Finferries and Åland Islands government to establish joint shipping company Axferries

Finferries, the state-owned ferry operator in mainland Finland, has initiated discussions with the Åland Islands government to establish a joint shipping company. The new entity will be named Ålands Skärgårdsrederi Ab, and its marketing name will be Axferries. The Åland Islands government will hold a 50% stake in the new company, with Finferries owning the other half.

The merger initiative gained momentum last summer when Nordic Jet Line, which primarily operated in Åland waters, filed for bankruptcy during the peak summer season. Ansgar Ab, a subsidiary partially owned by Finferries, stepped in to manage operations and quickly organized transport services. Håkan Fagerström, CEO of Finferries and chairman of Ansgar Ab, recounted, “We received a call on Friday and by Monday we were already managing the traffic. It was almost like magic.”

A six-month agreement was established to compensate for Nordic Jet Line’s routes, set to expire in January.

Following the summer’s operations, communication between Finferries and the Åland Islands government has intensified, fostering mutual trust, Fagerström noted. There’s now consideration of having one strong service provider in the market, with route tenders continuing as before.

In the Åland Islands, the model of government-owned ferries has been in place for years, with operations regularly tendered. However, discussions are currently underway regarding potential changes to future tender structures.

There has been some opposition to the joint venture. Veronica Thörnroos, a former regional councilor and leader of the newly formed Pro Åland party, has raised concerns over safety and control, questioning the motivations behind the merger. In contrast, Fagerström emphasized the benefits of consolidation, including operational efficiencies and cost savings, especially in maintaining shared resources.