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Finnair

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INSTITUTE FOR INTERNATIONAL MANAGEMENT AND TECHNOLOGY

MODULE: U54081 Strategic Analysis of Hospitality and Tourism Businesses

MODULE LEADER: Mr. Sandeep Munjal

STUDENT NAME: SIDHI RAJ CHITKARA

STUDENT NUMBER: 010107043

WORD COUNT: 3271 Words

DATE: 21st April 2011

INDUSTRY OVERVIEW
An Airline is a scheduled air transport facilitator. There has been a major increment in fleets to connect all major airports of the world due to technology development. This aids to reduce cost and flying more people. Since 1970, there has been a 5 fold increase of traffic at the airports of the old 15 Euro states airports. The contribution to total GDP of Europe is 3.1% (€ 275 billion). European Airline Industry focus is to offer steady, loyal, safe, environment friendly, competent and reasonable priced services. It aspires to maintain its position in the global competition and endeavour to strive to advance the performance in facets of services and products offered to clients.
It aids for about 7.7million jobs chipping in € 140 billion to GDP yearly. 80 million tourists (42%) visit Europe by air. 76% occupancy was achieved in 2009. The LCC have been assisted in many countries due to development of new airports and extension of current airports. 15% of inter European air traffic is due to LCC’s. Its main impact has been on the price of air fares, hence, in order to compete it has majorly strained national carriers to decrease their airfares. (Datamonitor,2010)

COMPANY BACKGROUND

Finnair Oyj was established in 1923 by the name of Aero Oy, and at present it is one of the oldest functioning airlines in the world. The company is public limited and the 55.8% of the shares are of Finnish government; the institutional investors hold the rest. More than 50% of the stake is always held and retained by the Finnish government. The Finnair Group comprise of numerous

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