News from Estonian air and benefits for SAS
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News from Estonian air and benefits for SAS
Estonian Air decided to give company’s properties to SAS
Juhan Tere, BC, Tallinn, 06.08.2009AD
Despite opposition from the Estonian State, the supervisory board of Estonian Air decided to give the company’s real estate property to SAS, writes Eesti Päevaleht/LETA.
On July 27, the supervisory board of Estonian Air decided that the Scandinavian aviation enterprise SAS that owns 49% of the Estonian airline will acquire the office building and aircraft hangar next to the Tallinn Airport that was thus far owned by Estonian Air. The property will be taken over by SAS’ subsidiary Air Maintenance Estonia.
In 2008 financial report the residual value of the buildings in question was a total of 167 million kroons.
It is speculated that SAS is preparing for Estonian Air’s bankruptcy and is taking assets out of the airline.
This decision came unexpectedly for the Estonian Air that owns 34% of the enterprise. Tarmo Porgand and Heldur Meerits who represent the Estonian State in the supervisory board voted against the decision. Their explanations were that the substance of the transaction is unclear, the arguments are insufficient and the decision is contrary to Estonian Air’s interests.
However, as the State owns a minority of shares, the representatives of SAS voted in favour of the proposal and investment company Cresco has 17%. Therefore, the vote of the chairman of the supervisory board of Estonian Air, the head of Cresco Olev Schults was decisive and he supported SAS. Eesti Päevaleht estimated that such a move by Schults was not surprising as Schults has constantly sided with SAS and several critics is calling him SAS’ frontman in the supervisory board.
People involved with this decision, however, are refusing to comment or are unavailable for one. Schults initially noted over the phone that he will respond to questions on the transaction in writing, but in his written response he states, “Estonian Air is a private enterprise and the supervisory board will not discuss its work and its decisions in front of a public auditorium.”
The management board of Estonian Air also does not want to explain the move as this is a matter that concerns the company’s owners and supervisory board.
The Ministry of Economic Affairs and Communications noted also that it is aware of the transaction, but questions about it should be directed to Estonian Air. The ministry is not satisfied with the development and made an official query about the transaction.
Permalink: Estonian Air decided to give company?s properties to SAS :: The Baltic Course | Baltic States news & analytics
Juhan Tere, BC, Tallinn, 06.08.2009AD
Despite opposition from the Estonian State, the supervisory board of Estonian Air decided to give the company’s real estate property to SAS, writes Eesti Päevaleht/LETA.
On July 27, the supervisory board of Estonian Air decided that the Scandinavian aviation enterprise SAS that owns 49% of the Estonian airline will acquire the office building and aircraft hangar next to the Tallinn Airport that was thus far owned by Estonian Air. The property will be taken over by SAS’ subsidiary Air Maintenance Estonia.
In 2008 financial report the residual value of the buildings in question was a total of 167 million kroons.
It is speculated that SAS is preparing for Estonian Air’s bankruptcy and is taking assets out of the airline.
This decision came unexpectedly for the Estonian Air that owns 34% of the enterprise. Tarmo Porgand and Heldur Meerits who represent the Estonian State in the supervisory board voted against the decision. Their explanations were that the substance of the transaction is unclear, the arguments are insufficient and the decision is contrary to Estonian Air’s interests.
However, as the State owns a minority of shares, the representatives of SAS voted in favour of the proposal and investment company Cresco has 17%. Therefore, the vote of the chairman of the supervisory board of Estonian Air, the head of Cresco Olev Schults was decisive and he supported SAS. Eesti Päevaleht estimated that such a move by Schults was not surprising as Schults has constantly sided with SAS and several critics is calling him SAS’ frontman in the supervisory board.
People involved with this decision, however, are refusing to comment or are unavailable for one. Schults initially noted over the phone that he will respond to questions on the transaction in writing, but in his written response he states, “Estonian Air is a private enterprise and the supervisory board will not discuss its work and its decisions in front of a public auditorium.”
The management board of Estonian Air also does not want to explain the move as this is a matter that concerns the company’s owners and supervisory board.
The Ministry of Economic Affairs and Communications noted also that it is aware of the transaction, but questions about it should be directed to Estonian Air. The ministry is not satisfied with the development and made an official query about the transaction.
Permalink: Estonian Air decided to give company?s properties to SAS :: The Baltic Course | Baltic States news & analytics
