Estonian Review 10 - 16 September 2010

EU FOREIGN MINISTERS MEET IN BRUSSELS
FOREIGN NEWS
DOMESTIC NEWS
DEFENCE NEWS
ECONOMIC NEWS

EU FOREIGN MINISTERS MEET IN BRUSSELS

Rapid Aid for Humanitarian Crisis in Pakistan is Important

10 September - At the Foreign Affairs Council today, the European Union foreign ministers confirmed that the situation in Pakistan after the severe flooding requires continued aid from the European Union. Pakistan’s humanitarian aid needs will remain the same in the near future, and the ministers agreed that taking into account the scope of the disaster, international aid should continue. “Therefore Estonia considers the European Commission’s decision to allocate an additional 30 million euros to Pakistan to be appropriate,” said Foreign Minister Urmas Paet. “Estonia is sending its experts to Pakistan to the joint mission of the International Humanitarian Partnership co-operation network. In addition, Estonia donated one million kroons to support the activities of the World Food Programme,” he added. Thus far the European Union has donated 70 million euros for humanitarian aid in Pakistan, and the total contribution of the member states is nearly 150 million euros.
Discussions about concluding a free trade agreement with our strategic partner South Korea will continue on Monday during the General Affairs Council. The ministers hope that the economic partnership agreements with the African, Caribbean and Pacific group states will also be concluded. “Relations with these states must progress—it will be useful for the economies and trade of all parties,” Paet explained. The foreign minister added that taking into account the upcoming European Union-Africa summit in November, Europe would like to reach an agreement with its partner developing nations regarding the conditions of the agreement as quickly as possible.
In the first exchange of ideas regarding the European Union investment policy there was unanimous support for a fresh initiative that would allow for a framework to be created for new investment agreements between the European Union and third countries. This would improve access to foreign markets for European Union investors and increase legal certainty and investor protection in third countries. Most member states, including Estonia, wish for the investor protection that is currently backed by bilateral agreements to be retained and improved by the agreements made on the European Union level.

EU Values Relations With Its Neighbours

11 September - At the European Union foreign ministers’ meeting in Brussels, Foreign Minister Urmas Paet said that the EU’s relations with its neighbours are as important as its relations with larger countries and that the EU Neighbourhood Policy requires complete attention and dedication. “If the EU fails in its own neighbourhood, it will be difficult to succeed elsewhere,” said Paet.
Paet noted that the EU and its member states must consider how to determine the union’s strategic goals and partners. “In determining strategic partnerships, we must weigh many strategically influential factors in addition to economic and trade potential, such as stability, regional and international ties, the prevalence of terrorism, weapons of mass destruction and crime, energy security, military and crisis management, immigration flow, the system of values, culture, etc.,” Paet said, listing various factors of the EU’s foreign policy.
The EU foreign ministers confirmed the need to develop goal-related relations with the union’s strategic partners China, India and Brazil. Foreign Minister Paet stressed that while the union is developing indisputably necessary relations with these countries, it must also continue intensifying co-operation with the USA and other democratic nations. “Close co-operation with NATO is also necessary,” Paet noted.
Paet added that the discussion on the EU’s strategic relations must also be expressed in the division of resources in the EU External Action Service.
During the Gymnich meeting in Brussels, the EU foreign ministers also met with EU candidate countries Turkey, Croatia and Macedonia*.
Foreign Minister Urmas Paet emphasised that Estonia supports the steady movement of Turkey, Iceland and the Western Balkan countries towards accession to the European Union. “Close communication and co-operation help make preparations successful. Estonia is also open to helping and will gladly share its experiences related to accession,” Paet stated.
“Estonia hopes that Croatia will be able to complete the preparations necessary for accession in the first half of next year,” said Paet.

