Estonian state-owned airline Nordica has announced that it will cease operations and file for bankruptcy after investor Lars Thuesen backed out of a deal on the 18th of November, prompting Nordic Aviation Group AS and Regional Jet OÜ (Xfly) to suspend operations, the company said on Wednesday, the 20th of November, reports Estonian media ERR.
“Unfortunately, the potential investor announced on Monday that it does not intend to proceed with the privatisation due to excessive risks,” explained Kadri Land, Chairman of the Supervisory Board of Nordic Aviation Group.
“Therefore, the Management Board informed the Supervisory Board of its decision to wind up Nordic Aviation Group and Xfly and file for bankruptcy.”
Remco Althuis, CEO of Nordic Aviation Group, said that the company would file for bankruptcy as soon as possible and had informed its employees and partners, including aircraft lessors. The Group intends to return all aircraft as soon as possible and will follow the formal bankruptcy procedures, including informing the Estonian Unemployment Insurance Fund.
In October, the company had 579 employees, 286 of whom are based in Estonia.
The Republic of Estonia is the sole owner of Nordic Aviation Group and its subsidiary Xfly.
Nordica, which operated flights from Tallinn until autumn 2019, was currently offering outsourcing services.
The government started privatising the company at the end of 2023.
Nordic Aviation Group started operations in 2015.