Nordica CEO: Airline meeting its goals (4)

A Bombardier CRJ900 regional jet in Nordica livery. (Nordica)
9/20/2016 10:54 AM
Source: BNS
Category: Business

State-owned Estonian airline Nordica has been meeting and even surpassing its financial targets, according to CEO Jaan Tamm.

Asked by BNS if that could mean revenue slightly in excess of the targeted 50 million euros and a smaller loss than 15 million euros, Tamm refused to delve into speculation.

"There's still three and a half months of the year left," he said. "The indicators for the summer have been good; this allows us to enter into the fall-winter season with good expectations. The numbers that we published, our performance is consistent with them and we keep doing our work as planned."

While the company will not publish any financial performance indicators before the end of the year, monthly statistics concerning the share of flights by own aircraft, load factor and the number of passengers are the most important inputs for these indicators, the CEO explained.

"When we are able to deliver on that — to fly with our own aircraft — this will definitely be the most significant input to stabilizing our financial performance," he added.

According to Tamm, he number of passengers flying on Nordica flights has been consistent with expectations and the estimate for 2017 rather is conservative, with no upswing expected. He said that at one point the company hopes to have similar passenger numbers to its predecessor Estonian Air, but not in absolute terms.

"It depends on the number of routes operated and the number of aircraft. Estonian Air used to have one big route with regards to the number of passengers, which made an impact on the absolute number — Copenhagen," he explained. "We don't fly there."

Tamm remained tight-lipped when asked if Nordica could introduce any new services next year.

"We are keeping an eye on the market and analyzing things," he said, explaining that one route, if any, may be added in 2017.

Negotiations to operate more flights as subcontractor for other carriers are going on all the time, Tamm said, adding, however, that it was currently too early to go into specifics regarding this matter.

Editor: Aili Vahtla

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