Estonian Air CEO Tero Taskila sacked amid huge losses

31.10.2012, 10:09

Estonian Air's supervisory board has recalled Tero Taskila as CEO and replaced him with Jan Palmer as the airline is likely to have its worst-ever year.

The air carrier today published fresh financial results, reporting a 20.2-million-euro loss in the first nine months of the year - nearly doubling its 11.2-million-euro loss during the same period of last year.

Nine-month revenue was 70.4 million euro, up from 58.7 million a year earlier.

Also all of the supervisory board members will step down.

Supervisory board chairman Erkki Raasuke said the current management's strategy took risks that significantly hurt the company's financial results.

In autumn 2010, after acquiring the majority of company’s shares, Estonian State set Estonian Air a target to increase connections from Estonia, and to achieve profitability. In 2011, in order to reach the goal, the company introduced a new strategy which focused on expansion of the route network.

“By the middle of this year, it was clear that the chosen strategy of Estonian Air had risks realization of which worsened the company’s financial performance considerably,” said Raasuke.

“Based on the financial results and future prospects, the supervisory council decided to change the strategy approved last year,“ said Raasuke. “Changed direction is based on core route network for Estonia, where there is a solid fundamental demand.“

Jan Palmér has over 20 years experience in aviation field. Palmér starts as the new CEO of Estonian Air from 1 November 2012. Palmér’s main goals are to ensure smooth service for the customers, to adjust the route network based on real economic demand, and to reduce company’s costs in proportion of the new business volumes.

In the first nine months Estonian Air carried 688 000 passengers.