Estonian Air set unachievable goals according to former Estonian Air CEO Erki Urva (ERR News, 01-Nov-2012). Mr Urva said the airline attempted to make Tallinn Tallinn Lennart Meri Airport a regional hub, however, it was unable to do so due to the small nature of the Estonian market. The airline was also unable to offer a large number of destinations at competitive fares. Mr Urva said “at least in Central and Eastern Europe, there isn't a single airline that has succeeded with such a strategy”. Mr Urvu said the airline needs to consolidate its operation, cancel unprofitable routes and reduce frequencies. “After that it will be possible to start expanding again. The source of the problems was excessively rapid and explosive expansion. Had it been done at the right pace, perhaps things wouldn't have gone so badly,” Mr Urva said. Mr Urva led the airline from 2000 to 2005.
Estonian Air set unachievable goals: Former CEO
You may also be interested in the following articles...
State of the Market; Global aircraft leasing continues its international shift from west to east
Aviation leasing continues to see a favourable outlook, growing rapidly in both size and importance. The sector is enjoying a combination of easily available funding at low interest rates and strong lease yields, while it’s airline customers benefit from record profits, lower fuel costs and strong air travel demand.
Fleet Report & Outlook 2017
Oriel reviewed its piece written in Jan-2016 and many of its thoughts panned out during 2016. In particular, the growing gap between the values of aircraft sold naked and those transacted with a lease in place. In Oriel’s opinion, this gap has reached unprecedented levels as new lessors and investors seeking yield have fuelled a value bubble for aircraft with leases attached.