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BUSINESS REVIEWFINANCIAL STATEMENTSFINNAIR AND SOCIETYSHAREHOLDERS


CEO review


Key Figures 2004


Scheduled Passenger Traffic


Leisure Traffic


Travel Services


Aviation Services


Risk Management


Corporate Governance


Board of Directors and Auditors


Group Management


Finnair in Brief


Organisation


Destinations


Fleet


Traffic Performance

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FINNAIR IN BRIEF

Most experienced in Nothern skies

Finnair's goal is to be the leading Northern European aviation service enterprise.

European excellence

Finnair's aim is provide the most highly regarded quality of travel related services, which are operationally the best in Europe and which are the most desirable choice for the customer.

Market leader

Finnair is the market leader in air transport out of and into Finland as well as in the gateway traffic through Finland.

Values

The values that guide Finnair's operations always put the customer first. Our priorities are constant development, honesty, openness, willingness to take responsibility, fairness and respect for others.

Sustainable, profitable growth

Finnair's business objective is to achieve sustainable and profitable growth. Geographical expectations are placed on the growing Asian, Scandinavian and Baltic markets.

Competition strategy

Finnair's competition strategy is based on its high quality of service, its status as one of the most punctual airlines in the industry and its comprehensive, continually expanding route network via its alliance partnerships. Finnair is safeguarding its strong competitive position by making effective use of various distribution channels and by developing its services.

Capitalising on e-business

Finnair will improve its competitiveness and cost efficiency by taking advantage of the possibilities e-business offers in its internal and external processes as well as in e-commerce and customer service.

Capable partner

Finnair is determined to be a capable and active partner that provides added value for its associates. Finnair is an expert on the Nordic dimension within the oneworld alliance. It is Finnair's aim to consolidate its position by being a pioneer as well as a developer and user of new technology, as well as being a beneficiary of the synergies offered by the alliance.

Preferred choice

Finnair's aim is to be the most desirable, safe, reliable and friendly choice for its customers. Finnair is systematically developing its service concepts on the basis of feedback from its customers. New technology enables us to provide an increasingly personal and comprehensive service for our clients.

Professional personnel

A professionally skilled, motivated and committed work force is an asset that Finnair values highly. We actively work to promote job satisfaction as well as staff capabilities in a rapidly changing work environment. A management culture of reward underpins our personnel strategy.

Corporate and social responsibility

Finnair recognises its role as responsible partner in the society and the communities where it is operating. A responsible and open environmental policy is a permanent feature of the company's way of doing business. We pay active attention to the most pressing environmental challenges, which are aircraft noise, engine emissions and waste management.

Dividend policy

It is the aim of Finnair's dividend policy to pay on average at least one third of the earnings per share as dividend during an economic cycle.

Financial targets

The basis for setting financial targets is that the company produces added financial value. The target is met if the six percent operating profit margin and 17 percent EBITDAR ratio are surpassed.


FINNAIR IN BRIEF

Most experienced in Nothern skies

European excellence

Market leader

Values

Sustainable, profitable growth

Competition strategy

Capitalising on e-business

Capable partner

Preferred choice

Professional personnel

Corporate and social responsibility

Dividend policy

Financial targets