A northern Estonian court has declared Avies (Tallinn Lennart Meri) bankrupt following a petition submitted by two of the carrier's Swedish business partners, SwedeWings AB and Bromma Air Maintenance AB.
The firms filed a bankruptcy motion after the Estonian carrier failed to settle their claims and was late in discounting assets on its balance sheet.
The carrier had earlier told the LETA news agency that despite plummeting revenue inflows, it itself did not see any danger of bankruptcy adding that the two firms were "just small creditors."
The last twelve months have been particularly difficult for the carrier given the cancellation of three Swedish PSO contracts - Stockholm Arlanda-Mora Siljian-Sveg, Stockholm Arlanda-Hagfors-Torsby, and Pajala-Luleå - by the Swedish Transport Administration (Trafikverket) after it grew impatient with the Estonian operator's incessant flight delays and cancellations.
About twenty former Avies pilots have also filed claims against the airline for unpaid wages.
As it stands, Avies continues to operate with scheduled flights between Tallinn Lennart Meri, Kuressaare, and Kärdla locally and to Stockholm Arlanda in Sweden.
