Struggling airliner to receive €12 million cash boost

  • 2014-11-19
  • From wire reports, TALLINN

Estonian Air (photo: creative commons)

Estonia's struggling national carrier Estonian Air is set to receive a 12 million euro loan from the state.

The application was submitted to the Ministry of Finance by the company and Estonia's Economy Ministry, Public Broadcasting reports.

The funding boost is a third installment from a credit approved earlier. The firm has received a total of 57 million euros in state funding since 2009.

Meanwhile, the European Commission is analyzing the legality of state aid granted to Estonian Air. A negative decision would put the airline in a very difficult situation.

In October, it emerged that Estonian Air could be sold to Infortar, the largest shareholder of Tallink, and the state believes that it significantly increases the likelihood of a positive decision.

(Edited by Rayyan Sabet-Parry)