The minister of economic affairs and communications Juhan Parts was also authorised to decide increasing the equity capital of Estonian Air at the general meeting of shareholders by 114,007,300 kroons by issuing 207,286 new shares of nominal value of 550 kroons.
Estonian Air needs to increase its equity capital to execute a restructuring plan with the principal objective of taking the enterprise over the profit threshold point in the context of falling volumes.
The State wishes to ensure maintaining direct routes from the Tallinn Airport in a situation where a number of aviation enterprises have stopped operating flights from Tallinn or cutting them back significantly.
70,473 shares of the new shares of Estonian Air will be subscribed for by the Republic of Estonia as a shareholder, the shares will be administered by the Ministry of Economic Affairs and Communications. The State"s condition to increase the equity capital was that all shareholders of the airline will do the same in proportion of their shareholding and that the enterprise would continue improving the efficiency of their operations.
49% of AS Estonian Air is owned by SAS, 17% by AS Cresco and 34% by the Estonian State.