Estonian Air Threatens Closure of Island Route (5)

Published: 06.07.2011 11:37

Photo: Postimees/Scanpix

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In a letter sent to the Saare County government, Estonian Air said it would terminate the service on the Tallinn-Kuressaare route before its operating contract runs out if no deal on subsidies is reached by August.

"In that case service on the Tallinn-Kuressaare-Tallinn route will be terminated on September 1, 2011" Estonian Air's Chief Commercial Officer Rauno Parras wrote. According to Saarte Hääl, the airline has proposed two options to the county government after the latest tally of the route's monetary intake.

One way to continue flying to Saaremaa's capital would be increasing the subsidy amount from 1,996 to 4,048 euros per round trip flight. Another option would be to leave the amount per flight unchanged but increase the number of weekly round trips from seven to eight beginning from September.

The company, which launched a second domestic route, Tallinn-Tartu, in February, cited the growing cost of planes and crews as the reason for the ultimatum.

Commenting on the letter, Saare County governor Toomas Kasemaa said that the county government had already increased the amount of the subsidy this year to cover the surge of reasonable costs, and now wishes to hear additional explanations from the airline.

 

Erkki Sivonen

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Comments (5)

  • avatar

    knut_albers

    06.07.2011 13:01

    Close this route out then and Good Bye! As an Estonian tax payer, I disagree that any taxes are any longer used for live support measures of this de facto already bailed out, but bankrupt airline. If you can't sustain without subsidies, then you are on a default. Simple as that.

  • Saarlane

    06.07.2011 15:11

    Well Knut, as inhabitant of Saaremaa I have to disagree. Regular flights to Kuressaare are more than just one destination among others. This is part of structural policy as the subsidies for the ferry connections to the islands. You can find this in almost every western country and it is a good approach to make the living conditions for people from the remote areas better. So if Estonian Air is a state company it is one of their first duties to server the needs of Estonian taxpayers here.

  • ameeriklane

    06.07.2011 15:53

    I agree with Saarlane that this is actually a public transport issue, and they've subsidized the air and land route for residents for years. As I recall, the tender goes out for public bid and many companies bid on it. In the past, I think this route was run by Avies but most recently EA won the bid. So EA should fulfill the contract, and then the government can solicit bids for the next term and let's see who wins it then.

  • Background

    07.07.2011 09:09

    "The company, which launched a second domestic route, Tallinn-Tartu, in February, cited the growing cost of planes and crews as the reason for the ultimatum." And this is because charter for the currently used SAAB planes terminates by Sept. 1 and they plan to charter bigger planes. I guess not a good argument to get higer subsidies.

  • pillandia.blogspot.com

    15.07.2011 18:30

    It is the time to make a bridge, as well as in many Japanese islands, or as well as between Copenhagen and Malmoe.