Estonia’s Nordica Advances Sale Talks with Seven European Suitors

Estonia’s Ministry of Climate, responsible for overseeing the state-owned flag carrier Nordica (ND), is actively engaged in discussions with seven potential European suitors for the full or partial sale of the struggling airline. The ministry aims to secure a preliminary agreement with at least one of these entities by the end of the month, according to reports from the Estonian public broadcaster ERR.

The sale also involves the potential divestment of Xfly (Estonia) (EE), a sister carrier and ACMI specialist, which is prepared for sale independently or in conjunction with Nordica. The lessor Transpordi Varahaldus, another subsidiary of Nordic Aviation Group, is not currently part of the agreement and will be subject to a separate sale at a later stage.

Sander Salmu, the undersecretary for mobility and transport at the ministry, stated that initial materials were sent to interested parties before Christmas, and more detailed feedback is expected in the first weeks of January. The process has become more formal, with Superia, the Baltic financial advisory firm overseeing the sale, providing further information to the potential suitors.

“We’ve started with those who are active in Europe and are familiar with the field – so that we wouldn’t have to start explaining from scratch, so to speak, what Europe is and how aviation works here,” added Salmu.

The Estonian government has made it clear that it has no intention of allocating additional taxpayers’ money to the airline and expects the new owner to handle any future capitalization needs. In the event that the sale falls through, the government does not rule out the possibility of shutting down Nordica.

The decision to privatize Nordica follows a critical evaluation by Estonia’s state auditor in September, which recommended the sale of Nordica, Xfly, and Transpordi Varahaldus. Nordica is currently undergoing a special audit, and depending on the findings, the government may consider claims against the previous management.

According to ch-aviation fleets advanced data, Nordica operates a single leased A320-200, while Xfly’s fleet includes nine CRJ900ERs and nine leased ATR72-600s. The ongoing negotiations will shape the future of these carriers and their role in Estonia’s aviation landscape. Stay tuned for further updates on this significant development.