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Sunday 18.02.2018 | Name days: Kintija, Kora
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Economy Minister: Two options facing Estonian Air

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Estonian Minister of Economic Affairs Juhan Parts said yesterday that there are two options for the state as a shareholder of Estonian national carrier Estonian Air.

„The first option is to succeed in facilitating the airline’s restructuring or increasing its efficiency. The second option is to cease all operations. I sincerely hope that it will be the first, optimistic scenario,” said Parts in an interview to Aktuaalne Kaamera evening news programme on ETV.

However, Parts said that bankruptcy remained also an option.

Commenting the airline’s announcement that it will lay off 146 people, Parts said that most of them are probably in high demand on the labour market, Bbn.ee reported.

If an airline is in trouble, one of the most problematic issues is always that people no longer dare to buy tickets which makes the airline’s situation even harder.

According to Parts, irrespective of which scenario will take place, passengers will not be affected. In any case, the national priority will be the sufficient number of connections, he said.

Meanwhile Jan Palmer, the new CEO of Estonian Air said that “the results shown by Estonian Air have been catastrophic. We cannot continue by losing 2.5 million euros a month. It would not work.”

He said that it was clear that the company needs a capital injection from the state and the precise figure will be known in a couple of weeks.

Speaking of the airline’s decision to lay off 146 employees, Palmer said that he hoped that people understand the situation and that it is a step that the company must take to survive. He did not rule out that such massive layoff would bring about a strike, but hoped that common sense will prevail. “People take it very seriously, but there are no plans about actions against the company,” he said, adding that the discussions with cabin crews and trade unions have been very pragmatic.

Palmer said that it was not yet clear who will be leaving Estonian Air.

“People do not yet know. Today we informed the employees for the first time. Now every department will sit down and talk and specify who will have to leave. It will take until December 3 and must be ready by December 4.”

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Leave a reply

  1. Yoyo says:

    To day Estonian .To morrow Air Baltic that is loosing much more money .Fly Ryannair much more safer and cheaper.

    Thumb up 0 Thumb down 0

  2. mike says:

    Merger with airBaltic! All Baltic states should be part of Baltic Airlines a.k.a
    airBaltic. You need to be big enough to compete against ryanair or other low cost airlines. Otherwise there is no hope for the future.

    Thumb up 0 Thumb down 0

  3. FR says:

    How long the governement will fullfill the bottom less pit that is Airbaltic.Nobory knows. Estonian are more cleaver they let die the lame duck Estonian Air

    Thumb up 0 Thumb down 0

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