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Estonia to separate Nordica, Xfly under new holdco

Nordica (ND, Tallinn Lennart Meri) and two affiliates Transpordi Varahaldus, a lessor and maintenance company, and Regional Jet, an ACMI specialist now branded as Xfly (EE, Tallinn Lennart Meri), will become three separate units under a newly created holding company ahead of possible privatisation, Estonia's minister of economic affairs and infrastructure, Taavi Aas, has said.

The state-owned flag carrier’s operations would in this way be rationalised and its inefficiencies reduced, Aas told local broadcaster ERR, while also distinguishing Nordica and the two affiliated companies more clearly from each other.

“We have three strong aviation companies whose growth makes sense to release Regional Jet from its subsidiary status. This will ensure the existence of two companies operating on an equal footing, which will allow each one to outsource and grow the business. This will create the preconditions for privatisation in the future,” he explained.

The management of the three companies has so far “proven successful, but there is some duplication within the group, which we can eliminate and create a greater...

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