The airline industry as a sector is very sensitive to cyclical fluctuations in the global economy as well as in national economies. While an airline's earnings logic is based on people's need to travel for work and leisure as well as on cargo carriage, it is also part of the infrastructure of the national economies of its operating area.
Aviation is a significant industry for Finnish society and the national economy. The accessibility provided by airline traffic is a necessity for Finland's global competitiveness and its economic impact is considerable; aviation is estimated to account for 3-5 per cent of GDP, employment and tax revenue. Finnair's effective Asian strategy is a key element of the GDP contribution of aviation and its impact is estimated at 1-2 billion euros.
Profitability in a highly competitive industry that is sensitive to cyclical fluctuations requires structural changes, which Finnair, like other airlines, is implementing. During 2011, the company developed Career Gate, a concept to help Finnair personnel find employment as quickly as possible when it is necessary to reduce staff. Significant changes in the company's operations, deeper alliances and an increase in cost-effectiveness in all operations are required in order to achieve the planned cost reductions. These measures mean big changes to the company's personnel, and personnel reductions cannot be avoided.