Airport, Estonia, EU – Baltic States, Transport

The company pays salaries, buys fuel and maintains aeroplanes with that money.

Marika Priske, the Chancellor at the Ministry of Economic Affairs and Communications of Estonia said that SAS recently lent 30 million kroons to Estonian Air, and the national airline had borrowed the same amount in the autumn.

"I know there is a loan in the same amount coming soon," Priske said.

Today no one thinks about the ultimatum that SAS sent to Estonian Prime Minister Andrus Ansip in mid-November. Currently Estonian Air's management and supervisory boards organize the company's daily work so it could operate, Priske noted.

"All attention is paid to solving daily problems," she said.

She noted that Estonian Air spent its money in circulation to buy three brand new Bombardiers that will arrive to Estonia in the spring.

"Short-term loans are spent to pay salaries, to buy the fuel and on maintenance of the planes. The management board has composed an analysis, according to which Estonian Air hopes to be profitable three months after putting the new Bombardiers to use," Priske said.

If SAS stopped financing, Estonia could finance the airline as well, but only if the company had long-term plans.

"Currently there is not a single loan-term plan. Today the main goal is to keep Estonian Air operating through short-term loans," Priske said.

Olev Schults, the Chairperson of Estonian Air Management Board, was not willing to tell how much money Estonian Air has borrowed from SAS.

He noted that Estonian Air's own capital has diminished, but it is not negative.

Estonian Air has a tax debt in the amount of 310,024 kroons, of which 264,348 kroons is social tax. The company has not timed or contested that debt.