Finnair suffers losses of 20 million euros; company opposes state support for airlines

Friday 23, April 2010


Finnair suffers losses of 20 million euros; company opposes state support for airlines


As a result of air space closure due to the cloud of volcanic ash from Iceland, Finnair had to cancel over 1,700 flights in the last week, disrupting the travel of over 140,000 passengers.



The cessation of traffic for the week and the process of recommencing it are estimated to cause a loss of 20 million euros to the company. The losses include the costs of stranded passengers' accommodation as from yesterday.


However, Finnair opposes compensation of losses to airlines by European Union commission-approved subsidies.


"Companies in a weaker economic condition are making strong demands for help. A subsidy stampede would distort competition, because the risk of airlines using the system for wider support would be great. We are already seeing support that contravenes the EU's state-aid rules," says Mika Vehviläinen, Finnair's CEO.


According to EU air services regulation, in order to maintain their operating licenes, airlines must at all times be able to meet their actual and potential financial obligations for the next 12-month period.


"We presume that the authorities will check immediately if the companies demanding support fulfill the conditions of their operating licenses. The cessation of operations for a week should not destabilize the solvency of a company that meets the EU requirements," Vehviläinen continues.


"The EU commission has made unreasonable demands on airlines in areas where the responsibility in fact should rest on member states, but at the same time has paid scant regard to the fulfilment of operating license requirements and been sympathetic to subsidizing potentially non-compliant airlines in these circumstances. For future and comparable situations, there should be guidelines that are clear and appropriate for both customers and airlines," Vehviläinen states.




Bookmark and Share


^ back to top


Find the best deals available today

The grey menu on the right is your best friend. Always check before you travel.

Plan your trips with the help of great resources

More and more travellers think that researching and planning a European city break is half the fun and they're not interested in pre-arranged trips or escorted tours. Self-guided tours offer a lot of advantages but require some guidance and good resources.


Clean, green and very pristine

Top 10 most environmentally pure countries

With the recent wild fires, disrupting flights and increasing air pollution, environmental quality is a growing factor in attracting tourists.



Top 15 most spectacular hotel rooftop views

The hotel price comparison site has put together a list of the fifteen most spectacular hotel rooftop terraces in the world.

Latest offers, discounts and more...

Accor “3=2 offer”
Why not extend your stay? 3 nights for the price of 2.
Columbus Direct travel insurance
Quality cover at low prices to customers all around the world.
Priority pass
Access VIP lounges no matter where which airline and class you fly.
European City Cards
See more and pay less! Get your "passport" to European cities.
Rail Europe
Comfortable and affordable on European trains.
Lonely Planet Magazine
Packed with insider knowledge, hints and tips.
Sandemans New Europe City Tours
Free walking tours in 13 cities within 9 countries.
Sol Melia Wednesdays
Search your exclusive special offers now for the coming weekend!
Low-cost shuttle and private transfers in over 70 countries.
IMEX Frankfurt 25-27 May
The essential worldwide exhibition for incentive travel, meetings and events.
Subscribe to Travelio News Summary via RSS Follow our news titles on Twitter Become a fan of on Facebook Bookmark and Share