While sharing next year’s plans with Postimees, the airline’s CEO Jan Palmér remains cautious. «We are seeking opportunities, but launching new routes would be quite a risk... and, currently, risks are what we are trying to avoid,» he explained.
No new routes planned by Estonian Air
29th October 2013, 15:07
Please note that the article is more than five years old and belongs to our archive. We do not update the content of the archives, so it may be necessary to consult newer sources.
For small airlines like Estonian Air, independent launch of new routes isn’t the only option of development. One version could be acting as subcontractor for some larger European airline – and this is what Estonian Air is aiming to do, hoping to enter into a contract next fall.
During the year to come, it is vital for Estonian Air to have European Commission reply to the legality of state aid issue. Regrettably, says Mr Palmér, it is still not known when the answer might come. «We have tried to inquire at the commission, but they are currently having a large backlog of cases, so they do not know for sure.»
Still, Mr Palmér hopes to have the commission reply by summer; even so, considering the slow motion of the Brussels bureaucracy – one just never knows.
Regarding last year, Mr Palmér noted that while the initial months were very difficult, the second half was much more interesting already; and by now the earlier pessimism in the company has turned into an atmosphere much brighter.
When it comes to financial results, this year’s third quarter sales revenue is up by a per cent, from second quarter, amounting to €19.7m. Third quarter net loss, largely derived from interest costs, was €300,000.
The airline’s operating result before restructuring costs was positive for every month of the quarter; in September, the company made net profits. Mr Palmér hopes for the trend to continue both in fourth quarter and next year. «That would set all of our activities on a much more solid foundation.»
For the first nine months of 2013, Estonian Air suffered a €6.1m loss at €55.4m of turnover.
During the nine months, 428,000 people flew Estonian Air – 38 per cent fewer, year-on-year. At the same time, number of two-way flights decreased 45 per cent over the same time-period, meaning that decrease of passengers was slower than that of flights.