Estonia's state-owned airline, Nordic Aviation Group AS (Nordica), along with Regional Jet OÜ (Xfly), are facing the unfortunate reality of having to cease operations as they prepare to file for bankruptcy. This decision comes after hopes fell through for Lars Thuesen, owner of Jettime, to potentially take over the struggling companies. Despite efforts to turn the airlines around over the past 15 challenging months, including attempts to secure private investment, Nordic Aviation Group's CEO, Remco Althuis, expressed gratitude for the dedication of the entire team in striving to establish a new and sustainable path for the airline.

Nordica was established back in 2015 by the Estonian government to ensure the country's air connectivity following the closure of its former flagship carrier, Estonian Air. Privatization discussions have been ongoing since late 2023, with recent efforts to find a suitable investor. However, these hopes were dashed when the potential investor decided against proceeding due to perceived high risks, as noted by Kadri Land, Chairwoman of the Supervisory Board of Nordic Aviation Group.

As part of the bankruptcy process, Nordic Aviation Group plans to inform all employees, business partners, and aircraft lessors about the necessary steps to be taken. The aim is to return the aircraft currently in use to their respective lessors promptly, with formalities related to bankruptcy proceedings, including notifications to the Estonian Unemployment Fund, being carried out diligently. With an active fleet comprising a single Airbus A320-200 and three Bombardier CRJ900ERs, Nordica has been primarily focused on the ACMI market since 2019.

Going forward, the aviation industry will closely monitor the developments surrounding the closure of Nordic Aviation Group and Xfly as stakeholders navigate through these challenging times. The impact of this move on Estonia's aviation landscape remains to be seen as the industry adapts to this significant change.