Court rejects Nordica's back pay appeal for Estonian Air employees

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A jet in Nordica livery at Tallinn Airport. Source: Nordica

The 2nd tier Tallinn Circuit Court has rejected appeals by Nordic Aviation Group AS and Transpordi Varahaldus OÜ in a case concerning the payment of €1.5 million worth of wages for 2015 to former employees of Estonian Air.

The CEO of Nordic Aviation Group, Erki Urva, said on Friday that the court's decision is a great disappointment.

"Since the decision of the circuit court came this afternoon, we haven't had time yet to familiarize ourselves with it in detail. We will decide about our next steps in the next 30 days," Urva said.

The first-tier Harju County Court decided on August 31 last year that the state-owned airline Nordica and aircraft lease company Transpordi Varahaldus must pay outstanding remuneration from 2015 to employees of Estonia's former national airline, the now bankrupt Estonian Air.

The county court decided to grant the action by former employees of Estonian Air against the airline's legal successors Nordica and Transpordi Varahaldus. The amount to be compensated is €1.5 million.

Estonian Air ended its operations in November 2015 after the European Commission's Directorate General for Competition had ruled that state aid provided to Estonian Air was not legal and the airline has to pay the money back to the state. Thereafter the airline filed for bankruptcy.

AS Nordic Aviation Group, or Nordica, subsequently became the legal successor of Estonian Air.

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Editor: Helen Wright

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