Daily: Estonian Air decision will be negative

(Siim Lõvi /ERR)
11/6/2015 12:47 PM
Category: Economy

A source from the European Commission told business daily Äripäev that the decision on whether state aid to Estonian Air was legal or not, has been already made and there are no good news for the state-owned airline.

“Although informed people have continued to say that they do not know what the decision will be, all signs point to, and information which has arrived at Äripäev from credible sources says that already next week, or to be more precise from Sunday, our blue-white iron birds will no longer fly, at least not in their same shells,” Äripäev said.

According to the daily, at least some of Estonian Air flights from Sunday have already been replaced.

The European Commission began an investigation in 2013 into Estonia bailing out Estonian Air. EU regulations state that nations can only finance companies on very strict conditions, as not to give anyone an advantage. Those rules also include financing only once every 10 years. The Estonian government has handed the company money on at least three occasions, although it maintains the transfers were part of one contract.

The aim of state financing is to get companies back on their feet and a viable restructuring plan is necessary. Estonian Air has, with the help of the Estonian state, returned to profit, although only in the summer months and not vast figures.

A decision is expected on Saturday.

J.M. Laats

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