Estonia stays afloat-SAS saves the day

Jan 20, 2009
TBT staff

The Estonian carrier continues with help from SAS and is set to increase flights.

TALLINN - Estonian Air is still flying high among Baltic carriers thanks to loans from controlling share holder SAS airlines.

The short-term loans will be sued to pay salaries, purchase fuel as well as purchase new aircraft.

SAS has given the Estonian airline monthly short-term loans of around 2 million euro, reported Marika Priske, secretary general of the Economy and Communications Ministry.

According to Aripaev daily's information, SAS most recently loaned Estonian Air 2 million euro. The Estonian carrier borrowed at least as much from the parent company last fall.

“I know that a new loan of roughly the same size is about to arrive soon,” said Priske, who explained that the majority of Estonian Air's own working assets were used as the first installment on three brand-new Bombardier aircraft to be delivered in spring 2009.

One new aircraft costs approximately 430 million kroons (27.5 million euro).

“The short-term loans are used to pay employees' salaries, buy fuel and maintain the aircraft. The board has made an analysis which shows that Estonian Air hopes to climb out of the red three months after putting the new aircraft into service,” Priske said.

Estonian Air will receive their first 90-seater CRJ900 NextGen type aircraft this April.

Ilona Eskelinen, a spokeswoman for Estonian Air, said that no concrete routes had been fixed for the aircraft but the first flight with the new aircraft would be made on the Tallinn-Brussels line on May 11.

The remaining two aircraft will arrive in Estonia in May and June.

The present Estonian Air fleet consists of two 142-seating Boeing 737-300 aircraft and four 118-seater Boeing 737-500 aircraft. The fleet of Estonian Air Regional consists of two 33-seater SAAB 340 aircraft.

SOCIAL BOOKMARKS:   Delicious   Digg   Reddit   Ask   Facebook   MrWong   Netvouz