newstodate.aero
Mar 23, 2015 (newstodate): Estonian Air is operating in a home market comprising only 1.4 inhabitants. It is a challenge to build a critical mass to sustain profitable operations on this basis.
This is a driving force behind Estonian Air's decision to set a new subsidiary with an own AOC to provide capacity to other airlines in the European markets.
-Already now we have closed several contracts as a capacity provider to airline customers including NextJet and Air Lituanica during the summer, convincing us that there is really a potential market in this segment, says Jan Palmer, Estonian Air CEO.
-We are now in the process of obtaining an own AOC for the new company that will have its own fleet of aircraft as requested by our future customers. But we will stick to the aircraft types already operating with Estonian Air to benefit from flexible use of our existing pilot corps and maintenance capability.
-The aircraft now in the fleet of Estonian Air will not be transferred to the new subsidiary, so we are opening an entirely new activity, says Mr Palmer.
In the fleet now are three Bombardier CRJ900 and four Embraer 170 aircraft, three of which are leased from Finnair.
The leasing period for the three Finnair aircraft is due to expire in September 2015, and Estonian will either seek a prolongation of the contract or source other similar aircraft from other operators.
This is a driving force behind Estonian Air's decision to set a new subsidiary with an own AOC to provide capacity to other airlines in the European markets.
-Already now we have closed several contracts as a capacity provider to airline customers including NextJet and Air Lituanica during the summer, convincing us that there is really a potential market in this segment, says Jan Palmer, Estonian Air CEO.
-We are now in the process of obtaining an own AOC for the new company that will have its own fleet of aircraft as requested by our future customers. But we will stick to the aircraft types already operating with Estonian Air to benefit from flexible use of our existing pilot corps and maintenance capability.
-The aircraft now in the fleet of Estonian Air will not be transferred to the new subsidiary, so we are opening an entirely new activity, says Mr Palmer.
In the fleet now are three Bombardier CRJ900 and four Embraer 170 aircraft, three of which are leased from Finnair.
The leasing period for the three Finnair aircraft is due to expire in September 2015, and Estonian will either seek a prolongation of the contract or source other similar aircraft from other operators.