European Commission requests Estonian Air repay EUR85m in state aid

European Commission (EC) announced (07-Nov-2015) an in-depth investigation lead it to conclude aid measures by Estonia in favour of national flag carrier Estonian Air gave the company an undue advantage over its competitors in breach of EU state aid rules. The carrier was ordered to pay back state aid already received, amounting to EUR85 million. The carrier will be unable to receive planned additional state aid, amounting to EUR40 million. Commissioner Margrethe Vestager, in charge of competition policy, said: "Companies should compete based on a sustainable business model rather than relying on continued support by the State to stay in the market. Estonian Air has repeatedly received public subsidies over the past five years but did not carry out the necessary restructuring to become viable as a business. It would not be a good use of taxpayer money to keep Estonian Air in the market artificially - nor would it be fair to competitors, which have to compete without such support." [more - original PR]