FOREIGN NEWS

President, Prime Minister Discuss Economic Ties with Serbian Head of State

14 September - “Serbia’s future lies in the European Union, where integration among European countries around shared values has enabled member states to enjoy peace and prosperity thanks to the shoring up of democracy, human rights and the rule of law,” said President Toomas Hendrik Ilves to Serbian head of state Boris Tadić, who is in Estonia on an official two-day visit.
The Estonian head of state described Serbia’s progression towards the European Union since it submitted its accession application as “a clear indication of its commitment”. “Now is the right time to take the next step on the path towards Serbia’s integration,” President Ilves said. “And that step is the decision of the EU’s Foreign Affairs Council to forward Serbia’s accession application to the European Commission, who then need to present their own views.”
In speaking of the benefits of EU support for Serbia, President Ilves said: “We can show our near neighbours that we understand and support countries that are successful in their approach to the European Union. This will strengthen relations based on our shared valued and increase stability, not only in the Western Balkans, but throughout Europe.”
In discussing Kosovo, the Estonian president welcomed the recent resolution of the United Nations General Assembly and the willingness of the EU to mediate a dialogue between Belgrade and Pristina.
“I welcomed your words following the ruling of the International Court on the independence of Kosovo, when you said that Serbia will continue to move towards the EU and that the union needs the kind of Serbia that is able to resolve the Kosovo issue constructively,” said President Ilves to the Serbian president.
The Estonian and Serbian heads of state agreed that the political and economic ties between their two countries have grown stronger in recent years. There has been important co-operation between Tallinn and Belgrade in the fields of information and communications technology and the development and use of oil shale processing technology. In the case of the former, Serbia already has the Estonian state's X-roads software at its disposal, and a number of Estonia’s ICT companies are interested in launching or expanding operations in Serbia.
Prime Minister Andrus Ansip also met with Serbian President Boris Tadić. Prime Minister Ansip expressed his satisfaction that relations between Estonia and Serbia have become much closer.
“Our bilateral relations have proven very fruitful,” said Ansip. “You can see that not only in the regularity of high-level visits between our two countries, but also in our economic co-operation, which has been given a real boost.” Ansip added that there are very good conditions for further strengthening of economic ties, highlighting co-operation between Estonia and Serbia in oil shale.
“We’ve already taken the first few steps in this area, and we hope to get more of a running start once the financial situation allows it,” said the Estonian prime minister. Tadić says that Serbia is very interested in learning from Estonia’s experience in the use of oil shale. “We really want to know what your experts think about how we can make the best use of our own oil shale resources,” said the Serbian president. “And we value Estonia’s experience in terms of technology and environmental protection in the oil shale industry just as highly.”
The Estonian prime minster also spoke to the Serbian president about e-government and gave him an overview of the e-services available in Estonia.

Baltic States Must Co-operate to Address Current Issues

10 September - “Our co-operation must focus on today’s issues in what is the 20th year since the restoration of the independence of the Baltic states. The most important tasks include linking the Baltic states with Europe via Via Baltica and Rail Baltica and developing an effective electricity market in the Baltic states as part of the common electricity market with the Nordic countries,” said President Toomas Hendrik Ilves at a meeting of the Estonian, Latvian, and Lithuanian heads of state that began this afternoon in Riga. According to President Ilves, the Baltic states, as with all of the other Baltic Sea countries, are currently living in the most secure period in their history. “We have adopted the right decisions and made some serious efforts. Today we all need to use equally creative thinking and strict self-discipline to emerge from the current recession, and one of the pre-requisites for achieving this objective is more efficient economic co-operation in the Baltic Sea region,” said the Estonian head of state. “Here, in Riga, I would like to express my greatest acknowledgement to the efforts of the Latvian government and parliament, which has helped the economy of your country to overcome what has been the most trying period in your recent past,” President Ilves added.
When speaking of the economy of the EU in general, the president assured that Estonia is interested in working on a common internal market that supports the contemporary and competitive development of the EU.
“The objective is rather simple: everyone, regardless of their size at their time of joining the European Union, must be accorded fair treatment, which also means the alignment of various supports and subsidies,” the Estonian head of state said.
The presidents of the Baltic states – Mr. Toomas Hendrik Ilves, Mr. Valdis Zatlers, and Ms. Dalia Grybauskaite – and the Polish Head of State, Mr. Bronislaw Komorowski, who joined them this evening, discussed trans-Atlantic relations aside from regional co-operation.
“The EU’s partnership with the United States of America is its most important strategic partnership,” emphasised the Estonian head of state. “Some decisive steps must be taken concerning the long-term strengthening of the economies of both Europe and North America, such as making further progress in creating a trans-Atlantic market zone.”

