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

Estonia’s Nordica in “liquidity crisis”, fate clear by YE23

It will be known next month whether Nordica (ND, Tallinn Lennart Meri) faces either privatisation or bankruptcy, Estonian Minister of Climate Kristen Michal told the local broadcaster ERR, affirming that the state will not put any more money into the carrier to keep it afloat.

He was speaking shortly after a memo from the Climate Ministry, whose portfolio the state-owned flag carrier now falls under, was made public last week saying that insolvency could not be ruled out. This came as the company posted a loss of EUR11.9 million euros (USD12.7 million) for the first nine months of 2023 despite a 29.8% revenue rise.

The memo said that the majority of the loss at Nordic Aviation Group AS, the parent entity for Nordica and its ACMI-focused subsidiary Xfly (Estonia) (EE, Tallinn Lennart Meri), had accumulated in just the last four months, complicating efforts to turn around the company, a process for which aviation advisory firm Knighthood Global was hired this summer to contribute to.

The note pointed to issues in four...

SAS eyes leisure market with more in-house, year-round ops

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...

SAS Link to dry-lease more E195s