State to hang onto air carrier

  • 2005-11-09
  • From wire reports
TALLINN - The Estonian government has decided that it would not sell its remaining stake in Estonian Air considering the company's strong growth position.
Despite significantly tougher competition, Estonian Air has a firm position on the market, Cabinet ministers found.

Along with expanding and increasing operation volumes, Estonian Air has continued operating at a profit, which is the exception rather than the rule in the international aviation sector in recent years, the government's press service said.

"Considering the aviation company's financial situation and future outlook, the government does not think it expedient to sell its holding. The Cabinet may return to this subject in the future if a concrete offer is made and it will be advantageous to the state to sell the shares," the government said.

The state does not rule out a sale at some point in the future.

Estonian Air is 34 percent owned by the state, 49 percent by the SAS Group and 17 percent by Cresco, an investment company.