FINNAIR IS BEING tipped the most likely among the three contenders to become the chosen partner for Estonian Air, the privatisation of which is scheduled for 1996. The others are Lufthansa and Scandinavian Airlines System (SAS). An equity-based alliance with Finnair would provide the airline with access to long-haul markets.
The Estonian flag carrier is expecting a net loss of up to four million kroons ($360,000), with a further one million kroons loss expected for 1996, before breaking even in 1997.
The airline has introduced the first of two Boeing 737-500s, beginning the gradual process of replacing its ex-Soviet fleet with new Western aircraft.
Source: Flight International
