The national air carrier is sacking its CEO, Tero Taskila, over deteriorating economic results, as the supervisory board steps down.
Jan Palmer will take over as CEO in November.
Outgoing supervisory board chairman Erkki Raasuke said the current management's strategy took risks that significantly hurt the company's financial results.
The carrier today reported a 20.2-million-euro loss in the first nine months of the year - nearly doubling its 11.2-million-euro loss during the same period of last year.
Losses in 2012 will likely turn out to be the heaviest in the company's history.
The new CEO and supervisory board will prepare a new operational plan, which it will present to the Ministry of Economic Affairs by the end of November.
It was a short stay for Taskila, who took up the position from Andrus Aljas in 2011. Taskila said then that he hoped to bring the company to profitability in 2012. The CEO, who previously worked for Air Baltic, had a monthly salary of over 30,000 euros last year - a subject of criticism for the Estonian public.
His successor, Jan Palmer, was born in Sweden and most recently headed the Danish carrier Cimber Sterling, which went into bankruptcy last year.
Prior to that Palmer was a board member for Sweden's cargo carrier Amapola Flyg, and before that he was the head of Skyway Group.