Transpordi Varahaldus (TVH) began preparing to sell the 88-seat Bombardier CRJ900 aircraft last summer, with initial offers ranging between $20 million and $40 million, the Ministry of Climate said Monday.

Negotiations initially began with the highest bidder, but those talks ultimately did not lead to a deal. This spring, discussions resumed with the next-highest bidder, resulting in a contract with EIC Aircraft Leasing Ltd., an Ireland-registered company that is part of the Regional One group, which specializes in aircraft leasing, repair and maintenance.

Ergo Blumfeldt, a member of TVH's management board, said the lengthy sales process was typical in the aviation sector and fully justified. The contract is valued at $37.5 million, though costs associated with preparing the aircraft for flight readiness will be deducted from the sale price if needed.

"In our view, the agreed price fairly reflects the value of the assets and the current conditions in the global aircraft market," Blumfeldt said.

He added that the planes have been parked and preserved at Tallinn Airport since the end of last year.

Following the signing of the agreement, the aircraft will undergo a thorough technical inspection to assess their full airworthiness. The inspection will evaluate the impact of the parking period on the planes' technical condition, include factory-standard engine and avionics checks and involve required tests, including ground power runs for all 14 engines.

Only after fulfilling the necessary technical requirements and receiving airworthiness confirmation can the aircraft be returned to service.

"The buyer will carry out the technical inspections in July, and the entire handover process is expected to be completed by fall," Blumfeldt said.

One prerequisite for the deal to take effect is a mandatory foreign investment screening for reliability, which will be conducted by the Consumer Protection and Technical Regulatory Authority.

Nearly 30 companies expressed interest in the aircraft, with 11 submitting bids.

TVH is a state-owned company that finances and manages investments in transport sector fixed assets. In addition to the seven passenger aircraft, it owns aircraft engines and other aviation-related assets.

Once TVH's assets have been sold and its obligations settled, the owner plans to initiate a formal liquidation process for the company.

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