BAKU, Azerbaijan, July 4. In a cabinet meeting held on Tuesday, the Government of Estonia discussed the country’s air connectivity strategy and approved key measures to advance the development of Tallinn Airport, Trend reports.
The government has resolved to advance initiatives aimed at
augmenting the airport's passenger terminal infrastructure,
optimizing conditions for the initiation of novel flight pathways,
and fortifying the operational efficacy of current routes.
Nonetheless, it opted against securing an equity position in Air
Baltic at this juncture based on the prevailing conditions proposed
by Lufthansa.
As articulated by Minister of Infrastructure Kuldar Leis, the
facilitation of Estonia's global air connectivity has been
delineated as a paramount strategic imperative.
“Securing an equity position in Air Baltic represents a pivotal
strategic maneuver with enduring ramifications for national
connectivity paradigms, transportation infrastructure optimization,
and fiscal efficacy.” “The jurisdiction must possess a
comprehensive and unequivocal understanding prior to advancing with
such a capital allocation,” Leis elucidated.
He observed that Air Baltic was navigating a transition in
executive governance, its fiscal metrics were in the process of
recalibrating, and its strategic roadmap was still in the
formulation phase. In light of these considerations, Estonia opted
not to advance with the investment, yet maintained a contingent
stance to reassess the opportunity contingent upon the airline's
strategic framework becoming more elucidated.
“The government remained focused on its role as a policy-maker in aviation. Our aim was to create a favorable environment for growing flight connections and passenger numbers—a move that supports the wider economy. Air Baltic was and remains a strategically important partner for Estonia, and we are committed to maintaining close economic and transport ties with Latvia,” Leis said.
To enhance air connectivity and raise Tallinn Airport’s profile as a regional hub, the government announced three specific steps:
Continuation of a targeted route development program, supporting the launch and expansion of critical air connections. With Air Baltic holding roughly a 30% market share in Tallinn, this program also supports the airline’s continued operations in Estonia.
Freezing of Tallinn Airport’s fees for three years, sending a clear and positive signal to airlines, including Air Baltic, to consider expanding operations from Tallinn.
Investment support for the airport’s terminal expansion, as the current infrastructure had reached its capacity limits and could otherwise hinder future growth in connectivity.
Minister Leis was expected to present the detailed Tallinn Airport investment plan to the cabinet in the fourth quarter of 2025.
The government also received a briefing on the sale of aircraft and related assets owned by the state-owned company Transpordi Varahaldus. The revenue from aircraft sales was estimated at 32 million euros, with additional income expected in the coming months from the sale of engines and spare parts.
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