OREANDA-NEWS. July 14, 2014. The European Commission ruled that methods used to restructure Latvian state-owned airline Air Baltic were in line with EU regulations, which could be a good sign for Estonian Air, which is under similar scrutiny.

The Commission found the reconstruction made the company viable in the long-run and did not violate competition laws, LSM reported.

The Commission had been looking into questions concerning Latvia’s 2011 loan worth 22.65 million euros to the 98 percent state-owned company, the interest on which was reduced just two months after it was granted.

The government has long-term plans to sell off the company, which recorded a 27 million euro loss in 2012, but turned that into a 1 million euro profit last year.

“The Air Baltic decision is no doubt positive, especially in the light of all the Baltic Air connections,” Rasmus Ruuda, a spokesman for the Estonian Ministry of Economic Affairs, said.
The Commission began a similar investigation into 40 million euros of state aid given to Estonian Air, also for restructuring purposes.