newstodate.aero
Aug 22, 2014 (newstodate): Estonian Air is walking a thin line towards break-even in 2015 and return to profitability from 2016.
Very much reined in by the requirements of the current restructuring plan covering the years till 2017, the carrier has seen revenues in this year's H1 down eight percent, y-o-y, while the net result of the company improved by 18 percent, which amounted to a five mio euro loss.
The current regional crisis in Russia/Ukraine relations have put its stamp on the carrier that transported eight percent fewer passengers in H1 2014, landing at 210,000 passengers.
Adding to the plights of the carrier is the growing competition in the Estonian market with several new carriers calling at Tallinn Airport.
Also hampering Estonian Air are four Embraer E-170 aircraft on a lease contract with Finnair expiring only by the end of 2015.
The carrier still performs up to its restructuring plan but has to do better to outweigh the impact from hardening competition and falling air rates.
In a recent amendment of the restructuring plan looking further ahead beyond 2017, Estonian Air is foreseeing the need to line up with "some bigger European airline".
Looming over it all is still the uncertainty from the ongoing EU probe into alleged illegal state loans to the airline, the outcome of which is still in the air.
Very much reined in by the requirements of the current restructuring plan covering the years till 2017, the carrier has seen revenues in this year's H1 down eight percent, y-o-y, while the net result of the company improved by 18 percent, which amounted to a five mio euro loss.
The current regional crisis in Russia/Ukraine relations have put its stamp on the carrier that transported eight percent fewer passengers in H1 2014, landing at 210,000 passengers.
Adding to the plights of the carrier is the growing competition in the Estonian market with several new carriers calling at Tallinn Airport.
Also hampering Estonian Air are four Embraer E-170 aircraft on a lease contract with Finnair expiring only by the end of 2015.
The carrier still performs up to its restructuring plan but has to do better to outweigh the impact from hardening competition and falling air rates.
In a recent amendment of the restructuring plan looking further ahead beyond 2017, Estonian Air is foreseeing the need to line up with "some bigger European airline".
Looming over it all is still the uncertainty from the ongoing EU probe into alleged illegal state loans to the airline, the outcome of which is still in the air.