EU PROPES ESTONIAN AIR Government ready with new airline
Posted on 09/16/2015 | About Estonia
Estonia is ready to create a new airline should the European Union rule that the existing national flag carrier illegally received state aid, a decision that would put it out of business.
Economics Ministry spokesman Mihkel Loide said Tuesday that €40.7 ($60.7) million have already been earmarked as an initial capital for a new, fully state-owned carrier. Under the plan, domestic and foreign investors would be allowed at a later stage. Since 2009, Estonia has injected nearly €60 ($89.5) million of capital into Estonian Air to keep it flying. It carried 404,000 passengers in the first eight months of 2015 with a fleet of five planes.
The EU's executive Commission is expected to rule later this year or early 2016.