Nearly a half of Estonian business leaders who participated in a KPMG study of economic trends supported the idea of establishing a joint venture or a common Baltic airline on the basis of the flag carrier Estonian Air.
Business leaders suggest joint venture as solution for Estonian Air
3rd April 2013, 16:42
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"Although state aid to Estonian Air within possibilities found the most support as a way to ensure flight connections out of Tallinn, being backed by 31 percent of respondents, creation of a Baltic airline or alternatively of a joint venture on the basis of Estonian Air was preferred by 48 percent of the interviewees in all," KPMG Baltics CEO Andris Jegers said.
"Only 5 percent were in favor of winding up Estonian Air altogether or giving advantages to low-cost carriers," he added.
"The outcome shows that in entrepreneurs' opinion a joint venture would be the most rational choice because the main aim is to ensure flight connections to destinations important to Estonia," Jegers said.
Comments to the survey suggested that instead of having a national airline Estonia could subsidize operation of necessary routes by more viable carriers on the basis of binding agreements or subsidize concrete routes like it's done with island ferry traffic.
Some respondents said that flights to important destinations should be ensured by contracts between the state and carrier or between carriers, or that the state could hold tenders for operating certain routes.
It was deemed essential to have air connections with capital cities of European Union member states and former Soviet republics.