newstodate.aero
Apr 17, 2013 (newstodate): The EU Commission has announced the extension of its ongoing inquiry since February 2013 into the Estonian state's repeated financial aid packets to keep Estonian Air flying.
The inquiry will now also include the decision by Estonia on February 28 2013 to increase a previous rescue loan by 28.7 million euro.
On that date, Estonia decided to increase the rescue loan by 28.7 mio euro, of which 16.6 million have already been paid to Estonian Air.
Estonia considers that the original 8.3 million euro loan was set to keep Estonian Air running through March 31, 2013, and that the airline needs additional resources to survive thereafter.
The Estonian authorities contend that most of the additional loan, i.e. 23.8 million out of 28.7 million euro, is needed to finance urgent structural measures that should enable Estonian Air to implement certain aspects of the proposed restructuring, to downsize the business and minimise losses immediately.
The Commission will now investigate whether the measure is in line with EU state aid rules.
In the meantime, the latest deadline for Estonian Air to deliver its long-awaited restructuring plan to the government is tomorrow, April 18, 2013.
The restructuring plan was originally slated for completion by January 31, 2013, but later delayed till February 21 - when it was again decided to postpone the date by another week due to the announcement by the EU Commission of the launch of an investigation into alleged illegal and repeated state-aid for Estonian Air.
The inquiry will now also include the decision by Estonia on February 28 2013 to increase a previous rescue loan by 28.7 million euro.
On that date, Estonia decided to increase the rescue loan by 28.7 mio euro, of which 16.6 million have already been paid to Estonian Air.
Estonia considers that the original 8.3 million euro loan was set to keep Estonian Air running through March 31, 2013, and that the airline needs additional resources to survive thereafter.
The Estonian authorities contend that most of the additional loan, i.e. 23.8 million out of 28.7 million euro, is needed to finance urgent structural measures that should enable Estonian Air to implement certain aspects of the proposed restructuring, to downsize the business and minimise losses immediately.
The Commission will now investigate whether the measure is in line with EU state aid rules.
In the meantime, the latest deadline for Estonian Air to deliver its long-awaited restructuring plan to the government is tomorrow, April 18, 2013.
The restructuring plan was originally slated for completion by January 31, 2013, but later delayed till February 21 - when it was again decided to postpone the date by another week due to the announcement by the EU Commission of the launch of an investigation into alleged illegal and repeated state-aid for Estonian Air.