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International Internet Magazine. Baltic States news & analytics Thursday, 16.08.2018, 18:50

Magnetic MRO mulling leaving Estonia

BC, Tallinn, 08.08.2018.Print version
The aircraft maintenance company Magnetic MRO is considering relocating its base from Estonia because restrictions on hiring foreign workforce and the tax environment are hindering the company's growth, informs LETA/BNS referring to the Eesti Ekspress newspaper.

Board member Risto Maeots said that the company was experiencing major problems bringing foreign top specialists, customers and investors to Estonia.


"Our client was treated the same way as an illegal and was told 'Welcome to Estonia!'," Maeots told the weekly. "I was so ashamed of the Republic of Estonia that I spent the night at the passenger terminal with the client's pilots."


Maeots said that Magnetic MRO is not able to function without bringing in specialists from abroad. He said the company would like to use local specialists, but none are available as aircraft have never been painted or their engines serviced in Estonia before.


"If things go on this way, it is only a matter of time when I will make a proposal to relocate the headquarters of Magnetic MRO from Tallinn to somewhere where conditions are more amicable. Such as London or Shanghai. Somewhere where you can get a visa, where people are let to enter the country to work, where there are tax incentives, and soforth," the manager of the aircraft maintenance company said.


Magnetic MRO is an European Aviation Safety Agency (EASA) and Federal Aviation Administration (FAA) certified total technical care and asset management organization offering integrated MRO services. Revenue of Magnetic MRO grew 79% to 90.9 mln euros in 2017 and its profit increased 60.4% to nearly 4 mln euros. Of revenue, 21% was earned from basic maintenance services and 79% from other business operations, it can be seen from the company's annual report.


The company invested 8.1 mln euros in fixed assets, including the purchase of plane engines, during 2017. It operated with a workforce of 330 people and labor costs totaled 10.3 mln euros.


Thorough or base maintenance of the Boeing 737 and Airbus 320 aircraft types as well as the painting of planes are conducted in the hangars located at Tallinn Airport. Separate services offered include the sale of aircraft maintenance knowhow and route maintenance service, that is maintenance between flights at a number of international airports.


In January 2018, investment company BaltCap, the owner of Magnetic MRO, sold 100% of its holding in the company to the Chinese company Guangzhou Hangxin Aviation Technology, which became the largest Chinese investment in Estonia.

 






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