Estonian Air downsizes operation, fires CEO

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Published: November 8, 2012

Estonian Air E-170. Courtesy, OV

Baltic’s state-owned Estonian Air (OV) reported a nine-month loss of €20.2 million ($ 25.9 million), nearly doubled from €11.2 million in the year-ago period. OV’s supervisory council has fired CEO Tero Taskila, who took over the position more than a year ago. The airline announced former Cimber Sterling CEO Jan Palmer took over as of Nov. 1. The Danish carrier filed for bankruptcy in May (ATW Daily News, May 4).

The supervisory council said in a statement the carrier will change direction “and its course of action which focuses on important core destinations for Estonia with a real demand.”

It will suspend flights to Tartu, Joensuu and Helsinki over the next few weeks, and is postponing plans to launch services to London City and Gothenburg from next spring.

In 2011, the company introduced a new strategy that focused on expanding its route network.

“By the middle of this year, it was clear that the chosen strategy of OV had risks realization of which worsened the company’s financial performance considerably,” the OV supervisory board chairman said in a statement.

Last month, AirBaltic CEO Martin Gauss told ATW it is keen to explore the potential for regional consolidation with OV (ATW Daily News, Oct. 4).

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