Airlines go and arrive

Estonian Air, has ceased flying after European Union regulators ordered Estonia to recover €85m (US$91m) in state aid granted to it.

Earlier the European Commission ruled following a near three-year investigation that the aid extended to the loss-making national carrier had given it an unfair advantage.

"Estonian Air therefore needs to pay back the state aid already received, which according to the Commission's information amounts to about €85m plus interest, and cannot receive an additional €40m of restructuring aid," the EU executive said.  Passengers who have paid for future travel are having their fare refunded.

In anticipation of a negative EU ruling, the Estonian government has set up a new company, Nordic Aviation Group, to offer flights from the capital Tallinn in cooperation with five airlines.

InterSky, a small Austrian airline, was also grounded last week due to financial difficulties.  Established in 2001 it operated ATR 72 and Bombardier Q400 aircraft.   From its base at Friedrichshafen Airport (Germany), it flew both scheduled and charter flights.  www.nagroup.ee

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