Insurance company pulls plug on Estonian Air (1)
Insurance company Salva said it will no longer provide cover for clients of Estonian Air who wish to insure their flights for cancellations.
Salva's head of marketing, Urmas Ööbik, said that insurance works on a principle of providing cover for unexpected and unforeseeable actions, Eesti Päevaleht reported.
“If we take into account signals from the state and readiness for a negative decision by the European Commission, then this is no longer an unexpected and unforeseeable action,” he said.
He said the company calculated the risks of the Estonian Air receiving a red light from the Commission, which would near-automatically lead to bankruptcy. The state recently set up a company which would replace Estonian Air, if the Commission deems state aid to Estonian Air illegal.
Salva said all insurance contracts signed before October 7 are in full force.