newstodate.aero
Apr 15, 2014 (newstodate): Estonian Air has published some figures on its operational performance during the first three months of 2014 - while shedding little light on its actual progress.
Under its tightly cut schedule, the airline has seen its volume of passengers down by nine percent, y-o-y, to 110,666 passengers during the first three months of 2014, while the number of flights was down by 18.1 percent, y-o-y.
The carrier's load factor has thus increased significantly on the flights operated with five of the seven aircraft currently in the fleet, leaving two redundant aircraft to seek any cost-covering revenues from ad-hoc and charter flights pending the expiry of their lease by end of 2015.
The carrier claims that the operating results of the first quarter are in line with the restructuring plan adopted by the Estonian government and submitted to the European Commission for approval.
-Estonian Air is well on track with its restructuring plan, nevertheless it is vital that the chosen path is followed vigorously so that Estonia's national airline is successfully turned into the track of sustainability, says Jan Palmer, Estonian Air CEO.
-In order to meet the market demand we are currently witnessing, Estonian Air has increased the number of flights to most of its direct destinations like Amsterdam, Brussels, Stockholm, Oslo, Moscow, St Petersburg and Vilnius, while due to uncertain situation in Ukraine we have adjusted our time table on the TallinnKiev route, says Mr Palmer.
Looming on the horizon is still the outcome of an investigation by the EU Commission to verify if a state grant in December for a 8.3 mio euro loan to Estonian Air falls within acceptable limits.
Should the verdict of the Commission require the carrier to repay the state aid, Estonian Air would most probably face bankruptcy despite its ongoing efforts to turn the carrier around, aiming at a return to profitability in 2014.
If the verdict supports Estonian Air, the carrier would be in shape for the state to sell part of its stake to another party.
Under its tightly cut schedule, the airline has seen its volume of passengers down by nine percent, y-o-y, to 110,666 passengers during the first three months of 2014, while the number of flights was down by 18.1 percent, y-o-y.
The carrier's load factor has thus increased significantly on the flights operated with five of the seven aircraft currently in the fleet, leaving two redundant aircraft to seek any cost-covering revenues from ad-hoc and charter flights pending the expiry of their lease by end of 2015.
The carrier claims that the operating results of the first quarter are in line with the restructuring plan adopted by the Estonian government and submitted to the European Commission for approval.
-Estonian Air is well on track with its restructuring plan, nevertheless it is vital that the chosen path is followed vigorously so that Estonia's national airline is successfully turned into the track of sustainability, says Jan Palmer, Estonian Air CEO.
-In order to meet the market demand we are currently witnessing, Estonian Air has increased the number of flights to most of its direct destinations like Amsterdam, Brussels, Stockholm, Oslo, Moscow, St Petersburg and Vilnius, while due to uncertain situation in Ukraine we have adjusted our time table on the TallinnKiev route, says Mr Palmer.
Looming on the horizon is still the outcome of an investigation by the EU Commission to verify if a state grant in December for a 8.3 mio euro loan to Estonian Air falls within acceptable limits.
Should the verdict of the Commission require the carrier to repay the state aid, Estonian Air would most probably face bankruptcy despite its ongoing efforts to turn the carrier around, aiming at a return to profitability in 2014.
If the verdict supports Estonian Air, the carrier would be in shape for the state to sell part of its stake to another party.