Estonia Supports Demining in Afghanistan

14 September - The Foreign Ministry made a contribution to the fund for demining Afghanistan within the UN Voluntary Trust Fund for Assistance in Mine Clearance.
Foreign Minister Urmas Paet stressed that Estonia wants to contribute to the demining of Afghanistan to help make the work of Estonian and other international security forces and the everyday lives of the Afghan people safer. “The demining fund supports the clearing of minefields, the destruction of mine stockpiles, assistance for victims, and mine-risk education,” said Paet. “Concrete steps are needed to move away from landmines and other remnants of war and towards a free world – so that one of our soldiers or an Afghan child would not be killed or their quality of life permanently affected by injuries,” emphasised the foreign minister.
Paet noted that by supporting the destructions of landmines, Estonia is contributing to the restoration of a safe and normal environment.
The UN Mine Action Project was created in October 1997 to co-ordinate anti-mine activities and take steps towards demining minefields. The fund receives over 50% of its resources from voluntary donations and the remainder come from UN peacekeeping appropriations.

EU May Support Pakistan with Economic Opportunities

16 September - In today’s extraordinary session of the European Council in Brussels, the European Union foreign ministers discussed possibilities for giving trade concessions to flood-ravaged Pakistan, as well as other further steps by the European Union to alleviate the situation there.
Foreign Minister Urmas Paet stated that taking into account the tremendous damage to Pakistan caused by the floods, Estonia feels that there is obviously a need to support Pakistani industry with greater access to the EU market. “Intensifying trade ties will speed up Pakistan’s economic development and support the nation’s stability,” Paet added.
Paet said that Estonia supports intensifying relations between the EU and Pakistan as well as increasing the EU’s role in helping to develop a stable Pakistan. Pakistan’s greatest interest in relations with the EU is receiving favourable conditions for its exports.
The humanitarian situation in Pakistan has not improved in the interim. Access to the crisis areas is still poor, getting aid to people is difficult, and the security of aid workers is not guaranteed. “A build-up of tension within the country must be avoided to ensure safe access to those in need,” Paet noted.
The Estonian foreign minister said that the complicated security situation in Pakistan is closely tied to developments in Afghanistan and in the region more broadly. “Among other things, the European Union’s activities must be geared towards developing co-operation among Pakistan and the other countries in the region to fight organised crime and the drug trade and hinder the movement of terrorists across borders,” he stated.

Ansip, Kroes Discuss Development of Single Digital Market

13 September - Prime Minister Andrus Ansip and European Commission Vice President and Commissioner for Digital Agenda Neelie Kroes discussed issues relating to the creation of a single digital market in the European Union at their meeting in Stenbock House.
The prime minister said that for Estonia, a single digital market means the possibility to provide public and private sector services across borders with the help of the Internet. He believes that progress in this area is extremely important for the competitiveness of all of Europe.
“Estonia considers the lack of a digital market one of the main factors that curbs the competitiveness of the European Union," said Ansip. “We believe that prerequisites for a single market include the ability of information systems to exchange cross-border information as well as harmonisation of the legislation required to keep the internal market functioning.” The prime minister described the solutions implemented in this field in Estonia and pointed out that holders of digital IDs in Finland, Portugal, Belgium and Lithuania can use the Company Registration Portal of Estonia.
“Options like this should become the norm throughout the European Union," said Ansip. Commissioner Neelie Kroes agreed with Andrus Ansip and said that creation of a single digital market is essential for economic growth and increase of employment in Europe.
Kroes added that member states needed to take certain steps and wherever necessary, use the experience of the countries where developments in the e-world have been noticeable. “Estonia is certainly one of the countries that can inspire others,” said Kroes. “The fact that businessmen can establish a company in a very short time using their ID cards is truly impressive.” According to plans, the single digital market should be established by 2015.

