Infortar Group to be engaged as an investor in Estonian Air

On Tuesday the Supervisory Council of Estonian Air approved the modified restructuring plan to be submitted to the European Commission; approval of the plan creates preconditions for Infortar Group to be engaged as a majority shareholder of the airline.
The modified restructuring plan of Estonian Air is submitted to the European Commission on October 31. Upon approval of the restructuring plan Infortar Group is anticipated to invest into the company in Spring 2015. The changes in the ownership structure must be beforehand approved by the Government of Estonia.
“Estonian state has been looking for ways to engage a strong private investor among the shareholders of the national airline for the last three years,” said Ahti Kuningas, Chairman of the Supervisory Board of Estonian Air and Deputy State Secretary of the Ministry of Economic Affairs and Communications. “Today we have reached a framework agreement with a partner, who holds the best vision for Estonian Air’s future and best available knowhow from the tourism industry.”
Ain Hanschmidt, CEO of AS Infortar, described the investment as a challenge. At the same time, there lies an opportunity for Infortar Group to use its wide experience from investments in tourism and service industry as well as its financial strength for the development of Estonian Air.
“In addition, we see several substantial synergy possibilities with Tallink in terms of economies of scale – for example in purchasing, marketing activities, sales network,” noted Hanschmidt.
Estonian Air is national carrier of Estonia based in Tallinn, with a fleet of four Embraeer 170 and three CRJ900 airplanes. The regular route network of Estonian Air has 10 destinations, which are complimented by seasonal routes and charter services.
AS Infortar is an Estonian investment company, which investments include 36 per cent of the leading shipping company of the Baltic Sea, Tallink Group. The company’s focus is on investments into the tourism industry, transport sector and real estate.
Ministry of Economic Affairs and Communications
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