EMCC European Monitoring Centre on Change

Aero Airlines

Company/Organisation:
Aero Airlines

Geographic Location

Country: Estonia
Region: Põhja-Eesti; Eesti
Location of affected unit(s): Tallinn (Põhja-Eesti)

Company

Sector: Transportation / storage
Transportation and storage
51 - Air transport
Number Employed: 130
Group: Finnair

Employment Effects

Announcement Date: 18-12-2007
Planned Job Reductions min: 130
Planned Job Reductions max: 130
Type of Restructuring: Bankruptcy/Closure
Employment Effect Start: 06-01-2008
Foreseen End Date: 06-01-2008
Direct Dismissals: 130

Additional Information

Aero Airlines, an Estonian-registered subsidiary of the Finnish airline Finnair, was shut down in Tallinn in January 2008 dismissing 130 employees.Aero Airlines, founded in 2001, was offering international scheduled services between Tallinn and Helsinki and between three Finnish destinations. In January 2008 the company ceased its operations because of the new strategy of Finnair. In 2007 there were dicussions regarding the possibility of concentrating on charter flights in Aero Airlines, but its Estonian background was considered to diminish the possible profits. Additional problems are related to the wages which increase too fast in Estonia and the working and rest time act that is stricter in Estonia than in Finland and than in the European Union in general.However, the employees affected by the job cuts are offered work in the parent company Finnair in Helsinki. Some 25-30 empolyees are already willing to continue working in Finnair but the managers of Aero Airlines hope that the number will increase to 50-60.