Response to pil00t question:
So, how long can Estonian air maintain operations with losses like that?
Estonian Air in tail spin
Jul 08, 2009
By Ashley Brettell
NOSEDIVE: The Estonian national air carrier saw its financial earnings plummet, leading to speculation about whether it can keep its head above water.
TALLINN - The Estonian national air carrier is fighting for survival after announcing that its losses in 2008 had trebled. The financial results for 2008 revealed a loss of 171 million kroons (10.9 million euros), despite sales revenue rising by 6 percent to 1.46 billion kroons. This was over three times worse than the 52 million kroon loss incurred in 2007.
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Estonian Air in tail spin
Estonian Air can’t work with loss for long, but if Estonian Air would disappear then the number of flights from Tallinn would go down by half, Andrus Aljas, the Estonian Air CEO told Postimees, ERR News reports.
“The company can’t work in loss for a long time. If Estonian Air isn’t able to e lucrative then there’s doubt whether this company is needed on the market,” Aljas said.
“If Estonian Air disappears then half of direct routes with Tallinn will disappear. Last year global trends were working against is, this year will be difficult as well, but we get back on our feet as soon as the situation improves,” Aljas said.
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balticbusinessnews.com - Aljas: Estonian Air can?t work with loss for long