newstodate.aero
May 14, 2013 (newstodate): The EU Commission is warning Estonia that the ongoing bailout payments to Estonian Air may be finally deemed illegal.
The latest payment of 16.6 mio euro was authorized by the state without the prior consent by the EU Commission, and the remaining 12.1 mio euro comprised by the same package should be withheld, the Commission points out.
In April 2013, the EU Commission 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 now also includes the decision by Estonia on February 28 2013 to increase a previous rescue loan by 28.7 million euro, 16.6 mio euro of which have thus been released, generating this renewed EU warning.
Earlier this month, the Estonian government agreed on a new 40 mio euro aid package to keep the airline flying during its restructuring phase.
As ever confident of its ability to survive, the carrier managed to end the first quarter and April 2013 in line with the restructuring plan targets set by the beginning of the year and expects to return to profitability in 2014.
The latest payment of 16.6 mio euro was authorized by the state without the prior consent by the EU Commission, and the remaining 12.1 mio euro comprised by the same package should be withheld, the Commission points out.
In April 2013, the EU Commission 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 now also includes the decision by Estonia on February 28 2013 to increase a previous rescue loan by 28.7 million euro, 16.6 mio euro of which have thus been released, generating this renewed EU warning.
Earlier this month, the Estonian government agreed on a new 40 mio euro aid package to keep the airline flying during its restructuring phase.
As ever confident of its ability to survive, the carrier managed to end the first quarter and April 2013 in line with the restructuring plan targets set by the beginning of the year and expects to return to profitability in 2014.