On the proposal of the Ministry of Economic Affairs and Communications, the government agreed to increase the share capital of AS Tallinna Lennujaam by 20 million euros. The purpose of increasing the share capital is to finance the stage I investments of the southern area of Tallinn Airport and improve the company’s creditworthiness.
The main objective of the activities of AS Tallinna Lennujaam is to offer international air connections that contribute to the development of business and tourism and to create an environment and conditions for the development of air cargo and aircraft maintenance business that support the increase of the competitiveness of entrepreneurship in Estonia, including that create additional jobs.
“Following COVID, we are in a situation where it is necessary to continue investing in the future developments throughout the economy,” said Taavi Aas, the Minister of Economic Affairs and Infrastructure. “Tallinn Airport is a part of a bigger plan that covers also the development of national railroad, Rail Baltic, 2+2 highways, and so on,” he added.
According to Riivo Tuvike, the Chairman of the Management Board at Tallinn Airport, continuing with the investments is of utmost importance given the current situation. “In order to successfully overcome the crisis, we need to continue with strategically important investments that have a long-term positive effect.”
According to Tuvike, the greatest potential for increasing own revenue lies in expanding the aircraft maintenance and air cargo operations. “This is an important field for the Estonian economy and the aviation sector. We want to contribute to the extension plans of our tenants and invest 43.5 million euros in the first development stage of the southern area of Tallinn Airport,” Tuvike concluded.
The objective of stage I of the Tallinn Airport southern area is to develop the infrastructure of air cargo and fleet maintenance at Tallinn Airport. Total cost of investment is 43.5 million euros, out of which 7.3 million euros are the construction cost of infrastructure and the construction of buildings for the provision of cargo handling and aircraft maintenance services for the purpose of leasing costs 36.2 million euros. Stage I of the development will be completed in 2021–2024, funded by the state’s investment and loan. In the course of the project, the infrastructure related to the building of plots and facilities related to the goods handling service will be built.
The decision to increase the share capital is conditional and the entry into force of the decision depends on the preliminary assessment by the Statistical Office of the European Union of defining the transaction as a financing transaction.
Tallinn Airport is the largest airport, belonging to the Estonian state, which has gained popularity as the world’s cosiest airport and has been repeatedly chosen as an airport with the best service in Europe. In addition to the Tallinn Airport, the company operates another six airports in Estonia.