OREANDA-NEWS. March 25, 2014. The presumptive new economic affairs minister, Urve Palo, has set off a mini-scandal over comments made yesterday about the future of Estonian Air.

Palo's comment about likely bankruptcy has "Estonian Air customers demanding refunds for airfares," said supervisory board chairman Erki Urva on E24.

"At the same time, the company is proceeding exactly according to plan. The restructuring plan has been approved and is being more or less followed," he added.

"Our company needs all facts of support from its owner," the state, he said.
"It isn't common for an owner wishing to damage its own company."

Palo told Arileht yesterday that under predecessor Juhan Parts, the carrier has been brought to the brink of bankruptcy and the European Commission may withhold consent for state assistance.