Category Archives: Estonian Air

Estonian Air starts flying for Austrian Airlines

Estonian Air (Talinn) has started operating an Embraer ERJ 170 for Austrian Airlines (Vienna) for the summer season. The airline has issued this statement:

Estonian Air logo-1

Estonian Air has started cooperation with Austrian Airlines under the wet lease agreement. According to the agreement Estonian Air offers one of its Embraer 170 along with pilots and cabin crew to serve primarily Eastern European route network of Austrian Airlines from June to October 2015.

Being a cost-effective organization and operating with regional aircraft Estonian Air has been acting as a capacity provider to several major airlines. “We are happy to start cooperation with Austrian Airlines and looking forward to have a fruitful partnership for both sides also in the future. Thanks to our dedicated and flexible organisation we are able to provide high quality services at short notice,” said Indrek Randveer, CCO of Estonian Air.

Copyright Photo: Stefan Sjogren/ Embraer ERJ 170-100LR ES-AED (msn 17000112) approaches the runway at Stockholm (Arlanda).

Estonian Air aircraft slide show: AG Airline Slide Show

Estonian Air’s loss for the first nine months widens to $7.9 million

Estonian Air (Talinn) reported a deepening loss of $7.9 million for first nine months of 2014 due to increased competition.

The company issued this full report:

The total revenue of Estonian Air was 52.2 million and loss 6.4 million euros ($7.9 million) in nine months. Last year the revenue was 55.4 million, and the loss 6 million euros ($7.4 million) in the same period.

“The results of the third quarter were below our earlier forecasts. Although we have increased the number of passengers, added flights to several existing routes and opened new destinations, at the same time the pressure on ticket prices has increased remarkably. Intensified competition on the aviation market and continuous unstable situation on our Eastern market has significant impact on our financial results,” commented Jan Palmér, the CEO of Estonian Air.

In the third quarter 2014, the revenue was 19.3 million and the net loss 1.4 million euros.

Within the third quarter Estonian Air carried altogether 161 000 passengers, out of which 152 000 on regular flights. In nine months Estonian Air carried 403 000 passengers which is 5 per cent less than the same period last year.

Estonian Air has increased its share on Tallinn based charter market. In addition, Estonian Air has signed charter agreements with several Estonian travel agencies to operate during the winter and summer flight period which will help the company to utilise the free capacity of the aircraft more efficiently.

The Council of Estonian Air approved the modified restructuring plan to be submitted to the European Commission by the end of October this year. Upon approval of the restructuring plan Infortar Group will invest into the company, which is anticipated in Spring 2015. The changes in the ownership structure must be approved beforehand by the Government of Estonia.

Estonian Air, Estonia’s national carrier, is the biggest operator at Tallinn Airport. The airline flies regular routes to Stockholm (Arlanda and Bromma), Copenhagen, Amsterdam, Brussels, Oslo, Moscow, Munich, St Petersburg, Kiev, Vilnius and Trondheim. In addition, from December 2014 to March 2015, Estonian Air will add seasonal flights to Munich and from April to November 2015 to Milan.

Copyright Photo: Stefan Sjogren/ Embraer ERJ 170-100LR ES-AEA (msn 17000093) arrives in Stockholm (Arlanda).

Estonian Air aircraft slide show: AG Slide Show

Estonian Air is coming next summer to Milan

Estonian Air (Tallinn) will add Milan (Malpensa) and the Tallinn-Milan route on April 21, 2015. The new route will be flown twice-weekly with Bombardier CRJ900s.

In other news, Estonian Air reported in August 2014, it carried 53,554 passengers, an increase of 3% compared to the same month last year when Estonian Air carried 51,976 passengers. In August Estonian Air operated 935 flights, an increase of 6.4%.

In the first eight months Estonian Air carried altogether 368,263 passengers, a decrease of 2.6% compared to 2013. In the same period, Estonian Air operated 7163 flights, which is 2.8% less compared to the same period last year.

The 15-minute punctuality of Estonian Air flights in the first eight months was 92.7%, an increase of 2 percentage points compared to the same period last year. The regularity was 99.3%, a decrease of 0.3 percentage points compared to the same period last year. In August the punctuality was 90.2 and regularity 99.3 percentage.

Estonian Air is aiming to provide Estonia with reliable and regular double daily connections to destinations of strategic importance and of substantial demand. Being a small country on the edge of Europe, Estonia depends on such connections, and Estonian Air is committed to provide these services.

