Estonian Air Announces 'Network Carrier' Strategy
Estonian Air chairman Joakim Helenius gave the public some long-awaited insight into the company's business strategy on September 29, announcing that airline will become a network carrier by 2013.
Speaking at an international tourism conference in Tallinn, Helenius said that the company would move away from its current business model as a regional carrier, adopting the more attractive network carrier model that would allow it to expand its route network and attract more tourists, rus.err.ee reported.
The network model, used by the world's largest carriers such as British Airways, Lufthansa and Japan Airlines, employs a traditional hub-and-spoke system for scheduling flights and entails a high rate of connectivity.
"The new business model will offer the population of Estonia increased opportunities for travel, as well as significantly improve the attractiveness of Estonia through the development of tourism and international economic relations," Helenius said.
He also said that current trends in the airline industry have created the opportunity to turn Tallinn Airport into a regional transport hub, provided passenger numbers can be increased.
Helenius said, however, that the new business model would require significant investment by the state. He did not name a figure.
This week Estonian Air management is due to present its strategy proposals to the Ministry of Economic Affairs and Communications, who will make a decision at the end of October.
Steve Roman