War in Ukraine, Finnair shares plummet 24%
We have written about it in recent days and this morning in our examples: alternative routes risk sending legs down [...]
Finnair
Oneworld
We wrote this in the days past and this morning In our examples: alternative routes risk sending legs down several carriers. And perhaps the first to go down will be Finnair.
In this article:
For years, the Finnish company in the One World alliance. has staked so much on its strategic location and its claim inviting European passengers to choose it for the best possible route to Asia.
That is, however, until the day before the airspace blockade to all carriers (34 European and non-European), which Russia banned from flying over.
The reason is easy to imagine looking at this track of the flight from Helsinki to Bangkok, more than 60 minutes extra flight time, but for all other destinations, such as Korea and Japan, the duration is likely to come close to the limit of the A350 in fleet with Finnair.
When this morning at the opening of the markets, stocks lost 1/4 of their value than the previous day, Finnair's CEO issued a very concerned statement about the impact the restrictions will have on his and all other airlines.
"The crisis in Ukraine touches all Europeans and we understand the EU's decision to close its airspace. We are implementing our contingency plan as the situation has a considerable impact on Finnair. Bypassing Russian airspace considerably lengthens flight times to Asia and, therefore, the operation of most of our passenger and cargo flights to Asia is not economically viable or competitive."
The Finnish carrier operates with Two flights also from Stockholm airport. and one of these two routes is specifically to the capital of Thailand. As reported by the CEO, the flights are not economically viable, precisely because of the route that forces unnatural and much more expensive routes to be drawn.
In conclusion
Finnair is definitely the worst placed carrier among Europeans, but Japanese companies will also be in great difficulty in reaching Europe, especially countries such as England, Germany, and all northern European destinations. The same applies to all cargo companies, since the ban affects everyone, regardless of whether they are carrying passengers, oligarchs or cargo.
Nothing changes, however, for carriers such as Qatar, Emirates or Turkish, which, taking advantage of a different geographical location, are not affected and are not even currently affected by the overflight ban.
