Estonia’s Nordica Privatization Moves Forward
The privatization of Estonia’s national airline, Nordica, and its parent company, Nordic Aviation Group, is likely to proceed under the new government. Erkki Keldo, Estonia’s Minister of Economic Affairs and Industry, has indicated that the current administration intends to continue with the previous government’s plans to privatize state-owned enterprises.
Keldo explained, “The previous government reviewed state-owned companies with the aim of privatizing those that are not critical to the state’s core functions. We are planning detailed discussions to determine which companies should be privatized and to what extent.” This approach reflects a commitment to streamline state assets and focus on essential functions.
The new government, led by Prime Minister Kristen Michal, has not yet addressed potential changes to the list of companies slated for privatization. Keldo noted, “The new administration has been in office for just over two weeks, so we have not yet addressed whether there will be adjustments to the privatization list.” This suggests that the privatization plans are still under review and may be subject to future discussions.
Under the former administration of Kaja Kallas, the privatization of Nordic Aviation Group was halted. This decision was influenced by offers from two potential buyers that failed to meet the government’s financial expectations. Additionally, one bidder did not provide adequate information about its funding sources. Kristen Michal, then Minister of Climate, had advocated for suspending the sale to reassess the terms and consider necessary restructuring.
As the new government focuses on addressing financial challenges, including tax reforms and increased defense spending due to regional security concerns, the future of Nordica’s privatization will depend on ongoing evaluations and strategic decisions. The administration’s approach will likely shape the next steps in this process.
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com