Analyzing geospatial and geopolitical influences on airline competition: A Finnair case study

Scott C. Ambrose and Ahmed F. Abdelghany

Transportation Journal, 2025, vol. 64, issue 1

Abstract: For many years Helsinki has served as a key air transport hub connecting Asia and Europe primarily through Finland's national carrier, Finnair. Yet, in February of 2022 the closure of Russian airspace ended the Siberian corridor, at least in the near term that had long served as the most efficient air transport pathway between Asia and Europe. This study examines Helsinki's historical role as a key transport hub within the theoretical context of geographic centrality and intermediacy. The optimum geospatial location of Helsinki relative to key Asian cities is explored through both marketing and operational advantages that Finnair once leveraged. The networked route structure of Finnair before and during the twin shocks of the global pandemic and subsequent Russian–Ukrainian conflict is juxtaposed against a comparison set of hub‐and‐spoke airlines yielding key insights about the evolving competitive dynamics in the region. Moreover, a key component of Finnair's Asian strategy, dubbed the 24‐h single aircraft roundtrip rotation, is elucidated with respect to its benefits for aircraft utilization and crew scheduling efficiency. This unique characteristic allows for a special expression of intermediacy that can serve as an accelerant in air transport hub development. Finally, the current challenges facing Finnair due to the geopolitical turmoil are placed within a managerial context and avenues for future research are offered.

Date: 2025
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https://doi.org/10.1002/tjo3.12035

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Persistent link: https://EconPapers.repec.org/RePEc:wly:transj:v:64:y:2025:i:1:n:e12035

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