newstodate.aero
May 11, 2010 (newstodate): The Estonian state and SAS have agreed on the terms for a change in the ownership of Estonian Air.
On May 10, 2010, the two parties signed a LoI and an agreement will be signed shortly, after which details will be published.
SAS now owns 49 percent of the stakes in the airline, with the Estonian state, the Estonian state 33 and the investment bank Cresco 17 percent.
Unofficial sources say that the deal will entail a large infusion of Estonian state capital into Estonian Air, proportionally diluting the shares held by SAS and Cresco.
With state majority ownership, the strengthened Estonian Air will benefit from continued cooperation with SAS, and be in a position to finally take delivery of the three ex-factory CRJ900 NextGen to replace most of its current fleet of six Boeing 737 aircraft - a process long overdue because of uncertainty about the airline's future ownership, which made financing of the aircraft difficult.
Through this manoeuvre SAS retains its Estonian Air stake that was otherwise put up for sale to release much-needed capital as stated in the SAS Group's latest annual report.
On May 10, 2010, the two parties signed a LoI and an agreement will be signed shortly, after which details will be published.
SAS now owns 49 percent of the stakes in the airline, with the Estonian state, the Estonian state 33 and the investment bank Cresco 17 percent.
Unofficial sources say that the deal will entail a large infusion of Estonian state capital into Estonian Air, proportionally diluting the shares held by SAS and Cresco.
With state majority ownership, the strengthened Estonian Air will benefit from continued cooperation with SAS, and be in a position to finally take delivery of the three ex-factory CRJ900 NextGen to replace most of its current fleet of six Boeing 737 aircraft - a process long overdue because of uncertainty about the airline's future ownership, which made financing of the aircraft difficult.
Through this manoeuvre SAS retains its Estonian Air stake that was otherwise put up for sale to release much-needed capital as stated in the SAS Group's latest annual report.