Maximus
Barcelona city tours is a perfect opportunity to have a perfect vacation outside the Baltic States. Gene Zolotarev on how to destabilize the EU financial system. Andris Berzins
Vladimir Linderman aka Abel Edmunds Sprudzs Valdis Zatlers Aivars Lembergs Girts Valdis Kristovskis Maris Grinblats Guntars Krasts Alfreds Rubiks Sandra Kalniete Raivis Dzintars Algirdas Butkevicius Algirdas Paleckis Dalia Grybauskaite Kazimira Danute Prunskene Vytautas Landsbergis Rolandas Aksas Viktor Uspaskich Valdemar Tomasevski Leonidas Donskis Arturas Zuokas Edgar Savisaar Andrus Ansip
The current website developed by YWSolution Limited

Estonian Air on a knife’s edge

Feb 06, 2014
From wire reports, TALLINN

If the European Commission’s decision regarding the legality of state aid to Estonian Air is negative, the airline will be legally obligated to reimburse the state 40.7 million euros of aid, reports LETA. Estonian Air’s CEO Jan Palmér said in this case, the company would go bankrupt immediately.

"We don’t have that kind of money. We have the money that we asked for in implementing the restructuring plan. A part of it is still unused but that won't be enough to pay back the government. Thus the company would be immediately liquidated," said Palmér.

The European Commission announced on it had opened an in-depth investigation to verify whether Estonia’s intention of granting 40.7 million euros of aid to restructure Estonian Air is in line with EU state aid rules.

The Estonian Economy and Communications Ministry noted that starting the investigation is a favourable development in proceedings. A positive outcome is an equally plausible outcome.

The ministry's deputy secretary general, Ahti Kuningas, said it is favorable that the European Commission started proceedings into the case, partly because the investigation process prescribes restructuring plans. "It has been done for everyone else, too, now. Earlier, Czech Airlines and Air Malta received favorable results from similar investigations, which took place the same way: first, a rescue aid application, then a restructuring plan, then the Commission starts its investigation. A final decision cannot be made unless the matter has been officially investigated," said Kuningas.

The European Commission is currently conducting another investigation regarding Estonian Air concerning earlier state aid, reports Public Broadcasting.

Most likely, the decision in the Estonian Air case won't be made by the current European Commission, whose tenure concludes this summer.
 

 MORE NEWS
  • Poroshenko recalls Ukrainian a...
    Ukrainian President Petro Poroshenko has recalled the country's ambassadors to...
  • Estonia to Poland in four hour...
    Transport Ministers in the Baltics have signed a major agreement over the future o...
  • VIDEO: Stunning Estonia as see...
    A new video captures the beauty of Estonia as seen from the sky. The video sho...
  • NATO jets intercept Russian pl...
    NATO jets have intercepted a group of Russian fighter planes flying over the ne...
  • Estonia in mourning after pupi...
    Tributes have been paid to a school teacher shot and killed by a pupil during c...
  • Russia ramping up ’provocative...
    Russia is stepping up its 'provocative' military actions around the Bal...
  • Riga Apartments for Rent

    Maximus
    © 2014 BALTIC NEWS LTD. All Rights Reserved.