newstodate.aero
Jun 20, 2013 (newstodate): The Estonian government will today deliver the long-awaited restructuring plan for Estonian Air to the scrutiny by the EU Commission, according to industry sources.
The result of the Commission's investigation into this plan will determine whether the Estonian state can transfer the remaining 12.1 mio euro of a 28.7 mio euro package to allow the carrier to repay loan commitments.
The earlier payment of 16.6 mio euro was authorized by the state without the prior consent by the EU Commission, leading to a warning that the ongoing bailout payments to Estonian Air may be finally deemed illegal.
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.
Should the verdict of the Commission require the carrier to repay the state aid to Estonia, Estonian Air would most probably face bankruptcy despite ongoing and successful efforts to turn the carrier around, cut costs, reduce staff, network and fleet.
But the government has recently extended the maturity of the loans in question till a decision has been made by the EU Commission, but not later than June 20, 2018
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 result of the Commission's investigation into this plan will determine whether the Estonian state can transfer the remaining 12.1 mio euro of a 28.7 mio euro package to allow the carrier to repay loan commitments.
The earlier payment of 16.6 mio euro was authorized by the state without the prior consent by the EU Commission, leading to a warning that the ongoing bailout payments to Estonian Air may be finally deemed illegal.
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.
Should the verdict of the Commission require the carrier to repay the state aid to Estonia, Estonian Air would most probably face bankruptcy despite ongoing and successful efforts to turn the carrier around, cut costs, reduce staff, network and fleet.
But the government has recently extended the maturity of the loans in question till a decision has been made by the EU Commission, but not later than June 20, 2018
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.