Dear Shareholder
For Finnair, 2005 was a success. Following the retirement of President and CEO Keijo Suila at the end of the year, I would like to take this opportunity on behalf of Finnair employees and shareholders to thank him for his long-term, excellent work performed in difficult circumstances. Finnair today is among the best airlines in terms of financial and operational key figures.
Competition in the airline industry continues to be intense. The industry is still burdened by high overcapacity and an adjustment will be required before a worldwide recovery in the sector can take place. The rise in the price of fuel over the last three years and falling ticket prices represent a problematic equation for airlines. Finnair has decided to come through this situation as one of the winners.
We will seek growth where the conditions to operate profitably exist. Traffic between Asia and Europe is expected to grow by around seven per cent a year far into the future. Finnair's Asian traffic is already growing at double that rate and our market share in the Eastern market in rising.
Finnair's air transport hub at Helsinki-Vantaa Airport has an excellent location. The shortest route from Europe to Asia passes over Finland, and Helsinki is the first EU capital city encountered when flying from Asia to Europe. Finnair's route network of more than 40 international destinations is useful for those passengers for whom no direct connection exists between their place of departure and their destination. An uncongested airport ensures fast flight changes and our location delivers the shortest possible flying time.
Finnair's balance sheet is strong and we are a debt-free company. We are implementing an extensive investment programme, which this year will already make Finnair's scheduled traffic fleet the most modern in Europe. In the next few years we will be modernising our long-haul fleet. Soon we will be flying on scheduled traffic routes with two types of aircraft: with modern short-range Embraer aircraft and a medium- and long-range Airbus fleet. The fuel efficiency of our aircraft is competitive and environmental emissions the lowest possible.
The Finnair of the future wants to maintain its position as Europe's most punctual airline. In air transport, safety is the foundation for all operations and in this area we make no compromises. Finnair's service is unquestionably among best in the industry. We will continue to take excellent care of our customers and offer better products than our competitors both in business and leisure travel.
To our shareholders we aim to be a responsibly managed company that maintains its financial performance, a company that exhibits high expertise and a way of operating that inspires trust. Finnair is one of Finland's most interesting employers and we, as Finnair employees, are genuinely proud of our company.
I have taken over the leadership of a financially sound company and challenging market conditions lie before us. The airline industry is a dynamic, fascinating field of business, which is growing worldwide. In a competitive environment, every gain must be hard won; results must be earned through work, expertise and trust. We want to develop Finnair as a strong international company that has roots in Finland and a global reach. We will take our customers there - and bring them home for the evening!
Jukka Hienonen | 
