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18 December 2019
by Eero Pärgmäe
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Welcome to Transpordi Varahaldus (TVH)

Transpordi Varahaldus (TVH) acts as an investment entity, with the aim of financing and managing investments in fixed assets in the transport sector. TVH’s fleet consists of seven Bombardier CRJ900NG type jet engine powered passenger aircraft. All of the 7 aircraft are 88-seaters, registered in the Civil Aviation Administration’s Aircraft Register of the Republic of Estonia, and on a long-term lease to AS Nordic Aviation Group (Nordica). Nordica sublets the aircraft to Regional Jet OÜ, a joint venture of Nordica and LOT Polish Airlines.

As a result of TVH joining the Estonian Aviation Cluster (EAC), sector can start pushing forward aviation assets management agenda. This move creates better preconditions to capitalise on the growth ahead for the aviation industry globally. “We know that in Ireland, which has always been kind of role model for us, up to 100 aircraft are transitioned annually from one owner to another. Every time an aircraft is transitioned, it needs to be painted, needs maintenance-repair-overhaul (MRO). With the world’s existing commercial fleet of 27,000 aircraft set to more than double over the next half a century, ‘transitioning’ activity, including aviation assets leasing, will present a significant growth opportunity also for Estonia,” said Kristo Reinsalu, General Manager of EAC. TVH board member, Ergo Blumfeldt noted that the move to join the cluster was driven by the desire to promote the domestic aviation sector, which is much broader than just airline companies.

In parallel, Estonia has started to investigate, what would be potential benefits if country will start implementation of the Cape Town Convention Act (CTCA). The main objective of the CTCA is to ensure efficient financing of high value mobile equipment like aircrafts and engines, in order to make the operations as cost effective and affordable as possible. “The risk reduction will result in reduction in the cost of aviation credit and will also bring down the lease rentals… This will be of immense help for evolving Estonian aviation industry whether in ACMI or in MRO segment,” added Mr Reinsalu.

Finally, we can´t forget that among the major parties, we have also FinanceEstonia very active in clusters landscape. They are financial sector cluster organisation, which represents close to 100 members with common purpose: to ensure an attractive and competitive local environment and ecosystem and to be a hub for active local fintech companies and start-up’s. Estonia is yet far from doing in aviation the same, what Ireland has done successfully for many decades, but everything what regards assets management has significant growth potential also here. We look forward to identifying cooperation opportunities.

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