Summary The Baltic country's flagship carrier has been struggling financially since 2006.
BRUSSELS, Nov 7, 2015 (AFP) - The European Union on Saturday ordered Estonia s struggling state-controlled airline to pay back the 85 million euros it has received in state aid, raising questions about the future of the company.
"The European Commission has concluded that aid measures by Estonia in favour of national flag carrier Estonian Air gave the company an undue advantage over its competitors in breach of EU state aid rules," the EU s executive branch said in a statement.
"Estonian Air therefore needs to pay back the state aid already received, which according to the Commission s information amounts to about EUR85 million ($79 million) plus interest, and cannot receive an additional EUR40 million of restructuring aid," it added.
The Baltic country s flagship carrier has been struggling financially since 2006, the Commission said, adding that the company should not continue to rely on public money to survive.
"Estonian Air has repeatedly received public subsidies over the past five years but did not carry out the necessary restructuring to become viable as a business," said Commissioner Margrethe Vestager, in charge of competition policy.
"It would not be a good use of taxpayer money to keep Estonian Air in the market artificially -- nor would it be fair to competitors, which have to compete without such support."
The Commission, which has probed several other European airlines, has in the past also ordered Cyprus Airways and Hungary s Malev to pay back aid packages deemed illegal.
Both airlines were subsequently closed.