Estonian Air, Estonia’s national carrier, is the biggest operator at Tallinn Airport. The airline flies regular routes to Stockholm (Arlanda and Bromma), Copenhagen, Amsterdam, Brussels, Oslo, Moscow, Munich, St. Petersburg, Kiev, Vilnius and Trondheim. In addition, from May to September, Estonian Air flies to Nice and Split, from June to August to Paris and from June to the end of October to Berlin. From December 2014 to March 2015, Estonian Air will add seasonal flights to Munich and from April to November 2015 to Milan.

Copyright Photo: Stefan Sjogren/ Bombardier CRJ900 (CL-600-2D24) ES-ACB (msn 15261) taxies at Stockholm’s Arlanda Airport during the winter.

Estonian Air: AG Slide Show

AG Banner Taglines Color Prints 1800

Promotional ad by Estonian Air for its new Milan destination:

Estonian Air Milan ad

Estonian Air narrows its first half loss to $6.6 million

Estonian Air (Tallinn) reported a first half net loss of €5 million ($6.6 million), down from a net loss of €6.1 million ($8.0 million) in the same period a year ago.

The airline issued this full financial statement:

Despite tougher competition Estonian Air improved its half year net result by 18%. In the first half of 2014, Estonian Air’s revenue amounted to EUR 32.9 million, which is 8% less compared to the same period last year but net result of the company improved by 18%, which amounted to EUR 5.0 million loss.

During the first six months, Estonian Air carried 260 thousand passengers, of which 251 thousand on regular flights. This is 8% less than in the same period last year but less than the decrease in roundtrips (10%) in the same period 2013.

“The result of the second quarter is on the same level as in the same period last year, but nevertheless we expected to see more positive results,” said Jan Palmér, CEO of Estonian Air. “During the second quarter Estonian Air has continued to perform in line with the restructuring plan, but in addition we must now intensify measures in response to harsher market. Competition in Tallinn airport has become tougher as new carriers have entered the market and we have been influenced by continuing uncertain situation in Ukraine resulting in lower passenger volumes on Kiev route and lower transit passengers volumes flying from Europe to Russia,” continued Palmér.

The pressure on airlines’ yield has increased in the whole Europe, forcing airlines to adapt to the changing market conditions. “In the first half of the year, the total number of passengers fell slightly behind our forecast. This is mainly due to less number of operated flights compared to last year, which is due to demanding market situation. However, in June and July we have seen the passenger volumes coming back. Positively surprising high demand for our summer offers and two more summer destinations helped us to turn the number of passengers into growth again,” added Palmer.

In addition to direct flights, Estonian Air is providing more than 280 destinations around the world together with partner airlines with minimum connecting time. For instance, Stockholm, Copenhagen and Amsterdam airports act as important hubs for connecting flights around the whole world.

Estonian Air, Estonia’s national carrier, is the biggest operator at Tallinn Airport. The airline flies regular routes to Stockholm, Copenhagen, Amsterdam, Brussels, Oslo, Moscow, Munich, St Petersburg, Kiev, Vilnius, Trondheim and Bromma. In addition, from May to September, Estonian Air will fly to Nice and Split, from June to August to Paris and from June to 1st of November to Berlin. From December 2014 to March 2015, Estonian Air will add seasonal flights to Munich.

Copyright Photo: OSDU/ Embraer ERJ 170-100LR ES-AEA (msn 17000093) arrives in Moscow (Sheremetyevo).

Estonian Air: AG Slide Show

Estonian Air reduces its loss by 83% in 2013 to $11 million

Estonian Air (Tallinn) is in the process of turning around its financial future through a restructuring plan. The company reported its net loss was reduced by 83 percent to $11 million for 2013.

The company issued this financial statement:

The results are in line with restructuring plan which is reflected by the positive operating result of 7.4 million euros. Estonian Air’s core business turned profitable in the second and third quarter, and in 2013 the airline managed to post its first positive monthly result in over three years. For the full year, the airline’s operating loss amounted to 4.2 million euros.

In 2013, the sales revenue of Estonian Air was 72.3 million euros. The company’s gross profit was 7.4 million euros and net loss 8.1 million euros ($11 million).

Compared to 2012, the sales revenue was 21% less. The gross profit increased by 147% and net loss was reduced by 83%. The loss of the airline in 2012 was 49.2 million euros.

“Estonian Air is in a much better position today than it was on November 1, 2012, when I took over as Chairman of the Management Board and CEO of Estonian Air. My mandate was to restructure the airline to sustainable operations. The airline has taken all the planned steps to reach that goal,” said Jan Palmér, the CEO of Estonian Air.

“The European Commission’s investigations into prior instances of state aid as well as the airline’s Restructuring Plan are ongoing. Together with our shareholder representatives, we are working to ensure that the decision expected in the near-term future will be positive,“ added Palmér.