Free Trade Agreement to be Concluded With South Korea

16 September - In today’s extraordinary session of the Foreign Affairs Council within the framework of the European Council in Brussels, the European Union foreign ministers agreed to conclude a free trade agreement with South Korea. According to Estonian Foreign Minister Urmas Paet, the signing will take place during the EU-South Korea summit on 6 October 2010.
A free trade agreement with strategic partner South Korea is important to the entire European Union. “It will enliven our economy, create new opportunities, and bring investments,” stated Foreign Minister Urmas Paet. “Estonia is certain that the EU’s position in Asia will become notably stronger when the agreement comes into effect,” Paet added. It is also essential to give positive signals to South Korea, as it is one of the European Union’s strategic partners. The free trade agreement coming into effect on 1 July 2011 will offer both sides significantly greater freedom in exchanging goods and services and establish certain regulations regarding competitiveness, procurement, and other matters. Before the final signing, the agreement must also be approved by the European Parliament.
Among other things, the agreement will extend the favourable circumstances with South Korea given by the USA’s free trade agreement to European Union producers.
South Korea is the European Union’s eighth trade partner by size, and the EU ranks as South Korea’s second export partner. In addition to trade regulations, the free trade agreement also contains terms for sustainable development in social and environmental issues as well as a protocol for cultural co-operation.

Foreign Ministry Secretary General Met With European Union Colleagues

14 September - Foreign Ministry Secretary General Marten Kokk met with his colleagues at the informal meeting of secretaries general of European Union foreign ministries in Brussels. Secretary General Kokk noted that the tightened budgets of the EU member states’ foreign services have brought about positive developments, as practical co-operation between foreign ministries has increased. “We just concluded an agreement between the Estonian and Finnish foreign ministries, by which an Estonia diplomat will begin working at the Finnish Embassy in Lusaka, Zambia as of January 2011. In Cairo, the Estonian and Latvian embassies are located in the same building—in addition to each having their own embassy rooms as well as some shared spaces, they also co-operate to help citizens with consular questions,” said Kokk, listing examples of Estonia’s co-operation experiences with other countries. The secretaries general also addressed how IT solutions can be helpful to the fundamental work of a foreign ministry. “The Estonian Foreign Ministry’s Facebook page was a tremendous help for aiding citizens during the flight traffic chaos caused by the ash cloud from the Icelandic volcano,” the secretary general said, giving an example of how ministries can use popular social media networks to their advantage.
While talking about the EU External Action Service (EEAS) during the meeting with High Representative for Foreign Affairs and Security Policy Catherine Ashton, Secretary General Kokk emphasised that it is necessary to fully take advantage of the opportunities that come with creating a foreign service. Kokk said that the decisions for delegation directors and deputy directors of the EEAS should be made public during the month of September. However, further rounds of applications for filling out the European External Action Service still lie ahead.

