The last Estonian Air CEO, Jan Palmer, said the company is worth 5-10 million euros. The company must pay back aid worth 84 million euros, plus interest, to the state, after the European Commission ruled on Saturday that the aid was illegal. The company has stopped operations and will go into liquidation.
Saturday's decision means that the company must pay the money back. As it has nowhere near that kind of finances, the 24-year-old company will fold.
Palmer said on Saturday that the state may be able to salvage 5-10 million euros from Estonia Air.
Ahti Kuningas, Deputy Secretary General for Economic Development at the Ministry of Economic Affairs, said Estonian Air has two long-term financial commitments totaling around 10 million euros.
He said the company has already began procedures to end aircraft leasing contracts.
Economy Minister Kristen Michal said EA staff will be laid off, but there are openings at Nordic Aviation Group, which will take over from Estonian Air.
The government said it will release 6.2 million euros from reserve funds to cover ticket compensation.
Editor: J.M. Laats