Finnair announces major cost-cutting initiative

Finland’s national flag carrier Finnair recently announced it has initiated major cost-cutting exercise and wants to make the airline more competitive.

The airline in a statement said that it is aiming to cut costs and wants to save $178.43 million (140 million Euros) over the next two years.

The airline stated that it wants to expand Finnair flights network and introduce more flights to various new destinations.

According to the airline, the savings made over the two years through cost-cutting measures would help it to fund for the purchase of new aircrafts so that the carrier be made even more competitive.

Mika Vehvilainen, Chief Executive of Finnair, said that it is good that the airline has been able to make significant profits in the most recent quarter. He, however, said that it’s still a long way for the airline to reach its long-term profit target of six percent operating profit margin.