In addition to cuts in the wages of the management board, Tallink is trying to find other avenues to cut costs in the context of declining freight transport, writes Äripäev.ee/LETA, citing Turun Sanomat.
Managing director of the enterprise Keijo Mehtonen stated that the company is preparing a cost-cutting plan and by September it will have a clear vision on where the cuts will be made.
Mehtonen commented that it is clear that the company cannot live long with the loss it made during the most recent loss. He explained that Tallink is on one hand looking for options for cutting costs quickly while also new avenues for generating turnover. All of the company’s shipping routes will be carefully reviewed in autumn and it is possible that Tallink will sell some of its vessels and, if necessary, rent ships.
According to Mehtonen, the main reason for the loss was the decline in cargo transport. He does not believe that the cargo transport volumes will recover soon – probably not before the year 2010.
Tallink generated 2.75 billion kroons of turnover during the third quarter of its financial year and earned a loss of 270 million kroons.