SAS wants to become majority shareholder in Estonian Air and Air Baltic - report

Airline Industry Information, May 18, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Jorgen Lindegaard, CEO of the Scandinavian airline SAS, has reportedly said that the airline wants to become the majority shareholder in the national carriers of both Estonia and Latvia.

Currently SAS has a 49% stake in Estonian Air and 47.2% in Latvian airline Air Baltic.

"In due time, we are interested in making use of our present options to become majority shareholder in both Estonian Air and Air Baltic," the CEO reportedly said at the Baltic Economic Forum, but did not specify target levels.

"We do not wish to be a Scandinavian company with Scandinavian branches in the countries of the Baltic Sea," Lindegaard was quoted as saying, adding: "We want to be a group consisting of Latvian, Lithuanian, Estonian, Danish, Swedish, Norwegian and Finnish companies."

The CEO said that SAS that would shortly establish Air Baltic in Lithuania and start extended operations from the capital of Vilnius.

Air Baltic plans to open five routes from Vilnius in June 2004 and another four routes in August 2004, reported Reuters.

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