Airport, Estonia, Investments, Legislation, Transport

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 12:17

Estonia injects large amount of money in 2 transport firms

BC, Tallinn, 28.09.2015.Print version
The Estonian government decided this week to create two new state-owned companies and will allocate over 72 million euros to set them up, Äripäev.ee/LETA reports.

The aim of OÜ Transpordi Varahaldus (Transport Asset Management) is to serve as an investment company that finances and manages investments in fixed assets in the transport sector, including rental and acquisition of assets. The government will make a contribution of 32 million euros in the company. The company will be managed by Kristen Michal-led Economy and Communications Ministry.

 

The government also establishes AS Nordic Aviation Group, whose main objective is the formation of an aviation group and inside the concern, reshaping the management structure of entrepreneurs to comply with modern aviation principles. The state's payment in the company is 40.7 million euros. This company will also operate under the Economy and Communications Ministry.

 

In mid-September it emerged that the government plans to create two new companies instead of the current national carrier Estonian Air, in case the European Commission declares the state aid granted to the airline as forbidden. The European Commission discusses for the second year whether the Estonian national airline has received forbidden state aid. If the Commission decides that Estonian Air has received forbidden state aid, it must repay the amount received. This would automatically mean the company's bankruptcy and the end of the activities. When the decision comes, is not known. Therefore, the Economic and Communications Ministry has compiled a backup plan.

 

In this case, the activities of the current Estonian Air are consolidated in one company and assets, primarily plane contracts, would be consolidated in another. Michal has said that this gives certainty to Estonian Air's staff, clients and the Estonian economy as a whole. "If a positive decision comes (from the European Commission ed.), flying can continue, if a negative decision comes, there is a new airline, which is based in Tallinn. Estonian pilots and plane crews can be used, and the interests of the Estonian people and the economy can be taken into consideration," said Michal then.






Search site