newstodate.aero
Dec 18, 2014 (newstodate): Earlier expectations for confirming before year-end the sale of state-owned Estonian Air to Infortar, the major shareholder of the Estonian travel group Tallink will not be met.
One condition for the transaction to be carried through is a positive outcome of the ongoing investigation by the EU Commission of the disputed legality of state subventions in support of the air carrier.
If the verdict goes against Estonian Air, the loan must be repaid to the state, which would cut the carrier's life line.
The EU Commission initialed its probe into Estonian Air in February 2013, expanding it in April 2013 and again in February 2014.
The verdict is now expected by March 2015 after which Infortar will either conclude or abrogate the talks over future ownership of Estonian Air, depending on the outcome.
Talks over a sale of the carrier to the Estonian transport group Tallink's major shareholder with 36 percent of the stake were announced by the end of October 2014, and the Estonian Air Supervisory Council has approved of a revised restructuring plan on the basis of the potential agreement, after which the plan was forwarded to the EU Commission on October 31, 2014.
One condition for the transaction to be carried through is a positive outcome of the ongoing investigation by the EU Commission of the disputed legality of state subventions in support of the air carrier.
If the verdict goes against Estonian Air, the loan must be repaid to the state, which would cut the carrier's life line.
The EU Commission initialed its probe into Estonian Air in February 2013, expanding it in April 2013 and again in February 2014.
The verdict is now expected by March 2015 after which Infortar will either conclude or abrogate the talks over future ownership of Estonian Air, depending on the outcome.
Talks over a sale of the carrier to the Estonian transport group Tallink's major shareholder with 36 percent of the stake were announced by the end of October 2014, and the Estonian Air Supervisory Council has approved of a revised restructuring plan on the basis of the potential agreement, after which the plan was forwarded to the EU Commission on October 31, 2014.