According to Mr. Palmér, Estonian Air has downsized its operations to develop the airline into an efficient regional player focused on the Nordic and emerging nearest neighboring markets. “We have reduced the network to ten core destinations which is served with five aircraft, and turned the service concept to a regional model during the restructuring process,“ explained Palmér.

The total number of Estonian Air’s passengers in 2013 was 551 169, which is 37.9% less than in 2012. With the excess aircraft the airline increased its number of charter flights almost five times from 44 to 209.

Copyright Photo: Stefan Sjogren/ Estonian Air downsized to a regional carrier as part of its restructuring plan. The fleet is now centered around three Bombardier CRJ900s and four Embraer 170s leased from Finnair. ERJ 170-100LR ES-AED (17000112) arrives in Stockholm (Arlanda).

Estonian Air:


Air Lituanica to start Paris CDG service on February 14, 2014, Estonian Air cancels the contract

Air Lituanica (Vilnius) is planning to launch a new route to Paris (CDG) starting on February 14, 2014. The new route will initially be an extension of the Prague route four days a week but the destination will become nonstop service after April 27.


Air Lituanica Vilnius-Paris Schedule

All Air Lituanica flights are currently being operated by Estonian Air‘s (Talinn) Embraer 170s but this relationship seems to be unravelling. Estonian Air has cancelled the contract with Air Lituanica and issued this statement:

As part of winding down flight operations in Lithuania connected to the termination of its contractual relationship with Vilnius-based Air Lituanica, Estonian Air has decided to service the Vilnius – Berlin route only through December 15, 2013 and Vilnius – Amsterdam through January 6, 2014.

“After Estonian Air was forced to terminate its contractual relationship with Air Lituanica due to repeated breaches by Air Lituanica, we have no intentions to serve these routes independently in long term. We are doing everything to fulfill our obligations to ticket holders and minimize any interruptions related to their travel plans,“ said Jan Palmér, the CEO of Estonian Air.

Only Estonian Air tickets (with number 960 – XXXXXXXXX) and partner airline tickets, such as KLM, Delta, Hahn Air, are be accepted on Estonian Air flights.

Estonian Air flight tickets on Vilnius-Berlin flights after December 15, 2013 and on Vilnius – Amsterdam flights after January 6, 2014 will be refunded.

Who will replace Estonian Air? Can Air Lituanica survive this cancellation?

Copyright Photo: TMK Photography/ Operated by Estonian Air for Air Lituanica, Embraer ERJ 170-100LR ES-AEB (msn 17000106) arrives at Brussels.

Air Lituanica: AG Slide Show

Estonian Air: AG Slide Show

Estonian Air’s 2012 loss widens to $63.3 million

Estonian Air (Tallinn) reported a net loss of $63.3 million but claimed its turnaround is “on track”.

The company issued this statement:

In 2012, the revenue of Estonian Air was 91.5 million euros. The company’s net operational losses was 35.8 million euros. Together with one-off costs (impairment on aircraft), the net loss for 2012 was 49.2 million euros ($63.3 million).

The costs associated with the attempt to grow the airline and expand the route network amounted to approximately 26 million euros.

“Late last year, the Supervisory Council of the company decided to change Estonian Air’s business model from growth oriented carrier to a regional point-to-point airline,” says Jan Palmér, CEO of Estonian Air.

“While the airline carried a record number of passengers in 2012, low yields from the transfer traffic did not support the airline’s bottom line. Although the airline brought four new jet aircraft into service by the start of the summer season, overall the fleet transition proved to be more costly than planned,“ commented Palmér.

From the end of January 2013, Estonian Air is working according to the restructuring plan to become cost efficient regional carrier to provide flights to the destinations critically important for Estonia, where the demand is constantly high.

“Our turnaround is on track. We are changing from a traditional carrier to a small cost effective regional airline serving a core route network of ten destinations. We have already succeeded in increasing the yield, signed collective agreements with the crew, started to divest non-core assets and thus starting to be where we want to be. This gives us confidence to sustain the business,” added Palmér.

The ten core destinations of Estonian Air include Stockholm, Copenhagen, Amsterdam, Brussels, Oslo, Moscow, St. Petersburg, Kiev, Vilnius and Trondheim.

Copyright Photo: Stefan Sjogren. The airline is dramatically phasing out all types and will concentrate around the Embraer ERJ 170-100.

Estonian Air: AG Slide Show

Estonian Air logo

Route Map: The route map is shrinking to its core destinations listed above.