Foreign Minister Met With Metropolitan Hilarion

15 September - Today Foreign Minister Urmas Paet met with Metropolitan Hilarion, chairman of the Moscow Patriarchate's department for external church relations, which whom he spoke about the congregations in Estonia that are under the Moscow Patriarchate and Estonia-Russia cultural contacts.
Foreign Minister Urmas Paet said to Metropolitan Hilarion that all of the churches named in the protocol of the plan signed in 2002 have by now been given over to the Moscow Patriarchate Estonian Orthodox Church with a 50-year right of superficies. The foreign minister also noted that very favourable circumstances are created for the activities of congregations. “The Estonian state supports all congregations active in Estonia on an equal basis. We have contributed to fixing up churches through the National Heritage Board and the Ministry of the Interior, and since 2003 the congregations and the repairs to churches subject to the Moscow Patriarchate have been supported with over 10 million kroons,” said the foreign minister, adding that Estonia is open to continued dialogue. Foreign Minister Paet also noted during the meeting that the 100th anniversary of the Assumption Cathedral in Pühtitsa nunnery is an important event for both orthodox believers and for Estonia’s entire multi-cultural society. “In addition to its religious significance, Pühtitsa nunnery is also an historical and cultural monument and a spiritual centre in Estonia,” he said.
In talking about contacts between Estonia and Russia, Foreign Minister Paet and Metropolitan Hilarion acknowledged that communication between people in cultural and educational co-operation between the two countries has picked up recently. “The ‘Golden Mask’ Theatre Festival, which begins soon, will once again bring exciting performances from Russia to Estonia. This week a delegation from Tallinn University will introduce Juri Lotman’s monograph ‘The Unforeseen Mechanisms of Culture’ in Moscow universities and the Library of Foreign Literature,” said Paet, giving examples of the diverse cultural contacts. “The major event of next year is definitely the opening of the St. John’s Church in St. Petersburg,” asserted the foreign minister.

Estonian Ambassador to Ireland Presents Credentials

15 September - The new Ambassador of the Republic of Estonia to Ireland Mait Martinson presented his credentials to President Mary McAleese.
In the discussion following the presenting of credentials, Ambassador Mait Martinson and President Mary McAleese discussed Estonia-Ireland bilateral relations and opportunities to develop them further. President McAleese mentioned that with European Union membership, many co-operation areas opened up and common interests also grew. The Irish president recalled with gratitude her own personal contacts with Estonian state leaders and the reciprocal visits that have taken place. President McAleese said that it is important that the current generation in both countries realise the changed circumstances and use these in the best possible way in domestic, bilateral, and pan-European endeavours.
Mait Martinson was born in 1969. In 1993 he graduated from the economics department of Moscow State University. Mait Martinson began working in the diplomatic field in 1993 as an attaché of the Foreign Ministry’s external economic policy department. From 1994-1995 Martinson was a third secretary in the external economic policy department, and from 1995-1996 he was the director of the Central and Eastern Europe division in the same department. Following that, from 1996-1999 he worked in the Estonian Embassy in Washington. From 2000-2002 Martinson was the trade negotiator for the external economic policy department. From 2002-2007 he was the Estonian Ambassador in Beijing. Prior to assuming his current position, Martinson was the director general of the Foreign Ministry’s state protocol department.

DOMESTIC NEWS

Life Expectancy Rises to 75 Years in 2009

14 September - Life expectancy in Estonia rose by almost one year in 2009 and was the highest ever for both the male and the female component of the population, data released by the national statistics office on Tuesday show. Average life expectancy rose by nearly one year to 75 years. The increase was slightly smaller than in 2008, when life expectancy at birth rose by 1.1 years.
It appears from data of Statistics Estonia that the gap between men's and women's life spans is among the widest in the European Union at 10.2 years. The difference has started to diminish in the last couple of years. As recently as two years ago men could expect to live 11.6 years less than women, which was one of the biggest disparities recorded in the last two decades, Helerin Rannala from the population statistics division said.
Last year life expectancy for men fell narrowly short of the 70 year mark at 69.8 years whereas life expectancy for women climbed over 80 years (80.1 years). A comparison of Baltic states' statistics shows that Estonia had the highest life expectancy at birth in 2009. Rannala said life expectancy in the other Baltic states has likewise been rising in recent years in common with the general European trend.
The rise in life expectancy last year was most strongly influenced by a decline in the number of deaths. A marked decrease was recorded in deaths from cardiovascular and digestive diseases and accidental deaths. Another key indicator affecting life expectancy - infant mortality - declined by 30%.
Going by this year's figures, it can be assumed that life expectancy may not continue rising as fast in 2010, Rannala said. There have been very many deaths by fire and by drowning.
Although life expectancy in Estonia has risen in recent years as more and more emphasis is put on the quality of life and healthy living it still remains among the lowest in Europe.

