PM: state may invest up to 400 million in Estonian Air

29.04.2010, 15:53

Estonian prime minister Andrus Ansip said today that the state would have to invest between 200 million and 400 million kroons in Estonian Air depending on the business plan, writes aripeev.ee.

Ansip said that the airline's capital need would depend on the choice of the business plan. "Maximum amount would include the use of Bombardier aircraft, but these decisions will be up to the general meeting of shareholders. Estonian government as a minority holder cannot make these decisions for other shareholders," he said.

Under the agreement, Estonian state would acquire 66% of Estonian Air and the holding of SAS would reduce to 34%. At present SAS owns 49% of the national airline, Estonian state owns 34% and investment bank Cresco owns 17%.

Speaking at a government press conference today, Ansip did not confirm that the preliminary contract on the transfer of holding would be signed by the end of this week as reported in the media before.