newstodate.aero
Mar 22, 2013 (newstodate): Despite financial turmoil and in danger of having to return state aid if found in conflict with EU competition rules, a defiant CEO of Estonian Air maintains a positive outlook for the ailing carrier.
Speaking at yesterday's press conference presenting the 2012 annual report, Mr Palmer reportedly claimed that the turnaround at Estonian Air is on track and the state-owned airline is planning to stop making loss already in summer.
He also said that Estonian Air would be able to sustain its operations with further state aid.
Anyhow, in 2012 Estonian Air's revenue reached record-high levels at 91.5 million euro.
The company's net operational losses was 35.8 million euro.
Together with one-off costs, notably impairment on aircraft, the net loss for 2012 reached 49.2 million euro.
The airline must now deliver its final restructuring plan for scrutiny by the government by April 18, 2013, and it will then be forwarded to the EU Commission for its assessment of adherence to EU regulations on state-aid to airlines.
In the meantime Estonian Air is struggling to re-size its aircraft fleet from 10 to only five aircraft necessary for operating the 10 routes deemed crucial for survival.
Speaking at yesterday's press conference presenting the 2012 annual report, Mr Palmer reportedly claimed that the turnaround at Estonian Air is on track and the state-owned airline is planning to stop making loss already in summer.
He also said that Estonian Air would be able to sustain its operations with further state aid.
Anyhow, in 2012 Estonian Air's revenue reached record-high levels at 91.5 million euro.
The company's net operational losses was 35.8 million euro.
Together with one-off costs, notably impairment on aircraft, the net loss for 2012 reached 49.2 million euro.
The airline must now deliver its final restructuring plan for scrutiny by the government by April 18, 2013, and it will then be forwarded to the EU Commission for its assessment of adherence to EU regulations on state-aid to airlines.
In the meantime Estonian Air is struggling to re-size its aircraft fleet from 10 to only five aircraft necessary for operating the 10 routes deemed crucial for survival.