Estonian Air 3:2013 Route Map

Estonian Air and its pilots agree to a new contract, adverting a strike

Estonian Air (Tallinn) is moving ahead with its restructuring plan. The airline and its pilots have agreed to a new Collective Agreement. The pilots were threatening to strike the company yesterday and the negotiations and now a new contract adverted the strike. However the flag carrier faces major challenges for survival.

The struggling carrier has not made any money since 2006. The airline is downsizing and will rally around a fleet of just Bombardier CRJ900s for the next summer season operating on its most profitable routes.

The airline issued the following statement:

Estonian Air and Estonian Pilots Trade Association (ELA) signed a Collective Agreement which has been confirmed by the Supervisory Board of Estonian Air which had its regular meeting today. The Collective Agreement is valid up till January 31, 2014.

“The company has signed the Collective Agreement with ELA and from now on the management can carry on the implementation of Estonian Air restructuring,” commented Erkki Raasuke, the Chairman of Estonian Air Supervisory Council.

“After signing the Agreement, Estonian Air is able to focus on its daily operations on passenger servicing,” said Jan Palmér, the CEO of Estonian Air. “Today we can assure to our customers that all Estonian Air flights are operated according to the schedule.“

According to Rauno Menning, the Chairman of the Pilots Trade Association, an agreement has been achieved regarding rest and duty times. “The Collective Agreement will ensure the industrial peace inside the company,” added Menning.

The Collective Agreement is regulating duty and rest time, working conditions and relations between the airline and the Trade Union.

The provisions of the new Collective Agreement signed by the Pilots Trade Association are extended to all pilots of Estonian Air. The Pilots Trade Association is uniting approximately 80 pilots, out of which 70 are working at Estonian Air.
On 13 December 2012, Estonian Air signed a Collective Agreement with Estonian Air Cabin Crew Union which is valid up till the end of 2013. The Estonian Air Cabin Crew Union is uniting approximately 80 crew members.

Read the analysis by Bloomberg: CLICK HERE

Copyright Photo: Stefan Sjogren. The aircraft of the future Estonian Air fleet will now only be the pictured CRJ900 according to Airline Route. The new Embraer E-Jets will apparently be phased out, following the same exit as the Boeings. CRJ900 (CL-600-2D24) ES-ACB (msn 15261) touches down at Stockholm (Arlanda).

Estonian Air: AG Slide Show

Estonian Air introduces a new “Fly to Estonia” logoplane, will retire the last Boeing 737-500 on October 21

Estonian Air (Tallinn) has repainted its SAAB 340B ES-ASO (msn 223) from the “Hockeybird” to a special “Fly to Estonia” livery to promote winter travel to the country. The first flight from Tallinn in the new design was completed on October 11 and the special livery will stay until the end of this year.

The aircraft will operate from Tallinn to Vilnius, Helsinki, Joensuu, Jyväskylä, St Petersburg and Tartu.

The airline issued the following statement:

In the framework of an ongoing co-operation between Estonian Air and EAS (Enterprise Estonia), one of the SAAB 340 aircraft in Estonian Air fleet was given a special livery to attract tourists from the regional destinations of Estonian Air to spend winter holidays in Estonia. This is a continuation of the marketing campaign carried out in October in Lithuania, Russia, Finland, Sweden and Norway, promoting the possibilities of spending winter holidays in Estonia.

“EAS and Estonian Air have common goals – to be visible on world map, bring a lot of foreign tourists to Estonia and do so in a special way. This beautiful aircraft design is a good example of co-operation between domestic organisations,” says Marketing Director of the Estonian Tourist Board at Enterprise Estonia, Tarmo Mutso.

“Research shows that aircraft is the advertising channel with the highest level of message recall, i.e. people recall afterwards not only the medium of the advertisement but even the message itself”, explains Gunnar Mägi, head of marketing and development in Estonian Air. “Since European airports enjoy a very high concentration of people, I am confident that our invitation will not go unnoticed”, he added.

In other news, the company will retire the last Boeing 737-500 on October 21 when the assigned aircraft completes a round trip between Tallinn and Paris (CDG) per Airline Route.

Top Copyright Photo: Estonian Air.

Estonian Air: 

Bottom Copyright Photo: Keith Burton. Boeing 737-53S ES-ABH 9msn 29074) climbs away from Southend.

Estonian Air opens a new seasonal route to Venice

Estonian Air (Tallinn) today (June 9) opened a new seasonal destination from Tallinn to Venice. The flights are operated twice a week on Tuesdays and Saturdays. The route will be operated until September 1, 2012.

Copyright Photo: Andi Hiltl. 

Estonian Air: