By Pasha Holding
BAKU, Azerbaijan, July 4. In a cabinet meeting
held on Tuesday, the Government of Estonia discussed the country鈥檚
air connectivity strategy and approved key measures to advance the
development of Tallinn Airport, Trend reports.
The government has resolved to advance initiatives aimed at
augmenting the airport’s passenger terminal infrastructure,
optimizing conditions for the initiation of novel flight pathways,
and fortifying the operational efficacy of current routes.
Nonetheless, it opted against securing an equity position in Air
Baltic at this juncture based on the prevailing conditions proposed
by Lufthansa.
As articulated by Minister of Infrastructure Kuldar Leis, the
facilitation of Estonia’s global air connectivity has been
delineated as a paramount strategic imperative.
鈥淪ecuring an equity position in Air Baltic represents a pivotal
strategic maneuver with enduring ramifications for national
connectivity paradigms, transportation infrastructure optimization,
and fiscal efficacy.鈥 鈥淭he jurisdiction must possess a
comprehensive and unequivocal understanding prior to advancing with
such a capital allocation,鈥 Leis elucidated.
He observed that Air Baltic was navigating a transition in
executive governance, its fiscal metrics were in the process of
recalibrating, and its strategic roadmap was still in the
formulation phase. In light of these considerations, Estonia opted
not to advance with the investment, yet maintained a contingent
stance to reassess the opportunity contingent upon the airline’s
strategic framework becoming more elucidated.
鈥淭he government remained focused on its role as a policy-maker
in aviation. Our aim was to create a favorable environment for
growing flight connections and passenger numbers鈥攁 move that
supports the wider economy. Air Baltic was and remains a
strategically important partner for Estonia, and we are committed
to maintaining close economic and transport ties with Latvia,鈥 Leis
To enhance air connectivity and raise Tallinn Airport鈥檚 profile
as a regional hub, the government announced three specific
Continuation of a targeted route development program, supporting
the launch and expansion of critical air connections. With Air
Baltic holding roughly a 30% market share in Tallinn, this program
also supports the airline鈥檚 continued operations in Estonia.
Freezing of Tallinn Airport鈥檚 fees for three years, sending a
clear and positive signal to airlines, including Air Baltic, to
consider expanding operations from Tallinn.
Investment support for the airport鈥檚 terminal expansion, as the
current infrastructure had reached its capacity limits and could
otherwise hinder future growth in connectivity.
Minister Leis was expected to present the detailed Tallinn
Airport investment plan to the cabinet in the fourth quarter of
The government also received a briefing on the sale of aircraft
and related assets owned by the state-owned company Transpordi
Varahaldus. The revenue from aircraft sales was estimated at 32
million euros, with additional income expected in the coming months
from the sale of engines and spare parts.
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