Nordica CEO Jaan Tamm projects airline’s first-year loss to be €15m (5)
According to its CEO, Jaan Tamm, Nordica is running at a €6m loss, which puts the projected loss for the airline’s 15-month first year in business at €15m. The expected total turnover for the same period is €50m.
The reason for the loss were the enormous costs of starting and developing the new flag carrier, daily Postimees wrote on Friday. The costs could be treated as investments into the company during its fledgling months, the paper added.
Tamm said that this loss had to be expected, and that they had actually worked with an projected loss of up to €23m. “Half a year ago I dreamt about this number perhaps being a single-digit number,” Tamm remarked. He expects Nordica to break even in 2019.
Minister of Economic Affairs and Infrastructure Kristen Michal (Reform) said that based on the company’s development plan, losses of €6m and €3m were expected for the next two years. He expects Nordica to reach its break-even point, and perhaps even profitability, in 2019.