International Internet Magazine. Baltic States news & analytics
Monday, 26.01.2015, 10:23
Estonian Air revenues grew by 24% in H1, airline to take vigorous steps to reach profitability
Unit revenue (RASK) increased by 19%, informs LETA.
"In spring, we conducted a strong optimization of variable costs and in July we decreased the administration staff by 15%. We hope to sign a new collective agreement with our pilot and cabin crew unions to replace the expired agreements, which were officially terminated today. The new collective agreement should be based on changed market environment, and based on EU and Estonian regulations. We aim to reach 15% efficiency in crew utilization during the negotiations," said Tero Taskila.
"We have also adjusted our schedule for improved profitability. The effect of the listed activities will occur already in the end of this year," added Taskila.
"Regardless of the extremely difficult situation on regional and international aviation market, the management of Estonian Air is committed to reach profitability with the help of above-mentioned activities by the end of 2013," added Taskila.
IATA (the International Air Transport Association) downgraded their forecast of losses for the European airline industry to 1.1 billion US dollars, nearly double the previously forecast of 600 million dollars loss.
In order to increase openness and transparency, the company will start reporting its quarterly performance and economic results, the company's representatives said in a statement.
From August 1, 2012, France based cargo company provides Estonian Air cargo services which will greatly improve the airlines' potential of air freight, the airline said in a statement. The geographical position of Estonia favors transit between east and west.
The maximal use of aircraft's luggage room is an important additional source of income for Estonian Air and the airline is ready to respond to demands for cargo handling.
Through co-operation between Estonian Air and other international airlines the airline can offer our clients transport of goods all over the world.
"Due to restructuring of work and the increase of efficiency, our near-term priority is to outsource the functions of cargo department. That enables us to make a maximum use of our potential for handling cargo," noted Rauno Parras, the CCO of Estonian Air.
Concorde Aviation which is specialized on cooperation with smaller airlines operating with regional aircraft allows Estonian Air to better match goods with the right aircraft. "It is a dynamic and ambitious company. Their size allows them to be flexible and focus on the needs of our clients," said Rauno Parras
Concorde Aviation is based in Paris – France. It is managed and owned buy Alexander A. Wirth, President & CEO. The company offers services such as Air Cargo Management, GSA, Handling, Trucking, Aircraft Charters, and Offshore Helicopter Services.
Estonian Air flies currently to 24 destinations in Europe, Scandinavia and in CIS. The ticket prices start at 49.90 euros, if purchased from www.estonian-air.com, including all fees and taxes.