Elimination of Estonian Air: obligations to passengers will be made

Elimination of Estonian Air: obligations to passengers will be made

The investigation of the European Commission's Directorate General for Competition found that the aid of government of Estonia's to the national airline Estonian Air gave the carrier an unfair advantage over its competitors, which is a violation of the rules of the European Union. 7 November the European Commission adopted a resolution on the recognition of government grants the airline illegal, and stop operations from November 8, 2016. Estonian Air is to refund to the state, according to EU Commission, €85 mln. plus interest. In addition, the carrier was refused to receive €40 mln. for business restructuring.

As the state is both the owner of the company and the main creditor, there will be no juridical problems, the company will be liquidated according to the procedure. In case of any claims from other companies associated with the activities of Estonian Air, such as the Tallinn Airport and other contractors, the state will consider each situation individually.

At the extraordinary meeting on Saturday, November 7, The Estonian government decided to allocate from the reserves of the Ministry of Economic Affairs and Communications €6.2 mln. to compensate passengers Estonian Air, departing after the 11th of November. In addition, all airline passengers who are currently abroad, will be transported by partners. Automatic re-booking of tickets will be finished on November 10, all the passengers will be notified.


Instead of Estonian Air a new national carrier will be created, AS Nordic Aviation Group. Currently the company is in the process of obtaining a license for air traffic.


According to the materials of Baltic-course.com
Photocredit Depositphotos.com