Tallinn Airport announced yesterday that there may be layoffs ahead for its ground handling subsidiary and that expansion plans for a new terminal will be halted for the time being.
The airport blamed declining passenger numbers and Estonian Air's poor financial situation, reported Postimees.
"Unfortunately, the possibility of layoffs taking place is greater than not. We do not yet know when and how many people will be laid off. That will become clear when we have a more detailed understanding of how Estonian Air plans to move forward," Tallinn Airport Chairman of the Board Rein Loik said.
The airport had been planning to build a new terminal, but the project is not justified at the moment with traveler numbers declining, Loik said. Still, plans for the terminal are ready and would take half a year to implement when the opportunity arises, he said.
After the sacking of Estonian Air's CEO last week, the company announced it would cut routes, flights and staff in order to quell financial hardship. Irish budget airline Ryanair has also reduced its flights for the winter season.