TransAviaBaltika (KTB, Kaunas International) has been awarded a five-year Public Service Obligation (PSO) contract covering Kärdla and Kuressaare in Estonia and will add an ATR42-300 for the latter route, public broadcaster ERR has reported.

The airline will add the ATR - Avions de Transport Régional turboprop due to the government's requirement that the route to Kuressaare is served with an aircraft equipped with at least 40 seats.

The PSO award is not yet final and could be a subject of an appeal. TransAviaBaltica declined to comment until the contract is finalised.

If confirmed, the Lithuanian carrier will receive up to EUR25.5 million euros (USD28.8 million) for flights from Tallinn Lennart Meri to Kärdla on Hiiumaa island and Kuressaare on Saaremaa.

TransAviaBaltika currently serves both islands using Jetstream 32 aircraft ES-PJR (msn 949) under the virtual brand Saartelennuliinid (Tallinn Lennart Meri). Flights to Kärdla will continue to be operated with the same aircraft.