The airline was established in December 2002 and started operations on 16 March 2003. Its cheap air fares were based on the fact that the e-tickets were only sold through Internet and phone. The airline claimed a successful beginning, as the passengers who formerly bought bus and train tickets now bought cheaper flights.
The president of the company was Peter Sevelius. The flight captains had been employed from Finnair. It had many celebrities as shareholders, such as the rally driver Juha Kankkunen. Its competitors included Finnair, Ryanair and Söder Airlines.
In January 2004, faced with the threat of the termination of its plane lease and operating license for unpaid debts, the financially ailing airline cancelled its flights to London and went into debt restructuring. On January 27, 2004, Flying Finn ceased all flights and prepared for bankruptcy. Over 20,000 passengers were left without tickets.
In August 2007, there was speculation by Keskusrikospoliisi (the National Bureau of Investigation) that there are financial irregularities due to the airline accounts, leading to seven former employees being accused of breaking bankruptcy laws.