FINNAIR CEO CONSIDERS IN-FLIGHT REFUELING FOR

UNCLAS HELSINKI 000061

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EAIR BEXP EIND MCAP FI
SUBJECT: FINNAIR CEO CONSIDERS IN-FLIGHT REFUELING FOR
FINNISH F-18S



1. (SBU) SUMMARY: Ambassador Ware called on Finnair CEO and
President Jukka Hienonen on January 16. Hienonen raised the
possibility of Finnair providing in-flight refueling for
Finland,s F-18 Hornet aircraft and mentioned Finnair,s
focus on routes to Asia while its North America traffic
decreases. Hienonen also commented on the need for the
Finnish workforce to adapt to meet the opportunities of
globalization. End Summary.

Tanking Up With Finnair? -- Finnair Considers F-18 Refueling
Proposal
-------------- --------------
(SBU) Hienonen said Finnair was considering a proposal from
the Finnish Defense Forces (FDF) to acquire several
multi-role aircraft that could periodically be leased to the
FDF for in-flight refueling of its F-18 Hornet aircraft.
Hienonen said the proposal would have to make fundamental
business sense to be seriously considered, despite the fact
the airline is 55.8 percent owned by the Finnish government.
When not in use by the FDF, the aircraft would be used by
Finnair on standard routes, possibly to carry cargo. The
Finnish press reports that Finnair would acquire two to
three multi-role aircraft, likely Airbus A330 multi-role
tanker transport (MRTT),for in-flight refueling and to
transport Finnish forces involved in international
peacekeeping or humanitarian efforts.

Flights to Asia Up, Flights to North America Sliding
-------------- --------------

3. (SBU) Hienonen commented on the rapid expansion Finnair is
making in Asia, while at the same time stiff competition and
transatlantic over-capacity is causing it to significantly
reduce its flights to North America. Hienonen said Finland
was simply "on the wrong side of Europe" for significant
traffic to North America, though it is on the "right side"
for flights to Asia. Finnair,s focus on Asia has resulted
in double-digit yearly growth since 2005.

Finnish Workforce Must Adapt To Globalization
--------------

4. (SBU) Hienonen noted the need for the Finnish workforce to
adapt to meet the opportunities of globalization and that too
many Finns were becoming too dependent upon the government
for support. Hienonen believes Finland,s strong economy has
created an environment in which many are "too well off" and
hence they are not willing to adapt in the future.
Assimilation of new workers in the Finnish workforce was also
cited by Hienonen as a challenge Finland will continue to
face.


5. (SBU) Comment: Acquiring an in-flight refueling capability
is an interesting consideration for the FDF, as it would
provide their military the ability to deploy offensive
weaponry (fighters with ground attack capability) beyond
Finnish borders, a step that Finland has been resistant to
take in the past. The Finnish F-18 Hornets are already
equipped for in-flight refueling; however, access to a
standing tanker force would allow for continuous pilot
certification and possible international operations in the
future. End comment.
WARE