Estonia's Xfly to seek more ACMI customers, no privatisation

Estonian state mismanaged, should sell Nordica - auditor

Estonia’s state auditor has delivered a damning evaluation of the state’s ownership of flag carrier Nordica (ND, Tallinn Lennart Meri) and lessor Transpordi Varahaldus, both subsidiaries of Nordic Aviation Group, concluding that “it would be reasonable to sell” them.

“Nordica’s course suggests that the state has not been a sufficiently skilled or interested owner in such a complex business area as aviation,” the National Audit Office (Riigikontroll) said in a statement posted on its website on September 20.

According to the auditor, arguments in favour of keeping both airline and lessor in state ownership were lacking well before reports of their serious financial difficulties emerged in July, “and they are still scarce.” Estonia’s current government plans to merge Nordica with Transpordi Varahaldus and then privatise them.

The National Audit Office analysed how the state, as owner for more than seven years, has directed the activities of Nordic Aviation Group, what has been expected of the companies, whether Nordica and Transpordi Varahaldus have succeeded in meeting their goals, and whether the state operating...

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No plans to buy Estonia’s Nordica, says airBaltic CEO

airBaltic (BT, Riga) has no wish to buy Nordica (ND, Tallinn Lennart Meri) even if the loss-making Estonian state-owned flag carrier returns to profit, the chief executive of its Latvian counterpart, airBaltic, told the Estonian television news program Aktuaalne kaamera.

Speaking after Tallinn ushered in a period of restructuring at Nordica, Martin Gauss said he was hopeful that the airline and its ACMI-charter subsidiary Xfly (Estonia) would be able to become profitable again under the leadership of a new professional team, but airBaltic has no plans to acquire the airline even then.

The Latvian state-owned airline briefly wet-leased a CRJ900 from Xfly earlier this year.

Like Nordica, airBaltic has also been grappling with spare parts supply issues since the pandemic but is still able to operate the flights it scheduled.

“The acquisition of Nordica would not be possible at this time. According to the rules of the European Union’s coronavirus aid, we are not allowed to buy other airlines at the moment - this is one of the...