Finnair's second quarter revenue increases by 10 percent

Helsinki, Aug 22 (IANS) Nordic carrier Finnair has reported a 10 percent rise in revenue for the second quarter of the current calender year at 600 million euros (Rs.4,147.74 crore) on the back of the renewed demand and a cost reduction programme.

"The result reflects not only increased demand but also the successful progress of our structural change and cost reduction programs. We have taken definite steps forward, although the majority of cost savings are still being realised," Mika Vehvilainen, chief executive, Finnair, said Tuesday.

"In order to succeed, it is absolutely necessary for us to improve the efficiency of our operations substantially," Vehvilainen said.

According to the company, its turnover increased to 600 million euros in the second quarter of 2012 and operational result turned positive by 14.7 million euros.

The company plans cost reductions of approximately 80 million euros out of the structural change and cost reduction programme. Its total target of 140 million euros are expected to be achieved by the end of 2012.

The company plans to hive off its engine and component services as well as catering business as a measure of the cost saving measures.

The company had also entered into a partnership agreement with another airline Flybe in May for transferring few European flights flown on 12 Embraer 190 aircraft to Flybe from October.

Finnair has recently announced codeshare cooperation with German airline airberlin for service expansion in Scandinavia and the Middle East markets.