newstodate.aero
Jul 01, 2015 (newstodate): Estonian Air is fighting to keep afloat until the outcome of the ongoing EU probe into alleged state aid in former years.
If the verdict frees Estonian Air from having to pay back the state aid which would lead to an immediate filing for bankruptcy, a private company, the Estonian Infortar Group will acquire all shares in the carrier, including the 10 percent stake still held by the airline's former major shareholder SAS.
Estonian Air's report on 2014, just released, shows a decrease in the airline's total revenue by three percent y-o-y, compared to 2013, operating loss accrued to 6.708 million euro, while the year's net loss amounted to 10.405 million euro.
-The year 2014 was very demanding for the airline, as we faced increased competition on our Baltic and Scandinavian markets, and also the instability on the eastern routes impacted heavily our operating result, says Jan Palmer, Estonian Air CEO.
Among the burdens carried by Estonian Air is excess aircraft in the fleet now comprising three Bombardier CRJ900 and four Embraer E-170aircraft.
Estonian Air has tried various ways to relieve itself of the Bombardier fleet, last opening a tender for sale/lease-back of the aircraft.
If the verdict frees Estonian Air from having to pay back the state aid which would lead to an immediate filing for bankruptcy, a private company, the Estonian Infortar Group will acquire all shares in the carrier, including the 10 percent stake still held by the airline's former major shareholder SAS.
Estonian Air's report on 2014, just released, shows a decrease in the airline's total revenue by three percent y-o-y, compared to 2013, operating loss accrued to 6.708 million euro, while the year's net loss amounted to 10.405 million euro.
-The year 2014 was very demanding for the airline, as we faced increased competition on our Baltic and Scandinavian markets, and also the instability on the eastern routes impacted heavily our operating result, says Jan Palmer, Estonian Air CEO.
Among the burdens carried by Estonian Air is excess aircraft in the fleet now comprising three Bombardier CRJ900 and four Embraer E-170aircraft.
Estonian Air has tried various ways to relieve itself of the Bombardier fleet, last opening a tender for sale/lease-back of the aircraft.