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Published: 2007-10-23 15:07:22 CEST
Finnair Oyj - Company Announcement
EUR 14 MILLION CAPITAL GAIN TO FINNAIR FROM FLYNORDIC SALE
At the end of June, Finnair sold its Swedish subsidiary FlyNordic to the
Norwegian budget airline Norwegian Air Shuttle. The sale was confirmed at the
end of July, and arrangements connected with deal have now been finalised.
The FlyNordic was implemented as a share swap through which Finnair gained a
more than five per cent ownership of Norwegian Air Shuttle. In addition,
Finnair got share options which, if exercised, would increase its ownership to
around ten per cent by the end of 2008.
A capital gain of EUR 18.6 million will be recognised for the sale. At the same
time, an additional depreciation of EUR 3 million will be made on the six
Boeing MD-80 aircraft used by FlyNordic but owned by Finnair Aircraft Finance.
In addition, a EUR 1.5 million amortisation of goodwill will be recognised for
FlyNordic. The positive net impact of the sale on Finnair's third quarter
operating profit is EUR 14.1 million.
In the terms of the deal, cooperation between Norwegian and Finnair was agreed
in which Finnair's Asian traffic passengers will be offered the wide range of
Scandinavian destinations to which either Norwegian or Fly Nordic flies. The
same feeder connection will also provide input into Finnair's Asian flights.
The scope of cooperation is estimated at around 30,000 passengers for next
summer. The relationship will be expanded to cover a greater range of
destinations and all markets when a harmonisation of information systems has
been completed.
“The sale of FlyNordic to a successful Scandinavian budget airline is sensible
from the perspective of Finnair's present strategy. Our intention is to focus
as Finnair on Europe-Asia traffic and to cooperate in Scandinavian feeder
traffic,” says Finnair's President & CEO Jukka Hienonen.
In connection with the deal, it was decided to share FlyNordic's profit from
charter operations equally between Finnair and Norwegian. The income generated
from this will be recognised in the final quarter of 2008.
Finnair Plc
Communications
23.10.2007
Further information:
Lasse Heinonen, SVP and CFO, tel. +358 9 818 4950
Finnair Oyj - Company Announcement
EUR 14 MILLION CAPITAL GAIN TO FINNAIR FROM FLYNORDIC SALE
At the end of June, Finnair sold its Swedish subsidiary FlyNordic to the
Norwegian budget airline Norwegian Air Shuttle. The sale was confirmed at the
end of July, and arrangements connected with deal have now been finalised.
The FlyNordic was implemented as a share swap through which Finnair gained a
more than five per cent ownership of Norwegian Air Shuttle. In addition,
Finnair got share options which, if exercised, would increase its ownership to
around ten per cent by the end of 2008.
A capital gain of EUR 18.6 million will be recognised for the sale. At the same
time, an additional depreciation of EUR 3 million will be made on the six
Boeing MD-80 aircraft used by FlyNordic but owned by Finnair Aircraft Finance.
In addition, a EUR 1.5 million amortisation of goodwill will be recognised for
FlyNordic. The positive net impact of the sale on Finnair's third quarter
operating profit is EUR 14.1 million.
In the terms of the deal, cooperation between Norwegian and Finnair was agreed
in which Finnair's Asian traffic passengers will be offered the wide range of
Scandinavian destinations to which either Norwegian or Fly Nordic flies. The
same feeder connection will also provide input into Finnair's Asian flights.
The scope of cooperation is estimated at around 30,000 passengers for next
summer. The relationship will be expanded to cover a greater range of
destinations and all markets when a harmonisation of information systems has
been completed.
“The sale of FlyNordic to a successful Scandinavian budget airline is sensible
from the perspective of Finnair's present strategy. Our intention is to focus
as Finnair on Europe-Asia traffic and to cooperate in Scandinavian feeder
traffic,” says Finnair's President & CEO Jukka Hienonen.
In connection with the deal, it was decided to share FlyNordic's profit from
charter operations equally between Finnair and Norwegian. The income generated
from this will be recognised in the final quarter of 2008.
Finnair Plc
Communications
23.10.2007
Further information:
Lasse Heinonen, SVP and CFO, tel. +358 9 818 4950
