New Finnair CEO Jukka Hienonen gets his wings

The new CEO wants national carrier to remain under Finnish ownership

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By Teija Sutinen
     
      The Airbus A320 is ready for takeoff at the end of runway 22, and Jukka Hienonen, the new CEO of Finnair, nestles into the pilot’s seat. The control tower of the Helsinki-Vantaa Airport can be seen out of the cockpit window to the left.
      Hienonen adjusts the seat and checks the gauges. It is time to go. Hienonen sets the throttle to maximum power, and the plane begins to accelerate.
      “Raise the nose when I say ‘rotate’,” says co-pilot Pekka Peräkylä.
      “Rotate! Lift it now!”
      The wheels lift off the tarmac and the jet rises steadily. We fly above Vantaa, then Espoo, and soon the Gulf of Finland is shimmering underneath us. Hienonen is flying!
      The weather is good, with unrestricted visibility and a crosswind of only five metres per second. The capital city can be seen below us in its lush, summer greenness.
     
It is not really summer outside; it is actually rather a dark December morning. Hienonen is using an A320 flight simulator at the Finnair Training Centre in Vantaa. The new CEO is being introduced to the company.
      The plane has barely reached 1,000 metres when Hienonen begins to turn back. Peräkylä warns the passengers that the landing may be somewhat bumpy.
      Hienonen has to slightly adjust his angle of descent, but after that the approach goes smoothly. “It will be fine if you just keep going like this,” Peräkylä keeps saying.
      The anticipated heavy thump against the tarmac never comes. The landing is unusually smooth for a first-timer, Peräkylä compliments his boss. Hienonen does not retain his concentration to the very end, since the plane sways and bounces as it exits the runway.
      Outside the simulator, the head of the flight administration team Hannes Bjurström and a number of the training centre’s management personnel are waiting. The schedule of the introductory tour is tight, and the simulator must be made ready for the paying customers.
      Along the long hallways are other simulators, including the tiny DC-9, in which a group of African visitors is surprised to learn that they are about to meet their host’s CEO.
      The pleasantly chatty Hienonen moves from one situation to the next, peeks into the simulators, shakes hands with the mechanics, asks questions and listens.
     
Jukka Hienonen, 44, has not worked for Finnair before this appointment, and has never run a listed company. In his previous job he managed the largest part of Stockmann - the department stores.
      Hienonen starts work as chief executive of Finnair on January 1^st, when his predecessor, Keijo Suila, retires.
      Several other companies are hiring chief executives in their forties. Aside from Finnair, for example YIT, KCI Konecranes, HK Ruokatalo, Alma Media, and Oriola-KD have decided to hire younger chief executives.
      It is time for the new generation to gain the confidence of the organisation.
     
The first few months are the most critical, especially for a CEO coming from outside the house.
      The past six months have been a peculiar period for Jukka Hienonen. He was named CEO of Finnair in June, but he continued working for Stockmann until the end of October. This is uncommon: usually executives who switch companies clear out their desks immediately, even if they are not starting to work for a competing firm.
      The training at Finnair began in November.
     
It is evident that Hienonen is used to sales and marketing, even at the training centre. He nods and asks questions in the right places, and listens actively, showing interest. He appears to be genuinely interested in people.
      The new boss immediately started writing a net diary, or blog, in the company’s intranet about his experiences in the company.
      In his blog he has, for example, criticised one unit, where everyone did not greet each other.
      “In a blog, one can communicate thoughts without any kinds of filters,” Hienonen says.
     
It looks like the table is already set for Hienonen when he enters the enters the Finnair management. He is not required to significantly change the course of the company - for example no huge budget cuts are needed, since Finnair is doing much better than most international airlines.
      The company has also recently made its largest investment ever. In December, Finnair decided to purchase more than ten Airbus aeroplanes for use in long-haul flights. Hienonen took part in closing the billion-euro deal, which will keep his hands tied for years to come.
      "Growth from Asia, business in Europe, getting home by evening. It is such a strong strategy that it need not be rewritten."
      Hienonen is aware that employees often expect something fresh from their new chief executive.
      "Well I do have some ideas I have been working on. Small steps. It is true that if one does not make changes in the beginning, the changes are easily never made at all."
     
Hienonen lacks the most knowledge about things having to do with flying and technical matters, and issues relating to the civil aviation authorities.
      "The CEO is in charge of everything, but the planes would continue to fly and be serviced normally, even without a CEO. One needs to trust certain key individuals. The chief executive has to keep the company going in the right direction, and to make sure that everyone knows which direction that is."
      Also the fact that the employees' interests are strongly looked after is new after a long career in the retail business. Seven labour unions operate within Finnair.
      "Some of the union leaders see the company’s situation more clearly, some see it less clearly. I do not wish to be mean or difficult, but I must point out one fact. In today’s intense competition, efficiency and productivity are always on the agenda, regardless of who is running the company," says Hienonen.
     
He believes that the guidelines for management are the same in every company. Therefore, a manager must have the courage to take a leap into the unknown. Familiarity with the basics guarantees survival.
      "The product needs to be satisfactory, the cash flow needs to be in order so that one can invest, and the debt must remain under control. The customer has to want the product, and the owners have to enjoy owning."
      Hienonen says that there is one thing in Finnair that he is highly committed to: Finnair is to remain independent and under Finnish ownership.
      "I am not interested in subordinating Finnair as a feeder to a larger airline. I do not intend to plan or further such aims. The foreign shareholders who accept this principle are welcome."
     
Helsingin Sanomat / First published in print 31.12.2005


Previously in HS International Edition:
  Finnair to update long-haul fleet with 12 new Airbus jets (8.12.2005)

TEIJA SUTINEN / Helsingin Sanomat
teija.sutinen@hs.fi