The talks that started between national airline Estonian Air and the pilots’ union ELA yesterday did not result in an agreement and will continue today.
Estonian Air is keen to avert the strike that pilots have threatened to start on Monday, January 7, and says the outcome of the talks could well determine the fate of the whole airline. Jan Palmer, CEO of Estonian Air, has said that if there is no agreement and the pilots go on strike, it would be difficult for the airline to remain in business and it could go bankrupt.
The looming strike has already affected the airline's financial standing as ticket sales have decreased. Chairman of the airline's supervisory board, Erkki Raasuke, said that while a strike would not automatically mean the bankruptcy of Estonian Air, it would put it in an extremely bad situation.
Estonian Air's operating loss for the first nine months of 2012 was 20m. Revenue is up from 59 million euros in 2011 to 70 million in the first 9 months of 2012.