DEFENCE NEWS

Ämari Air Base Shows Solidarity of NATO Allies

15 September - At the opening of the NATO air force base runway in Ämari in Harju County today, Estonian President Toomas Hendrik Ilves described the event as one of great military and political significance. The head of state said that the completion of the air base would make it much easier to bring allied troops and their equipment to Estonia in the event of a crisis situation. “It is obvious that a small country like Estonia would need the help of its allies in the event of a serious military crisis. Likewise, it is obvious that no matter how willing someone is to provide this help, they cannot do so without the proper infrastructure. Let’s be honest: until today our ability to accept the airborne help of our allies has been extremely limited.”
President Ilves underscored the fact that when the complex as a whole is completed in 2012, NATO will have one of the most modern air force bases in the region at its disposal, which will contribute to the efficiency of the alliance’s air security mission. “The construction of the Ämari Air Base, which was jointly financed by the Estonian state and NATO, is a perfect expression of the solidarity between allies in everyday life,” said the president. “NATO covered almost 35% of the cost of the project – which is a considerable sum, given that the total cost of the project is more than a billion kroons. This shows that NATO’s allies understand the importance to the alliance as a whole of ensuring the security of its new member states.” President Ilves stressed that NATO’s readiness to support Estonia was dependent on the country’s own readiness to work hard in the interests of national security and to finance it at an acceptable level.
“Estonia has been able to keep its national security expenditure close to the level of 2% of GDP during the recession. The government has set itself the objective of achieving this level in the state budget by 2012. The more a country invests in its own national security, the more seriously its views will be taken in terms of security policy – not just in NATO, but in other organisations as well.”

ECONOMIC NEWS

Output of Renewable Energy Triples in 2009

13 September (BNS) - The production of electricity from renewable sources in Estonia in 2009 increased nearly threefold compared to the preceding year, Statistics Estonia said on Monday. The main factor behind the rise was the launch of new wood chip-powered combined heat and power plants. Until 2007 the share of renewable energy in overall output was around 1%, but in 2008 it climbed to 2% and in 2009 to 6.1%. Although the proportion of wind and hydro energy is still relatively small, making up less than 3% of total output, a significant development took place in 2009. As a result of the installation of new wind turbines, wind energy production increased by 47%, compared to 2008, while the production of hydro electricity increased by more than 14%.
Total output of electricity in 2009 came to 8 779 gigawatt-hours, which is nearly 17% less than in 2008. The decline in electricity production was caused by decreasing demand by the local business sector and a considerable increase in electricity imports compared to exports. Imports more than doubled compared to 2008.
Compared to 2008, the production of oil shale declined by about 8% due to the decreased needs of power stations. Due to stable external demand and good weather conditions, the production of other domestic fuels, such as wood and peat, increased. The production of wood pellets was 45% bigger than in 2008.
During the last ten years, shale oil has become an important export commodity in the energy market. Shale oil production increased by about 10% year-on-year in 2009 and exports of shale oil increased by more than a third, or 35%.
Estonia's total imports of energy products decreased 5% compared to 2008. Import of natural gas decreased the most, by more than 30%, as a result of chemical industry’s lower demand for natural gas as raw material.

Exports Soar 32 Percent, Imports 24 Percent on Year in July

10 September (BNS) - Estonian exports of goods at current prices grew by 32% and imports by 2% year-on-year in July, and the trade deficit was 0.7 billion kroons (EUR 44.7 mln), the national statistics office said.
In July Estonian exports amounted to 10.9 billion kroons and imports totalled 11.6 billion kroons. Exports increased by 2.7 billion kroons and imports by 2.2 billion kroons on annual comparison.
Due to faster growth in exports compared to imports, the trade deficit decreased and was nearly two times smaller than in July 2009, Statistics Estonia observed.
Estonian exports to European Union countries totalled 7.1 billion kroons, making up 65% of total exports. Imports from EU countries, at 9.5 billion kroons, accounted for 81% of total imports.
Compared to June 2010, exports increased by 7% and imports declined by 3% in July.

