The Estonian government’s Nordic Aviation Group (Nordica) and its subsidiary Xfly filed for bankruptcy today after investor Lars Thuesen withdrew from privatisation talks.
Lars Thuesen, who owns the Danish charter airline Jettime, submitted a bid to acquire Nordica in October. Nordic Aviation faced difficulties after Scandinavian Airlines (SAS) announced the cancellation of its aircraft, crew, maintenance and insurance (ACMI) deal with Xfly on September 25.
The lost contract proved insurmountable for Thuesen, who explained in a statement:
Overall there were too many risks facing the company and too little time to solve them. It is sad, because it is two good companies, where a lot of positive things have happened over the last 12 to 18 months. However, losing 90% of your revenue (the SAS contract) two months before the winter season starts, killed it.
CEO of Nordic Aviation Group Remco Althuis commented:
Nordic Aviation Group and Xfly have gone through a challenging path over the past 15 months since the airline began its turnaround process in August 2023. This journey has been marked by immense efforts from the entire team to bring the airline to a new and sustainable footing.
He added that since Spring 2024:
We have succeeded in serving our clients to the highest industry standards, as evidenced by above-average punctuality and service levels. This has been recognized by our valued cooperation partners, who have commended our team for the excellent service provided.
After privatisation talks failed, Nordic Aviation Group informed all employees and partners of its intention to file for bankruptcy. It plans to hand aircraft back over to lessors over the coming days.
About Nordica
The Estonian government founded Nordica in 2015 after the previous national airline, Estonian Air, declared bankruptcy. Nordic Aviation Group is 100% owned by the Republic of Estonia and employs over 600 staff worldwide.
Nordica leases one A320-200, which is currently active and wet-leased to Bamboo Airways, while Xfly operates six ATR72-600 aircraft and eight CRJ900s.
Nordica’s bankruptcy announcement comes days after budget US carrier Spirit Airlines filed for bankruptcy on Monday (Nov. 18).
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