Nordica and Xfly to File for Bankruptcy

Nordic Aviation Group AS, the Republic of Estonia-owned parent company of Nordica and Regional Jet OÜ (Xfly), will cease operations following an announcement that both companies will file for bankruptcy. The decision comes after a potential privatization deal with Jettime owner Lars Thuesen fell through on November 18, 2024.

The collapse marks the end of a challenging turnaround effort that began 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,” said Nordic Aviation Group CEO Remco Althuis.

Failed Privatization Efforts
Nordica was founded in 2015 to maintain Estonia’s air connectivity after the collapse of Estonian Air. The Estonian government began privatization discussions in late 2023 to secure the airline’s future. However, despite goodwill on both sides, the potential investor ultimately decided not to proceed, citing high associated risks.

“The investor informed us about his intention not to proceed with the privatization,” explained Kadri Land, Chairwoman of the Supervisory Board. “Consequently, the Management Board informed the Supervisory Board about its intent to cease operations and initiate bankruptcy proceedings.”

Impact on Operations and Employees
All employees and partners, including aircraft lessors, have been notified of the impending bankruptcy. Althuis stated that the company aims to return leased aircraft as quickly as possible, with formalities expected to unfold in the coming days. Employees will also be supported through the Estonian Unemployment Fund as part of the bankruptcy process.

Fleet and Business Model
According to ch-aviation, the active fleet includes one Airbus A320-200 and three Bombardier CRJ900ERs. Since 2019, Nordica and Xfly have focused primarily on the ACMI (Aircraft, Crew, Maintenance, and Insurance) market, operating flights for other airlines under lease agreements.

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