The troubled state-owned airline Estonian Air has received two bids for its real estate located at No 13 Lennujaama Road, Tallinn, both of which are in the region of 7.5 million euros.
Estonian Air's real estate seen to fetch EUR 7.5 mln
22nd March 2013, 18:46
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The transaction will be prepared in the first quarter and is expected to be closed during the first half of 2013, Estonian Air said in its annual report.
The two offers independent of each other were filed at the end of 2012.
"Our turnaround is on track. We are changing from a traditional carrier to a small cost effective regional airline serving a core route network of ten destinations. We have already succeeded in increasing the yield, signed collective agreements with the crew, started to divest non-core assets and thus starting to be where we want to be. This gives us confidence to sustain the business," Jan Palmer, CEO of Estonian Air, said in a press release ahead of the publication of the annual accounts on Thursday.
To improve its financial situation Estonian Air intends to sell all its subsidiaries: Estonian Air Regional, Amadeus Estonia, and Eesti Aviokutuste Teenuste AS. "We will try and sell everything we can to earn as much free money as possible," the CEO said. The company is planning to sell also its offices and hangars, cutting office space from the present 3,500 square meters to 950 square meters.
Estonian Air ended 2012 with a net loss of of 49.2 million euros, which includes one-off extraordinary costs related to impairment on aircraft. Operating loss for the period was 35.8 million euros and revenue amounted to 91.5 million euros.