Estonian State and SAS affirm Estonian Air sale agreement
17-Sep-2010 Estonia's Minister for Economy and Communications Juhan Parts and SAS Vice President Benny Zakrisson on Friday in Tallinn endorsed the purchase and sale transaction concerning shares in Estonian Air.
The transaction will step into effect automatically after the Estonian parliament has approved a change in this year's state budget whereby the state channels into the budget of the area of government of the Ministry of Economy and Communications 280 million kroons (EUR almost 18 mln) for increasing the share capital of Estonian Air.
Juhan Parts said it was very important that the Riigikogu would approve the share capital increase as quickly as possible. "We have taken responsibility before the national airline and now we must fulfil it," the minister said.
Ahti Kuningas, deputy secretary general for economy at the Estonian Ministry of Economy and Communication, said Estonian Air was bound to face interesting times. On the one hand improvement of economic outlooks will lead to growth in air traffic, but on on the other hand we know that there is tough competition on the aviation market.
"It is good to know that despite contraction of SAS's holding in Estonian Air we have many common interests on the whole Baltic market. This can be seen also from the opening of a new route from Vilnius," Kuningas added.
Under the transaction, the size of the shareholding of the Estonian State in Estonian Air will grow to 90 percent while SAS will in the future hold 10 percent of total shares.