Hotels Receive 11 Percent More Tourists in July Than Last Year

10 September (BNS) - At the peak of the tourist season in July 357 000 tourists stayed in Estonian accommodation establishments, which marks a year-on-year increase of 11%, the national statistics office said.
In July 35 000 more tourists than in the same month a year earlier used the services of accommodation establishments. The number of foreign tourists grew by 24 000 and that of domestic tourists by 11 000.
In July the services of accommodation establishments were used by 244 000 foreign tourists of whom 57% came from Finland, 7% from Germany and 5% from Russia.
More Estonian residents too stayed at hotels in July. Domestic tourists numbered 113 000, up by 11% year-on-year. The most favoured tourist destinations for Estonian residents are Pärnu and Pärnu County, where 16% of them stayed.
In July there were a total of 1 033 accommodation establishments with 20 200 rooms and 46 300 beds at the tourists' disposal.
The average cost of a guest night, at 413 kroons (EUR 26.4), was 5% smaller than in July 2009. For the first time the highest cost of a guest night was recorded in the southwestern seaside resort of Pärnu - 550 kroons on the average. Compared to July 2009, the average cost of an overnight stay in Pärnu increased by 12%. In the capital city Tallinn a guest night cost 462 kroons on the average, down by 8% on annual comparison.

Enterprise Estonia to Hold Investment Opportunities Conference in London

15 September (BNS) - Enterprise Estonia (EAS) and the British-Estonian Chamber of Commerce will hold a conference in London on 16 September on investment opportunities in Estonia. The conference is intended for companies interested in investing in Estonia and establishing business contacts. More than a hundred interested parties are expected to take part, including some from the banking sector and the medical sphere, Enterprise Estonia said.
The main speaker at the conference is Economic Affairs and Communications Minister Juhan Parts. The British host is Sir Stuttard, a former mayor of London.
The speakers in the main panel include board member of AS Tallinna Vesi (Tallinn Water Co) Ian Plenderleith and CEO of Skype Sten Tamkivi. The moderator of the main panel is Edward Lucas from The Economist.

Estonian Air Eyeing 30 Destinations Across Europe

13 September (BNS) - The acquisition of new, smaller aircraft enables the Estonian carrier Estonian Air to serve a larger number of destinations profitably and the company's strategic goal is to bring the number of direct European destinations to 30. The CEO and president of Estonian Air, Andrus Aljas, told reporters on Monday that the company's primary focus was on flights lasting up to 2.5 hours. The number of passengers on the routes must be sufficient for twice daily operation. This means that there are plans to open new routes, but the managers speaking to reporters on Monday would not reveal more.
Aljas underscored the importance of Estonian Air's cooperation with KLM and SAS, which allows the company to offer a large number of final destinations with a single change of aircraft.
The first two of the brand new Bombardiers to be delivered will be taken into use by Estonian Air from the beginning of next year and the third in 2012.
Estonian Air will not reveal the price of the aircraft or details of the deal's financing arrangement. One of the financing parties is from Canada and as part of the down payment the company will use money to be received as an equity investment by the Estonian state. In connection with the arrival of the Bombardiers, Estonian Air will return the two Boeings it is currently using under a lease agreement.
The CEO emphasised that Estonian Air was buying the three aircraft under the same terms as agreed in the original agreement from 2008. If negotiations on the purchase of the planes were to be started from scratch the price definitely would be higher, he said, answering a question from a journalist. Originally the purchase was agreed as part of a larger acquisition of aircraft by the Scandinavian SAS group, which helped to bring the price lower, Aljas explained.