Welcoming a veteran bank executive as CEO, Finnair signals a focus on finances.
Topi Manner of Nordea, the Nordic region’s biggest bank, will become CEO of the Finnish state-owned airline on January 1. Manner has been with Stockholm-based Nordea for 20 years, serving as Head of Personal Banking, member of Group Executive Management since 2016. Previously, he was CEO of Nordea Bank Finland, Head of Banking Finland & Baltics and Executive Vice President, Head of Banking Finland & Baltics, overseeing the retail banking business in Finland, Estonia, Latvia and Lithuania.
“Topi Manner has extensive experience in both private and corporate customer business, and he has played a strong role in the digital transformation and customer service development of his bank,” Finnair Chairman Jouko Karvinen said. Manner will succeed Pekka Vauramo, Finnair’s CEO since 2013, who will continue his executive management career as President and CEO of engineering company Metso in November. Vauramo is credited with returning Finnair to profit growth by cutting costs and focusing on passengers flying between Europe and Asia.
Antti Viljakainen, an analyst with Inderes, said he does not anticipate major changes to Finnair’s strategy under the new management. “Chairman...highlighted (Manner’s) experience in people-centric leadership. It is of the utmost importance at Finnair, to be able to balance between the personnel groups and the owners,” Viljakainen said. Finnair, along with Norwegian and SAS, is part of the “Nordic Three” top airlines in the Nordic region.
Manner takes the top executive role at Finnair amidst a years-long struggle to compete with the airline industry’s discount carriers. Finnair has also had difficulties restructuring its operations, due to push-back from strong trade unions. It has also had to operate under strained relations with the state. Disputes have arisen over compensation, leading to the resignation of a board member for management compensation earlier this year. In July Finnair suffered a setback when it warned that a substantial increase in fuel prices would impact profits in the second half of the year.
Another problematic issue in recent years has been the call from some government officials to scrap a clause that requires the state to own more than 50% of Finnair. It currently owns 55.8%. Those in favour say this would allow Finnair to participate in airline industry consolidation. Asked about the ownership, Chairman Karvinen said the company is focused on developing its business “under the current situation”. He added, “For sure, we think about all kinds of strategic options. I have a peaceful mind...and we will always discuss these matters directly with the owners.”
