In the next instalment of our senior executive interview series, Anna-Maria Kirchner, head of global sales at Finnair Cargo, discusses how the carrier’s strong flight network gives its customers access to the right capacity and schedules at the right time, how it is navigating regulatory complexities, and the importance of addressing sustainability in its operations. This is Part One of a two-part interview with Anna-Maria Kirchner.
In a highly competitive market, what differentiates Finnair Cargo from other major players in the industry?
We differentiate ourselves through our strategic hub location, state-of-the-art infrastructure, focus on sustainability, digital innovation, and commitment to high-value cargo.
This combination sees us as a preferred partner for businesses looking for a reliable, efficient, and environmentally conscious logistics solution.
It is our modern hub terminal, the COOL Nordic Cargo Hub in Helsinki, Finland, (offering an ideal gateway between Europe, Asia, and the US) that sees our routes are optimised for short transit times and high-quality cargo service, making it ideal for companies shipping goods between these major markets.
We also have a strong flight network across these markets, which means we provide efficient access to key business hubs and emerging markets across the Northern Hemisphere.
Beyond our extensive network with frequent connections, we boast one of the world’s most modern temperature-controlled air cargo terminals (with 24/7 operations supported by automation and temperature monitoring), allowing us to be an industry-leader in transporting temperature-controlled cargo such as pharmaceuticals, seafood, and other perishables.
Finnair has been carrying cargo since its first flight to Tallinn back in 1924, which makes us one of the oldest continuously operating airlines. With more than 100 years of air cargo experience and our commitment to high-quality service at our heart, we are known for our reliability, modern fleet, and innovative approach to aviation. That is why customers continue to trust us today.
Where do you see the biggest opportunities for growth in the air cargo sector, and how is Finnair Cargo positioned to capitalise on these opportunities?
The cargo sector presents significant opportunities for growth which is driven by both technological advances and evolving global trade patterns, as well as shifting consumer expectations.
Finnair Cargo offers fast, high-quality transport between Asia, Europe and North America, through its Helsinki hub.
At Finnair Cargo, our focus continues to be on the growth of e-commerce, especially cross-border, which is fuelling demand for fast and reliable air freight services. Online retailers and marketplaces are setting new customer expectations for ultra-fast delivery, especially for high-value or time-sensitive goods, and this will only increase the demand for air cargo transport in the coming years.
For this, we are well prepared and positioned, ensuring our customers have access to the right capacity and schedules at the right time. For example, Finnair has just taken delivery of its 18th A350-900, giving us access to more cargo capacity for 2025. But most importantly, this aircraft has also allowed Finnair to grow its operations for S25, allowing us to offer great connectivity to our cargo customers.
Finnair will offer its largest ever US schedule from Helsinki in summer 2025. Direct flights to Dallas will now operate up to 11 times per week, while services to Los Angeles will increase to five times per week, up from three times per week in summer 2024.
Chicago will also benefit from up to daily flights next summer, an increase from the five times per week in summer 2024, while Seattle will receive two extra weekly flights during peak periods, bringing the service up to five times weekly in 2025.
In Asia, flights from Helsinki to Osaka will also increase to daily from March 2025, an increase from five weekly flights last summer, supporting the World Expo 2025. Finnair’s newest long-haul route to Nagoya, relaunched in summer 2024, will also benefit from extra flights, with services doubling from twice per week last summer to four times weekly.
These increases come as Finnair prepares to operate daily flights to both Tokyo-Haneda and Tokyo-Narita airports next summer, giving customers the choice of 25 weekly flights between Europe and Japan.
Flights to China are also set to receive a boost, with Finnair’s Helsinki to Shanghai service set to increase to four times weekly, up from three times weekly last summer.
This operational expansion does not take into account our expansion in Europe too, for customers looking to ship items shorter distances. For example, this winter, we introduced our flagship A350-900 on flights to Las Palmas, opening up the island of Gran Canaria to Finnair Cargo, while flights between London and Helsinki increased from four to six times per day.
Widebody aircraft service continues also on the Helsinki to Amsterdam route.
Looking at cargo hub operations, our COOL Nordic Cargo Hub also has room to expand by 10,000 sqm in the future to meet rising demand.
Can you discuss Finnair Cargo’s efforts towards sustainability and how you are addressing environmental concerns within the industry?
Finnair Cargo’s modern hub allows it to transport temperature-controlled cargo such as pharmaceuticals, seafood, and other perishables.
Sustainability has been on our agenda for a long time. However, in recent years environmental, social, and governance (ESG) topics have been gaining more and more focus in air cargo and logistics in general.
For cargo operations, our environmental work is divided into three areas; own activities, sustainability offering to customers, and partner collaborations.
Flight emissions are the most important matter to address, and while new technologies are still required to reach carbon neutrality, all actions are valuable.
For Finnair operations, the goal is to reduce aircraft weight, and for Finnair Cargo we are constantly exploring new options to drive down emissions. For example, we are currently working to see if we can use lighter materials when building cargo pallets, thus reducing the weight of aircraft, and subsequently, fuel burn.
Our cargo terminal design takes into account sustainability aspects too, with the COOL Nordic Cargo Hub being one of the most advanced air cargo terminals in the world. This state-of-the-art hub at Helsinki Airport continues to move towards carbon-neutrality, with solar panels producing the equivalent of 37% of the hub’s annual electricity consumption. In fact, on a sunny day, the the COOL Nordic Cargo Hub is completely self-sufficient in terms of electricity production, with excess production being fed to other Finnair facilities.
Notably, our hub also received a rating of ‘very good’ in the international BREEAM (Building Research Establishment Environmental Assessment Methodology) classification system for construction.
However, as alluded to, the road towards net-zero will not be linear, as many of the tools we need are not yet available – such as synthetic fuels and new aircraft technology. We need to use the entire toolkit, including intermodality, new technology and synthetic fuels. The affordability of sustainable aviation fuel (SAF) continues to be a major challenge, and we need collaboration between all parties to make a net-zero future a reality.
What are the key regulatory challenges facing the air cargo industry today, and how is Finnair Cargo navigating these complexities?
For Finnair Cargo, the growth of e-commerce has fuelled demand for fast and reliable air freight services.
The International flow of goods has continued to expand and develop and with that we see countries responding with regulatory changes for increased visibility and security.
Governments are also looking to secure even more granular information about goods that are entering and exiting countries and, recently, we have seen the imposition of stricter air cargo security requirements by both the US Transportation Security Administration (TSA) and Transport Canada as just one example.
Australia has also imposed stricter air cargo security requirements, affecting European and CIS-based air cargo shippers, following the initiatives of the US and Canada.
We have been subject to several mandatory changes including the Import Control System 2 (ICS2) in the EU which was one of the first to make sending Harmonized Commodity (HS/HCC) codes mandatory.
Although having increased regulation and compliance can become complex, it is good to remember that such requirements will increase transparency for ensuring safe and secure transportation chains while also pushing the industry forward by digitalising transportation data. It will be a joint effort for the whole industry to find solutions together with the regulators that are feasible and won’t disrupt the supply chain needlessly. Finnair Cargo is participating in multiple joint business forums to support this development.
With this in mind, it is important that we keep abreast of the forces likely to shape the industry as we move into 2025.
Part-Two of our interview with Anna-Maria Kirchner will be released soon. In it she discusses how Finnair Cargo is leveraging digitalisation to optimise efficiency, how it is dealing with the rise of e-commerce demand, and how global economic conditions can affect the carrier’s operations.
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