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Estonia's national airline is bankrupt

Staff writer |
An Estonian court has declared the Baltic nation’s state-owned airline Estonian Air bankrupt after it ceased operations last month following a European Union order to repay millions in state aid.

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The Harju County Court said that the bankruptcy proceedings for Estonian Air are to be carried out immediately, with the first meeting of creditors scheduled on January 15.

The EU’s executive Commission said on November 7 that Estonia had breached EU rules by injecting capital into the ailing carrier for years. The Commission obliged the airline to pay back 85 million euros plus interest to the Estonian taxpayers.

The Estonian government earlier this year established a new airline, Nordic Aviation Group. It started operations immediately after the EU’s decision.

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