newstodate.aero

Apr 12, 2024 (newstodate): Efforts to sell the state-owned Estonian carrier Nordica have been stalled.
   In the end, the country's Ministry of Climate entrusted with the task of managing the privatization process concludes that it ended without results, with  only two potential bidders on the list after earlier claiming to have received "several non-binding offers".
   According to Estonian media, the offers proved to be financially insufficient, contained conditions unsuitable for the seller, conditions deemed unacceptable to the shareholder, and one company did not provide adequate information about the origin of the capital used for financing the deal.
   -The Nordic Aviation Group continues to operate. In order to recover, costs will be reduced, existing contracts will be renegotiated to improve their profitability. The aim is to keep the business stable, solve problems and reach privatization, Sander Salmu, undersecretary for mobility and transport at the Ministry of Climate and a member of NAG's board, told media.
   -It is still possible that Nordic Aviation Group will not be able to manage on its own due to past mismanagement, but the cutbacks and additional revenue plans made by the management of the company will allow it to continue operations and to prepare for a new sale of the company, either separately or in conjunction with the state-owned company Transport Asset Management, which leases aircraft to Nordica, or for a sale of Transport Asset Management on its own, he said.
   Nordica is now starting preparations for a new privatization process with an advisor, overseen by the ministry.  
   Headquartered in Tallinn, the Nordica group operates flights under two brands, two IOSA-certified AOC’s - XFLY operating nine ATR72-600 and nine CRJ900, and Nordica operating four A320 aircraft.