According to the audited financial results for 2020 the operating profit of OÜ Transpordi Varahaldus (TVH) was 1.84 million euros at a 9.38 million euro annual turnover.
According to the member of the management board Ergo Blumfeldt, the last financial year was the most complicated in commercial aviation of the last 75-years in history due to the COVID-19 pandemic. Globally, the passenger numbers fell by more than 80% and the ongoing health crisis had major negative impact on the economic results of aviation companies and the market value of aircraft. Utilization of TVH aircraft declined by 79.2% compared to 2019. Pursuant to the International Financial Reporting Standards (IFRS), TVH also carried out the impairment review of its fixed assets, as a result of which the accounting loss of the last financial year was ca 11.9 million euros.
Member of the management board Tõnis Tamme added that thanks to good cooperation with the lessee of the aircraft and the bondholders financing the company (LHV Bank and the pension funds managed by LHV), the company has taken the measures and made the changes necessary to handle the crisis and has managed to keep its business operations profitable. As a positive development Tamme mentioned that over the past few months the first signs of recovery in passenger demand are visible on the regional aviation market.
The annual accounts of TVH were audited by AS Deloitte Audit Eesti. Minister of economic affairs and infrastructure who exercises the rights of the sole shareholder of TVH approved the annual report at the shareholders’ meeting on 30.04.2021. TVH is a state-owned company with the aim to carry out and manage investments into fixed assets in the transport sector, e.g. aircraft leasing. The company owns 7 Bombardier CRJ900NG passenger jet aircraft in 88-seats configuration.