comes as other carriers, such as Lufthansa, have said they have seen reduced demand after attacks on Paris in November and Brussels in March.

Vauramo said that while there ware concerns, customers had tended not to cancel but instead shift destinations to Spain and Nordic countries.

"The impact has still been fairly small on us," he said.

Finnair already has six A321s on order with deliveries starting next year. Vauramo said there was good availability from lessors for A321s, although there was healthy competition on price.

Vauramo said Finnair would take a decision on the additional A321s "step by step" because the airline had flexibility on the wide-body side. Recently, it decided to keep flying two A330s which it had been planning to retire next year.

Any decision on taking additional A321s would be dependent on the fuel price and market conditions, he added.

(Reuters)