Estonia May Liquidate State Lessor After Nordica Jet Sale
The Estonian government is weighing the liquidation of state-owned aircraft lessor Transpordi Varahaldus following the sale of its final aircraft asset, a former Xfly CRJ900ER regional jet. The move would mark the effective wind-down of an entity created specifically to support Estonia’s now-defunct state airline operations.
The aircraft was included in a broader transaction completed in July 2025, under which Regional One acquired seven CRJ900ER aircraft from Transpordi Varahaldus for a reported USD 37.5 million. With the disposal of the last jet, Transpordi Varahaldus no longer holds any aviation assets, prompting the government to reassess the lessor’s future role.
A key unresolved issue is the fate of Transpordi Varahaldus’s claims against Nordica, the former Estonian flag carrier and parent company of Xfly. Those claims are currently part of Nordica’s ongoing bankruptcy proceedings, and the government must determine whether they should be pursued, written down, or transferred as part of any liquidation process. No final decision has yet been announced.
Transpordi Varahaldus was established as a single-purpose entity to own and lease aircraft exclusively to Nordica and its regional subsidiary Xfly. It had no third-party customers and no independent commercial leasing activity, leaving it without a clear mandate once Nordica collapsed and Xfly ceased operations.
Nordica entered bankruptcy after years of financial losses, repeated restructurings, and unsuccessful attempts to reposition itself as a regional capacity provider for other airlines. The failure ultimately left the Estonian state exposed through aircraft ownership structures and intercompany obligations, including those held by Transpordi Varahaldus.
The potential liquidation reflects a broader policy shift away from direct state involvement in airline ownership and aircraft leasing. Estonian authorities have signalled that future aviation strategy will prioritise market-based connectivity solutions rather than state-backed carriers or asset vehicles. Closing Transpordi Varahaldus would align with that approach, eliminating ongoing administrative costs tied to an entity with no operating assets.
Industry observers note that the sale to Regional One effectively capped the state’s exposure on the aircraft side, though the outcome of Nordica’s bankruptcy proceedings will determine the final financial impact on taxpayers. Any recovery on claims held by Transpordi Varahaldus could influence the timing and structure of a liquidation.
If approved, the wind-down would formally conclude Estonia’s experiment with a state-owned airline and captive aircraft lessor, bringing to an end a chapter that has shaped the country’s aviation policy for more than a decade.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com