Airline's Insurance Coverage Fails to Keep Up With Danish Sales
An oversight caused brief embarrassment for Estonian Air after Denmark's travel insurance fund filed a police report in which the national carrier was named as not having enough coverage to do business in the travel sector in Denmark, Äripäev reported.
The Travel Guarantee Fund, with which all tour operators must be registered in order to operate in the country, said Estonian Air was one of several companies that had not filed a deposit.
The airline stood out because the other two companies named were relative unknowns, possibly fly-by-night operators. Such companies usually get a cease and desist letter and then often shut down, said Birgitte Fjeldoff, director of the Fund, in the story carried by Äripäev.
Estonian Air confirmed the report. Estonian Air's public relations director Ilona Eskelinen said Estonian Air filed an application with the Danish travel insurance fund in September 2011 and that the company secured a letter of guarantee from Swedbank.
"The Danish travel insurance fund did not accept our guarantee, or more precisely the form of the guarantee, which was linked to sales forecasts that are lower. As a result, we could not complete the registration process," Eskelinen said.
She said sales to Denmark had been much better than planned.
Estonian Air has reached an agreement with the Travel Guarantee Fund, and the matter should be resolved next week, Äripäev said.
Kristopher Rikken