Estonia's airline Estonian Air is accusing the Latvian national airline airBaltic of unfair competition, according to the Estonian daily Postimees.
© Reuters/Scanpix

CEO of Estonian Air Jan Palmer says it is unfair that airBaltic announced the same flight routes as the Estonian airline.

"Frankly, I do not understand why European institutions are allowing this. Everyone knows that airBaltic is supported by the Latvian state. They are using state funds to compete with us, but we are not allowed to do this," Palmer stresses.

Postimees reports that both Estonian Air and airBaltic are offering flights to Paris, Berlin and Vienna during the summer season.

"Of course, this will affect us. At the moment, we have sold fewer tickets for flights in April than in the previous year," Palmer said.

"Vienna is a new destination for us, and there is nothing to compare it with. However, with regard to Paris and Berlin, the indicators have dropped," he added.

Palmer also said that airBaltic has suffered due to the Ukrainian crisis, as the company lost several flight routes to eastern regions.

"They have spare planes, which is why they are launching new flights," Palmer believes.

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