Future of subsidized Pärnu Airport in question after two-year standstill
While Pärnu Airport hasn't caused major losses for owner Tallinn Airport — thanks to subsidies from the state and city — its future is under scrutiny. With no flights operating for the past two years, the City of Pärnu says it's time to find a new solution.
Last year, Pärnu Airport earned just €200,000 in revenue against €1.5 million in costs.
"Pärnu Airport doesn't actually cause losses for Tallinn Airport because the difference is paid by the City of Pärnu," not Tallinn Airport board member Riivo Tuvike.
However, Tuvike acknowledged that the current funding model may not be sustainable for either the city or the Estonian state, adding that regional airports, Pärnu included, require national decisions.
"Either Pärnu Airport is strategically important to the Estonian state or it's not," he said. "And if it is, then all of Pärnu Airport's costs should be covered, investments included."
The City of Pärnu has contributed €200,000-300,000 annually to cover the local airport's expenses. This support was paid based on the expectation of functioning air traffic, which has since ceased.
"The agreement was made with the understanding that air service would begin, and the City of Pärnu was prepared to take on this obligation with the knowledge that air links would operate from here with nearby countries — with [the cities of] Helsinki and Stockholm," recalled Pärnu Mayor Romek Kosenkranius.
During the first few years, that was indeed the case.
"Now that this is the second year without flights, we think it's time to find new solutions," he said.
The mayor said the city is open to alternatives, including possibly relinquishing operating rights for a period of time. "Some solutions must be found to improve financial viability," he stressed.
The Ministry of Climate says Pärnu is the only regional airport in Estonia without any active air traffic, and the only one whose existence may be up for debate.
"Major investments have been made there with a long-term view in mind," acknowledged Sander Salmu, deputy secretary general of the Ministry of Climate. As a result, it has turned into an issue of maintaining the airport or writing those investments off. "So now the question is whether to keep the airport running this way or not."
Both the ministry and Tallinn Airport consider privatization a possible path forward.
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Editor: Johanna Alvin, Aili Vahtla
