Estonian Air has seen better days — SAS may resort to the government buying out its shares in the loss-making airline.

TALLINN — Despite the fact that the state is selling off land and other state-owned companies to bring down its deficit, the Estonian government has expressed interest in buying Estonian Air.

Minister of Economic Affairs and Communication Juhan Parts said the state does not exclude the possibility of increasing its shares in the financially-struggling carrier, which in 2008 produced a nearly 176 million krooni deficit (€11.2 million). This is far from a solid proposal, though. In an interview with Eesti Päevaleht on Wednesday, Parts said that buying the company is not the only solution and it all depends where the negotiations will end up. The carrier was sold to SAS in 2003.

“It cannot be ruled out that the country has to increase its part, but it would not be forever,” told Parts to Eesti Päevaleht.

The idea has its critics. Erki Urva, former president of Estonian Air told Postimees that becoming the sole owner for the airline company would be ridiculous, claiming that Estonian Air ended up in a real catastrophe once it was fully state-owned.

SAS has been looking to sell its shares in Estonian Air since the fall of 2008.