Ansip: Estonian Air Must Table Balanced Business Plan Before Bailout (3)

1/3/2013 1:18 PM
Category: Economy

Prime Minister Andrus Ansip said Thursday that Estonian Air's future depends on whether it can come up with a business plan where cash flows are balanced and only then on the European Commission's decision on whether to allow a bailout.

Only once the airline no longer bleeds cash can state assistance, should the European Commission approve it, be considered, Ansip said at the Cabinet's weekly press conference.

Ansip provided no new information or signals on the course of negotiations with the commission.  

The bailout amount requested by airline officials, such as chairman of the supervisory board Erkki Raasuke, is between 50 to 70 million euros.

"The precondition for state assistance is that the company should have a business plan that would allow the company to operate without auxiliary assistance. Such a business plan has not been submitted to the Cabinet as of this time," he said.

The amount of state assistance would also be determined by negotiations, said the prime minister. "It depends on the employees and giving up leased planes. There are very many variables and to sum up it can be said the fate of  Estonian Air is not in the government's hands. It is in the hands of the company's employees and the European Commission," he said.


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