newstodate.aero
Feb 06, 2014 (newstodate): The EU Commission has deepened its probe into Estonian Air that was initialed in February 2013 and expanded in April.
The Commission has thus opened an in-depth investigation to verify whether the plans of Estonia to grant 40.7 mio euro state aid for the restructuring of the national flag carrier Estonian Air is in line with EU state aid rules.
The Commission will in particular assess whether the airline's restructuring plan is suitable to restore the company's long term viability and to offset the distortions of competition created by the state support.
The Commission has doubts whether the restructuring plan is capable of ensuring that Estonian Air will become viable without continued state support and whether the airline will be able to meet the challenges that the air transport sector will likely face over the next years.
It is also uncertain whether the proposed capacity reduction through the cancellation of routes is sufficient to compensate for the distortions of competition created by the state support.
The Commission also has concerns that the contribution of Estonian Air to the costs of its restructuring may be insufficient.
The Commission has thus opened an in-depth investigation to verify whether the plans of Estonia to grant 40.7 mio euro state aid for the restructuring of the national flag carrier Estonian Air is in line with EU state aid rules.
The Commission will in particular assess whether the airline's restructuring plan is suitable to restore the company's long term viability and to offset the distortions of competition created by the state support.
The Commission has doubts whether the restructuring plan is capable of ensuring that Estonian Air will become viable without continued state support and whether the airline will be able to meet the challenges that the air transport sector will likely face over the next years.
It is also uncertain whether the proposed capacity reduction through the cancellation of routes is sufficient to compensate for the distortions of competition created by the state support.
The Commission also has concerns that the contribution of Estonian Air to the costs of its restructuring may be insufficient.