OREANDA-NEWS. November 14, 2012. The Supervisory Council of Estonian Air will change company’s direction and will assign Jan Palmer as the new CEO of Estonian Air. At the same time, all the members of the Supervisory Council will present their membership resignation request to the Minister of Economic Affairs and Communications, reported the press-centre of Estonian Air.  

In autumn 2010, after acquiring the majority of company’s shares, Estonian State set Estonian Air a target to increase connections from Estonia, and to achieve profitability. In 2011, in order to reach the goal, the company introduced a new strategy which focused on expansion of the route network.

“By the middle of this year, it was clear that the chosen strategy of Estonian Air had risks realization of which worsened the company’s financial performance considerably,” said the Chairman of Estonian Air Supervisory Council.

The total revenue of Estonian Air in the first nine months of 2012 was 70.4 million euros, of which the third quarter comprised 26.6 million euros. Company’s nine month loss reached 20.2 million euros, third quarter loss was 5.3 million euros. The total revenue of Estonian Air in the first nine months of 2011 was 58.7 million euros and loss 11.2 million euros.

In the first nine months Estonian Air carried altogether 688 000 passengers, the passenger number of third quarter was 264 000. In the first nine months the load factor of Estonian Air flights was 71.5%, third quarter load factor was 74.8%.

“Based on the financial results and future prospects, the Supervisory Council decided to change the strategy approved last year and to name Jan Palmer as the new CEO of the company,“ said Raasuke. “Changed direction is based on core route network for Estonia, where there is a solid fundamental demand.“

Jan Palmer has over 20 years experience in aviation field. Palmer starts as the new CEO of Estonian Air from 1 November 2012. Palmer’s main goals are to ensure smooth service for the customers, to adjust the route network based on real economic demand, and to reduce company’s costs in proportion of the new business volumes.

“I use my experience from several regional airlines to support the change of direction requested by the Supervisory Council,. “ said Palmer.

Supervisory Council together with the new CEO will work actively on the medium-term plan for Estonian Air. The results will be presented to the Minister of Economic Affairs and Communications latest by the end of November.

According to Erkki Raasuke, the Supervisory Council wishes the company’s further direction to be evaluated by a renewed Council. “In order to implement the necessary changes, all members of the current Council present a resignation request to the Minister of Economic Affairs and Communications,“ said Raasuke.