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Palo costs Estonian Air 65,000 euros

Mar 24, 2014

Urve Palo statements describing the likelihood of bankruptcy of the national carrier Estonian Air cost the carrier around 65,000 euros, reports Eesti Päevaleht.

The company sold around 500 tickets less than planned after Palo's words. If earlier data on ticket fees is taken into consideration, that Estonian Air earns an average of 130 euros per one passenger, it can been estimated that one sentence of Palo cost several dozens of thousands of euros.

Social Democratic MP Urve Palo said on Thursday that during the seven-year term of office of outgoing economy and communications minister Juhan Parts, Estonian Air has in essence been led to the verge of bankruptcy and there is high likelihood that the European Commission won't allow granting state aid to the company either. "Thus we can assume that it will go bankrupt. I don't want to cause panic but as a minister I have to be ready that the state aid permit won't arrive from the European Commission," Palo told Delfi Ärileht.

After that, confused clients of the carrier jammed up the phone lines of the company, demanded money back for tickets they already bought and cancelled bookings, reports LETA.

Urve Palo apologized on Friday that her words about the likelihood of bankruptcy of Estonian Air made clients concerned and assured that when she starts working as the minister, she supports preserving the aviation company.
 

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