In a letter sent to Air Lituanica management on May 7, Infortar, that belongs to Enn Pant, Ain Hanshmidt and Kalev Jarvelill, proposed to launch cooperation to create a joint company that would have two bases, in Tallinn and Vilnius.
Instead of trying to save Air Lituanica, the letter, signed by Infortar chief executive Jaan Tamm, proposes to start a new company, which would ensure lower maintenance costs through synergies with Estonian Air. In summary, Infortar planned to create an aviation company with two home bases, Tallinn and Vilnius, the airline, however, would require subsidies until 2020. Infortar was willing to invest a total of up to EUR 50 million.
To implement the plan, Infortar said it would need both economic and political support from the local authorities, says the letter.
Infortar asked for a response by 20 May. The transaction did not take place. On 22 May, Air Lituanica unexpectedly announced of ceasing operations.
Infortar has also expressed interest in acquiring Estonian Air, if the European Commission completes investigation of a possible forbidden state aid and approves it. Although the Commission initially had to give their assessment in spring, it has now been postponed to the autumn.
Be the first to comment