Estonian Air subsidy under European investigation

Victoria
By Victoria February 23, 2013 11:00

Estonian Air subsidy under European investigation

The European Commission (EC) is investigating government support of Estonian Air to determine whether they are in line with EU state aid rules. The rules state that such funding can be considered free of state aid when they are made on terms that a private organization operating under market conditions would have accepted.
Estonian Air has received three capital injections from the government totaling €57.2 million between 2009 and 2012, and has indicated to the EC of its intention to grant Estonian Air a rescue loan of a further €8.3 million. The first three loans had not been reported to the EC. The airline has posted heavy losses since 2006.
“At this stage, the Commission has doubts that these four previous measures were carried out on terms that a private player operating under market conditions would have accepted,” according to the statement.

Victoria
By Victoria February 23, 2013 11:00
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